Phase I Condo 210 to Sell at Auction

Recently the court has ordered a public auction of Condo 210 because the owner(s) have failed to pay their HOA dues for several years. The auction will take place on October 21 at 12:00 hours.

The starting (minimum) bid will be $3,017,316.66 pesos or $136,260 USD at current exchange rate. This minimum price is incredibly low compared to recent sales and that is an opportunity.

The successful buyer of this condominium will be responsible only for HOA dues accruing after date of auction. The proceeds received by the court will be given to Phase 1 HOA to recover past dues, interest, and penalties for unpaid dues for past years.

According to the HOA Attorney used for pursuing delinquent accounts, in order to make a bid, the person interested needs to:
1. File a written request along with a deposit to court ́s account in the
amount of 10% of the initial price ($301,731.66 pesos to the account number 0111049477 on BANORTE under the name of “Fondo Auxiliar para la Administración de Justicia del Estado de Sinaloa”). Please confirm the bank account prior to deposit, because the bank only accepts cash and cashier ́s checks. The written request needs to comply with requirements of article 571 of the above mentioned law.

2. All the deposits will be returned to the bidders after the auction except
for the winner’s bid. The court will keep it as a deposit and as a collateral of the obligation to pay the rest and as part of the price of the sale-auction.

3. The executor (EDM HOA administrator of condo 16-A) can act and bid on the auction (there is no need for him to place the 10% deposit).

4. The day of the auction the judge will read all bids and give the bidders the opportunity to make a better offer.

5. Once the auction is finished the judge will check all the procedures (within 3 days) and approve the sale. At this time, the buyer will pay the rest of the money (usually within the next 3 days). Then the judge will require the defendant to voluntarily grant the title to the buyer. If not, the judge will issue the title.

6. If there are no bidders, the executor will have the right to buy the apartment for the first price or to request a new auction to offer the apartment with a discount of 10%. Usually, the first auction brings no bidders and everyone then waits for the second auction with the 10% discount in place.

Any potential buyer is encouraged to hire their own lawyer to help in this procedure. This should not be expensive as they should charge by the hour and not a percentage of the price. Regular lawyer’s charge for 5-10 hours is $10,000-$20,000 pesos). Retention of a lawyer is important especially if the bidder is a foreigner because a trust will be necessary. The assistance of a notary public or a trust expert will become crucial.

Condo 210 is a 2-bedroom 2-bath condominium, and it is in its original state. No remodeling or maintenance has been performed since being built and all appliances and fixtures are original.

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