Internet Scam Offers Buyers Area Real Estate

This lot plan or variations thereof which have been image flipped and renumbered have accompanied many of the scam sale offerings

It seems that buyers have been plunking down large sums of money on the internet to buy lots in what appears to be a non-existent subdivision development in the Margarita-Sixaola area.

Caribe Sur Real Estate has received visits from a number of people who have visited their offices looking for assistance in locating the property they’ve bought.

The lots are being promoted on a various websites including eBay and marketed as 1.75 acre ocean view properties.

The lots are promoted as ready to build with “nearby” electricity, roads and septic sewer systems in place. There is no electricity, there are no roads, there is no subdivision, there are no septic sewage systems, the land is raw jungle and sometimes very steep.

Caribe Sur checked with the local municipality and they have no knowledge of such a development. They checked with all the neighbors — including those on the supposed land survey — and none have ever heard of such a development — or such a neighbor!

Of the many victims who have flown down to locate their investment once they have made the final payment — none have ever found the lots. Topographers have been hired — neighbors have been harassed — some even sued — and yet no buyer has ever ended up with what they purchased.

Caribe Sur contacted the seller who is listing many of these properties, Michael Leu, and asked him to come down and show them the lots, or send someone down that knows them — but they have been ignored. He has never done so — not for them and not for any of his buyers.

The rules of real estate in Costa Rica can be complex, can depend on where the land is located (rules for within reserve areas and for in the maritime zone are different for example), and can be unfamiliar for foreigners. Some common sense rules though should keep you safe:

1. Don’t buy property sight unseen.
2. Consult a local lawyer who has been referred by someone you trust (not the seller) on any transaction and before any money is exchanged.
3. Check local market conditions and prices. In this area, land is generally priced at a particular amount per square meter (depending on the view, location, etc). If the deal sounds too good to be true, it probably is.

Using a reputable local real estate agency is a good place to start your search. The Puerto Viejo Real Estate page has a list of local agencies and developers.

The area and the lifestyle is also not for everyone. So don’t rush into buying. There are many affordable rentals where you could spend 6 months or more getting to know the area before you purchase a lot.

Sharing information about scams like this is a good way to make them powerless to affect people. Caribe Sur has published a detailed page on this scam with much more information on how this is being marketed and how people can avoid this. We applaud all the work they’ve done to document this and suggest you share this information and the link http://www.caribesur-realestate.com/margarita/ widely on Costa Rica message boards and such.

From Scott at WeLoveCostaRica.com: We’d like to thank Doug Dosdall at PuertoViejoSatellite for his permission to reproduce his article and for repeating what we have said for years and years which is…

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.