7 Common Real Estate Scams in Latin America to Avoid

It's no secret why thousands of people choose toUprooting these people is extremely difficult, and this
move to Latin America each year to invest and retire.difficulty should be avoided if possible.
The pleasant weather, fresh food, welcoming locals4. The Invalid Contract Scam: This is when you sign a
and great property deals all are big draws. But buyerdocument or contract in Latin America, but don't
beware, here are a few of the common scams outofficially register it with the corresponding Municipality,
there to watch out for when looking for your dreamrendering it unenforceable! Using a good lawyer can
beach house.help prevent things like this from happening.
1. The Bickering Sibling Scam: This scam is very5. Multiple Sale Scam: In most Latin countries, once you
prevalent all over Latin America. This is when thepurchase a property you have to register it officially
house is owned by various people (often left towith the local Notary and the Office often designated
children in a will) and some of the owners try to sellthe "Registro de Propiedad." If you don't, the seller
the property while other legal owners don't wish to sell.could sell the same property multiple times, and the first
This can lead to big problems for you if you payone to register the property with the local authorities
someone before getting this legally cleared up.gets the official deed to property. To avoid, make sure
To avoid being burned by this scam, work with a goodas soon as you buy to register the property.
lawyer and make sure they null the legal rights anyone6. The Useless Property Scam: This is where
has to the property.someone sells you a property that has some
2. The Uncle Larry Scam: Often a house is soldgovernmentally imposed building restriction, rendering
without informing an active tenant, and the tenantyour purchase useless. A good lawyer can help you
simply refuses to leave. The police in many countriesavoid this scam. In other cases your property may be
of Latin America don't help much in these cases. Soon the base of a large, unstable mountain of sand that
before you buy, make sure there are no activewill collapse on you once you start construction. To
tenants. Or if there are, make sure the current owneravoid, always visit a lot before you buy it, and don't
gets them out before you hand over the money. Thiscommit to anything over the internet.
can be one big headache for a new home buyer.7. False document scam: In Latin America, anything can
3. Shanty Town Scam: This has been happening everbe copied. Identical-looking passports can be made for
since the Spaniards first arrived hundreds of yearsaround $150. Needless to say, some people may try to
ago. You will see that in some areas of the coasts, thesell you a property with false title and registration
cheapest beachfront real estate is inhibited bydocuments. The way to prevent this is to always
make-shift shanty towns. Many of these people havework with a trustworthy lawyer.
been here for decades, yet they don't actually haveDon't let this list of scams scare you off. Moving to
the title to the land. This opens the door to someoneLatin America was the best choice many people,
coming along and buying the land without theirmyself included, ever made.
knowledge and reselling it right out from under them.