BUSINESS SECTION

Gringo Gazette exposes Real Estate Scam - Coldwell Banker

The Gringo Gazette North, long known for it's commitment to exposing  illegal and unethical behavior of Baja businesses has turned it's attention to the ongoing poor business practices of Coldwell Banker in Rosarito.  Unknown to much of the American community there has constant complaints to the office, located at Costa Bella, due to Mr.  Forral's agenda of promoting that development against the advice of every real estate professional in Rosarito. Gringo Gazette article

Mr. Forral has repeatedly stated that there are no problems with Costa Bella that would keep it form obtaining title, bank trust and eventually title insurance and finance.  This seems unlikely when, as the Gringo Gazette reports, there is not even a sewage plant. The raw sewage empties into the ocean behind the property. The lack of proper sewage is only one of the troublesome issues being hidden from potential buyers.  Longtime residents have complained about inconsistent electricity, leaky roofs and water bills gone unpaid.  Lawsuits, both threatened and real have been part of Costa Bella's history from the beginning and only a few weeks ago an embargo was placed on the property as a result of unpaid bills. The "partnership" between Mr. Forral and the developer of Costa Bella was a mystery to the real estate community, who has long been aware of the absence of title and it's long history of "smoke and mirrors " . 

Over a period of months, the members of AMPI (the Real Estate association), repeatedly warned Mr. Forral of the consequences of selling a property with such a black reputation. These warnings fell on deaf ears and as a result the members of AMPI felt they had no other option but to cancel Coldwell Banker's membership in that organization.

In the meantime, Coldwell Banker has gone on to promote Todas Santos. This development is another property being visited on every Coldwell Banker Baja Coastline
bus tour and is owned by the developer of Costa Bella. It has been reported by the local Spanish speaking newspaper (Eros), there are no building or construction permits for this development, in spite of the fact that it is illegal to begin marketing a property without them.

A series of complaints against Coldwell Banker from buyers who were promised "transaction services" and were charged for them have been making their way to AMPI as well as the Gringo Gazette. Mr. Forral seems to believe that if he just ignores them they will go away.  The reported problem with the buyer of Playa Blanca receiving possession of the unit before settlement was exposed only when the seller was informed that the locks had changed. The buyer had spent over $20,000.00 renovating the condo, changed her mind about the purchase and was promised by Mr. Forral that it could be re-sold, at a profit without the seller knowing. 

Coldwell Banker Baja Coastline arrived in Rosarito promoting itself as having the best trained agents in the Baja, when in fact only a couple have ever sold real estate before anywhere.  At this time, there are very few, if any other real estate companies that will associate with Coldwell Banker.  Complaints of deposits not returned, finance not  forthcoming as promised and Title Insurance non-existent have resulted in the forming of a group of realtors who will try to enforce a real estate code of ethics .

The really amazing part of this is that Coldwell Banker Mexico seems totally disinterested in the problems caused by the Rosarito office and has gone on to sell them the Ensenada franchise.  It is only a matter of time until the same problems begin to appear in that area. 

Baja Consumer Reports
August 25, 2005

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