February 14, 2025
As a buyer, seller, landlord, tenant, or real estate professional, you must be aware of the list of fraudulent developers. Almost anyone can fall victim to a scam.
For this reason, it is essential to learn how to avoid real estate fraud and understand how to know if a developer is legal.
Daniele Zemignani, an international broker with 32 years of experience and owner of real estate agencies in Mexico, the Dominican Republic, and Florida, explains in detail today how to prevent real estate fraud.
Keep reading!
What Is Real Estate Fraud?
Real estate fraud is a crime committed with the intent to gain economic benefits or valuable information, harming one of the key players in the sector.
However, according to the lawyer, the term “real estate fraud” does not officially exist.
“The Federal Consumer Protection Agency (Profeco) uses the term ‘real estate fraud’ for certain practices. Right now, there is an initiative to add this term to the penal code, though it has not been approved yet.”
Security Incidents in the Mexican Real Estate Market
In 2024, Profeco identified and blocked 3,800 attempted real estate frauds, marking a 58.33% increase compared to the previous year. This indicates that fraudulent developers and real estate scams are a growing and prevalent threat in Mexico. For this reason, it is vital to dedicate a lot of time to meet your trusted real estate broker ( buyer broker ) , rather than wasting time searching for properties on the internet. Invest time in getting to know real estate agents with a valid SEDETUS license (the national entity that regulates the real estate profession). If your interest is focused on the Riviera Maya, you should know that the state of Quintana Roo requires specific qualifications, a clean criminal and civil record, previous experience, and a strong reputation through client reviews to grant the real estate license, which is mandatory. Don’t fall for scams; in the Riviera Maya, there are more than 8,000 people working in the sector, but only 400 have the license. Protect your money by investing only with brokers who hold a SEDETUS license. I’m attaching a photo of my license so you can see what it looks like.
The List of Fraudulent Developers
How to Know if a Developer Is Legal?
If you are about to engage with a developer, it’s important to understand how to assess whether the developer is legal or trustworthy. According to our expert’s guide:
- The Federal Taxpayer Registry (RFC) is not a reliable way to verify the legitimacy of a real estate company, as 80% of developers don’t have one. Only the largest developers tend to have an RFC.
- Checking the reputation on Profeco may not always be effective, as 90% of real estate service providers are independent advisors rather than companies.
- The best way to assess a developer’s reputation is to look online, on social media, and read reviews from previous clients.
Profeco’s List of Fraudulent Developers
Profeco’s Commercial Bureau is a list of fraudulent developers.
To check this list, visit Profeco’s website and under the Commercial Behavior tab, you can see providers with complaints. Simply enter “Inmobiliarias” in the “Commercial Name” or “Legal Name” section and click “search.”
This will show you the updated blacklist of developers with the most complaints registered with Profeco.
Being listed among companies with an open dispute does not automatically make you a fraudster; there are cases where a dishonest client opens a complaint. During the process by Profeco, it may emerge that the developer is innocent, so it’s always a good practice to consult these records with your trusted real estate agent. Certainly, if you invest with us, this issue does not arise because we preselect developers with great accuracy.
Profeco’s Most Demanded Developers
Profeco’s Commercial Bureau focuses on complaints but can serve as an indicator of developers with a high number of demands.
As of January 2025, the most complained-about developers are:
| Company Name | Commercial Name | Complaints |
|---|---|---|
| INMOBILIARIA LR, SA DE CV | INMOBILIARIA LR, SA DE CV | 389 |
| INMOBILIARIA Y CONSTRUCTORA SOLORZANO, SA DE CV | INMOBILIARIA Y CONSTRUCTORA SOLORZANO, SA DE CV | 71 |
| BALI DE LAGOS INMOBILIARIA, SA DE CV | BALI DE LAGOS INMOBILIARIA, SA DE CV | 69 |
| INMOBILIARIA CALIDON, SA DE CV | INMOBILIARIA CALIDON, SA DE CV | 54 |
| INMOBILIARIA PORPER, S DE RL DE CV | INMOBILIARIA PORPER, S DE RL DE CV | 54 |
It’s important to note that this platform primarily lists developers and some professionals with complaints. For a deeper understanding, always check reviews online to learn more about a developer’s reputation.
Profeco’s List of Registered Developers
If you’re buying a property for residential use, adhesion contracts must be registered with the Public Registry of Adhesion Contracts (RPCA).
The RPCA serves as a list of registered developers. According to the Federal Consumer Protection Law, the adhesion contract is the document the developer creates to establish terms and conditions for acquiring a property.
Profeco reviews these contracts to ensure they do not contain abusive or inequitable clauses. To consult models of these contracts, search for Real Estate Intermediation Services on the RPCA website here.
How to Report a Fraudulent Developer?
In case of a contract breach by a developer, affected individuals can file a complaint with Profeco at one of its 38 Consumer Defense Offices (ODECO) or by calling Consumer Telephone Line at 55 5568 8722 or 800 468 8722.
Additionally, disputes can be resolved online via Concilianet, where users can submit documents electronically through the website.
Common Types of Real Estate Frauds
If the offer or price of a property seems unrealistically low, it’s likely a real estate scam.
Common types of real estate fraud include:
- Land transactions
- Infonavit transfers
- Foreclosure sales
- Upfront payments
- False listings on real estate portals
- Lack of professional training among real estate agents
- Absence of original deeds
- Properties not ready for title transfer
- Unclear payment methods
- Unverified documents
How to Avoid Real Estate Fraud?
Prevention is crucial. Here’s how to avoid falling for real estate fraud:
- Compare property prices: Fraudulent listings often feature properties priced well below market value.
- Visit the property in person.
- Avoid advance payments or upfront deposits.
- Verify documentation: Check titles, receipts, plans, and any other property-related documents.
- Conduct a property inspection: Ensure the property is in good structural condition.
- Close the deal with a notary public.
How to Know If a Deed Is Fake?
A deed is the most important document that legally recognizes someone as the owner of a property.
To check if a deed is fake, you can consult the Public Registry of Property and Commerce (RPP and C CDMX), where you can verify the property owner’s identity.
How to Detect Real Estate Fraud?
In the buying or renting process, always request identification, names, and addresses from all involved parties. If they refuse to share their documentation, it’s likely a real estate scam.
Keep receipts, photos, screenshots of messages, and any other evidence for future legal action if necessary.
Also, be cautious if the price of the property is unusually low. This is a common indicator of fraudulent developers.
Conclusion
By following these tips, you can significantly reduce the risk of encountering a fraudulent developer in Mexico and protect yourself from real estate scams. Always perform thorough checks, research online reviews, and consult with legal professionals when necessary. Profeco provides valuable resources for identifying and reporting bad developers, ensuring a safer experience for buyers and sellers in Mexico.
Are you looking for a safe real estate investment in Mexico ? ask a 45 minutes zoom call consulting for free at:
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