Customers that give non-refundable deposits to resort projects that are not yet built, are doing so primarily on the trust of the company. What might seem like a good deal could cost an investor in such a property dearly. Take for instance the project in Mexico recently that went belly up prior to being completed. Everyone lost all their deposits, investments and money. Worse, the company doing the project was part of the Trump Corporation, and had their name on it.
Since this project was in Mexico, there was little if anything anyone could do, there was no money left in bankruptcy for anyone, nothing left, all gone, and that is all she wrote. And it could not have come at a worse time, with the overall stock market down, even more alarming was the fact that many of the folks that put money down, did so to have a place for their retirement in Mexico. Now their dream is gone along with all the money they gave.
For some these deposits were for speculation or vacation homes, and even though they could never have imagined the whole thing going bankrupt and their money all disappearing, they can recover from it and chock it up for experience. And maybe that’s the purpose of this article, maybe you too can remember this so you are not caught with the same bad experience.
Real Estate law is not as cut and dry as you might think and when you are dealing with investments in other nations, especially speculative resort properties like this you are gambling, so make sure you understand that and act accordingly. Please consider this.