Group Offers Guidelines for Buying Property in Baja.

ROSARITO BEACH, Mexico -- A major Baja California real estate group has issued a series of guidelines to assist foreign residents in purchasing oceanfront and other property there.

The suggestions range from obtaining U.S. title insurance, which became available in the past two years, to dealing with members of established real estate groups.

"Baja is having a building boom and thousands of people, mostly Americans, are coming here to buy houses, condos and land," said Rafael Liceaga, president of Investing in Baja's Oceanfront. "We want the process for them to be comfortable and secure."

IBO is an association of developers, finance and title companies formed last year to promote Baja property and provide potential buyers with information on the purchasing process. It does this through expositions and seminars.

"Because thousands of Americans have bought property in Baja, this area is a leader in real estate reforms and in making the buying process more reflective of that in the United States," Liceaga said.

"Still," Liceaga said, "there have been some problems and abuses in real estate transactions because of unethical sellers and lack of knowledge of proper procedures on the part of buyers.

"The great majority of transactions have gone well and resulted in very happy buyers," Liceaga said. "That has resulted in people getting the home of their dreams on the oceanfront while realizing over 30 percent annual appreciation.

"Like anywhere, buying property is a complex process that requires due diligence," Liceaga said. "That is even more so when people buy in a country where they are not familiar with the purchasing process."

Currently about 2,000 units are under construction along Baja's 60-mile Gold Coast from Tijuana to Ensenada, at prices from $120,000 to more than $1 million, and more than 10,000 Americans already own property there.

Liceaga recommended the following steps for a comfortable and secure purchase:

1. Deal with real estate brokers who are members of the professional
associations AMPI or APTR. They have taken required courses, been
tested and received certification to sell real estate in Mexico.
A list of members is on the IBO website: www.bajasoceanfront.com.

2. Title insurance, which is available for most new Baja developments
from Stewart Title, guarantees your investment. Obtaining it is highly
recommended.

3. Obtain a bank trust for the property. Trusts are for a period
of 50 years, with a 50-year extension. The property also can be willed
or sold and a new trust obtained.

4. Unlike in the United States, there is no requirement to place
deposits in an escrow account and some developers do not do so. Before
giving any money, be sure the terms are clear and in writing.
Consulting a real estate attorney can be a good idea.

5. If you are financing the property, explore the options available.
Several U.S. companies and Mexican banks now offer financing to U.S.
residents for real estate purchases in Mexico. Most developers also
offer financing.

6. If you choose to deal directly with a developer instead of a
real estate agent, research them and ask for references if you feel
any discomfort. If you have a problem, you can convey it to ADETUR,
the Association of Resort Developers, through the IBO website. ADETUR
members also are listed on the website.