Where Water Meets the Land

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Peyton fumes over the cockeyed ways Americans approach Mexican real estate. First, he says, they think it's a gamble. "They have an irrational fear that the powers that be can arbitrarily take their land away." The cause of such fear, Peyton speculates, may go back to the 1930s, when Mexico nationalized the oil industry. "Nationalizing banks in the '80s didn't help," he adds. Nor did the Mexican supreme court decision last fall - however justified on legal grounds - to resolve a Baja California title dispute by ordering the eviction of numerous Americans who had built homes at Punta Banda peninsula. Still, Peyton stresses, the paranoia is ridiculous. "Unless the government goes down the tubes, appropriation is not going to happen." While caution is the normal response to fear, Peyton rails that Americans do the craziest things: choose a realtor who can't read a contract in Spanish; neglect to seek legal advice; and purchase land through presta nombres.

On only one account does Peyton admit that buying land can be riskier in Mexico than in the United States: Mexican real estate is unregulated. Someone can sell cars in Phoenix one day and real estate in Mexico the next, calling him or herself a broker. No special education is required or license granted. Buying and selling real estate in Mexico, says Peyton, is much like it was in the U.S. in the '30s - you need an attorney.

It didn't occur to the Dannuccis to use an attorney when they initially contracted to purchase land from an ejido that was in the process of privatizing. However, due to the headaches and delays involved in herding their parcels through domino pleno and procede, they later retained legal counsel. "It's good to have a reputable attorney," says Steven. "Attorneys are not nearly as expensive as they are in the states. It's well worth it." He also advises buyers not to purchase land before it is titled. "Don't cut any legal corners," he warns.

Eventually, Steven says, "I want to operate here and own land as a citizen." Gaining that status requires five years of residency. Many Americans living in Mexico dash to the border every six months for a new tourist visa, while some apply for a three-month FM-3 work visa before leaving the states and then apply in Mexico City for a permanent FM-2 resident's visa. This can be an arduous and complicated process.

Where to scout for land is another consideration. "Some places," says Steven, "are very remote and very cheap but could also be dangerous. The remote regions of most states can be dangerous because people live by the law of the jungle. You do see guys riding burros with bullets strapped across their chests. The remote regions of Michoacan are supposed to be beautiful, but most people say it's dangerous due to the growing of marijuana and poppies. Chiapas still has a war going on. If you go into any extremely poor region with money, the odds are good you'll become a victim. Jalisco, Oaxaca and Colima are relatively safe. Nayarit and Durango have beautiful, productive farmland, but wherever there's farming in Mexico, it's chemically intensive."

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