Predictable Problems with Mexican Law

About 25 years ago some acquaintances of ours retired in Mexico where they enjoyed luxury living not available for twice the cost in the US. Problems arose when the wife became ill. Mexican medical facilities weren’t adequate for her needs so they immediately made arrangements to enter the US where they knew she would be taken care of.

Upon entering Mexico our friends were required to make a $2000 deposit in Mexico From then on they did their banking and financial dealings in Mexico because it was more convenient. However when it became necessary to return to the States they found they weren’t allowed to withdraw any of their funds from the Mexican bank.

Because of the wife’s need for continued medical monitoring the couple had to remain in the US. They found themselves without funds and had to rely upon relatives to sustain them.

This incident had a corollary recently in Baja California. It is a rather sad story and one that wasn’t necessary. Mexico is one of the 3 most corrupt countries in the world and this information was available to anyone who did a little investigating.

Our system of law isn’t replicated in any other country, especially in the third world.

An estimated 70,000 Americans live in the Punta Banda area in Baja California. Several hundred are about to be evicted. Foreigners aren’t allowed to own property in Mexico and this should have alerted someone.

Original landowners, backed by the Supreme Court claimed this land was taken from them in 1973. A land reform movement spurred by the Mexican Revolution gave land by presidential decree to a group of peasants known as ejido. The Agrarian Reform Ministry drew up the boundaries. In the 1980’s these peasants leased lots to Americans, many Californians with at least 15 residents from Orange County. Maid service was cheap and the houses, about 85 miles south of the US/Mexican border, range in value from $50,000 to $1 million dollars. Even by California standards these are very luxurious homes. A 100 room Baja Beach and Tennis Club hotel, included in these expensive surroundings is to be taken over by the original owners along with houses built by the Americans.

This takeover has been a 27 year old battle. The original eviction order came in October of 1999 but the peasant group blocked entry to the property. It wasn’t only their land but the rent from the Americans as well that was involved in this take-back. Third world countries don’t recognize private property rights.

Not wanting to fool around anymore, the Mexican Supreme Court threatened to fire and arrest the Agrarian Reform Ministry officials if the evictions called for aren’t carried out within 10 days. That would be about the first of November, 2000.

It is doubtful if any residents will receive compensation from the landowners. Many retirees put all their savings into the homes and are at a loss wondering what will happen to them. The American Embassy has offered no assistance.

Mexican officials are expected to show up in trucks to take or impound all the furniture. It isn’t clear which houses will be affected. While only 23 homes in Punta Banda were designated all were originally targeted. Government agents stated they had no obligation to clarify the time or number of homes to be evicted.

Guess how one of the attorneys representing 23 Americans plans to fight this action? He is filing an action under provisions of the North American Free Trade Agreement (NAFTA) claiming "unfair non-reciprocal treatment and lack of due process." It isn’t considered likely Mexico will let NAFTA interfere in its "internal affairs."

Armed with American dollars that affords luxurious living in a poor country, these retirees overlooked the obvious in their drive for this upscale retirement. An unscrupulous government makes slaves of its subjects and fools of those who think they are immune from the prevailing corruption visited on the rest of the destitute population.

©Nancy Thomson 10/28/00