Tulum, Q.R. — Tulum’s Director of Urban Development admits confusion in the recent publication of illegal real estate developments. Lorenzo Miranda says it is common for real estate developers to register a corporate name but pre-sell under a different label.
He says it is also common for new companies to pre-sell their up-and-coming inventory to raise money first then regularize their state and municipal processes afterward. He admits that pre-selling under a different label than the registered business name makes it difficult to track down real estate projects. He says it is a practice the state is trying to eradicate.
“Unfortunately they first sell to raise cash and then seek to regularize their businesses after they have the money. It’s a practice we’re working to stop together with the state,” he said.
Miranda made the clarification after the recent joint publication by the Secretariat of Sustainable Urban Territorial Development (Sedetus) and the Municipality of Tulum listing 26 illegal real estate developments current selling.
He said that the commercial names used for pre-sales, rather than the corporate name, had not been taken into account when the list was drawn up.
Earlier this month, Sedetus (Secretaría de Desarrollo Territorial Urbano Sustentable) reported a total of 26 companies currently selling properties while in violation of state laws. The list of companies was released in coordination with the Tulum City Council, who issued a public alert regarding the real estate developments.
Following the statement, Miranda said there are 26 developments in the municipality in different states of legality. Since releasing the names, 12 have completed their legal procedures, while eight are still in the process and six have not yet submitted any documentation.
He reported that all the developments listed by Sedetus do physically exist, circling back to cases where some pre-sell campaigns do not match the registered business name.
“Developers often promote their projects on social media under a name other than the official one, which creates confusion among buyers. The Directorate is reviewing each case to provide certainty to the public,” he explained.
Miranda indicated that the main problem they have identified are these pre-sells, several real estate projects that raised money selling their up-and-coming inventory then began construction without finishing their legal procedures with the municipality and/or the state.
The Director stressed that the Tulum Urban Development Directorate maintains open public records about the legal status of each development, urging potential buyers to look into those records after physically visiting the property.
He also recommends that real estate purchase contracts include feasibility studies from the Federal Electricity Commission (CFE) and the Potable Water and Sewerage Commission (CAPA) in addition to specifying developer’s commitments regarding road paving, sidewalks and lighting. He says that completed contract should then be notarized.
“We encourage buyers to physically inspect the properties and documentation before signing. The Directorate can provide guidance on which projects are regularized and which are still in progress,” he said.
Miranda also warned about the irregular sale of properties circulating on social media which have no physical or legal basis. In these cases, he recommends interested parties first go to the municipal office to verify the authenticity of the offer and not be swayed by online advertising.
