A seller and perhaps his surrogates have been promoting and selling lots located just outside the Puerto Viejo area near Margarita - Sixaola. We understand that he also runs a similar operation on the other coast near Jaco. The lots are mostly promoted as 1.75 acre ocean view lots. He usually sells them individually, sometimes 2 or 3 at a time and at other times has sold the ENTIRE block of over 100 lots to individual "investors"!
The lots may have been sold via the mail system prior to the existence of the Internet. In recent years, they have been sold on EBAY, his own web site, numerous auction sites, and many other real estate by owner web sites. Our agency has received a number of requests from unknown victims to "resell" their properties - only to be informed of this scam.
The lots are promoted as having ocean view. No properties in that area have ocean view.
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.
We checked with the local municipality and they have no knowledge of such a development. We 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!
Despite many victims that fly 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. We have asked the seller to come down and show us the lots, or send someone down that knows them - but we have been ignored. He has never done so - not for us and not for any of his buyers and he has blocked the emails addresses from angry folks trying to contacting him.
The "title" that the seller awards his buyers is a Quit Claim Deed in the US. Absolutely no legal Costa Rican paperwork, contract or sales document is provided. Buyers arrive in Costa Rica with apparent "proof" of their purchase with paperwork that is meaningless in this country.
The seller does provide a reference to a large titled property in the name of his corporation and a land survey, but this is most likely a fraud and it does not reflect the the property that has been purchased.
Since the transaction amounts are usually under US$10,000, it is often not worthy of the victim to pursue the claim legally as it can be expensive and tiresome. The seller is playing between 2 legal systems and somehow falling between the cracks of both - somehow evading law enforcement to stop his deceitful activities.
We have tried to contact the seller about his activities. He he did reply - only to say that he was under investigation and he could not discuss anything - prior to blocking our email address from contacting him again. Since then we have been unsuccessful in contacting him. However, we have received many threatening emails and telephone calls - informing us that we will be sued for "defaming" him. At first we took him seriously, but soon realized this is just a planned tactic of his to try to scare off his adversaries.
Many clients that have contacted us have been successful in getting reimbursed by the seller.
If you know anyone that may have been affected by this scam, or need more information, please contact me directly.
