Investment or Scam? The Reality of Real Estate Fraud in Jalisco

Did you know that in Jalisco you could be paying for a house that doesn’t actually exist?

Behind many real estate developments lie practices that clearly fall within specific criminal offenses, where developers use promise contracts as a tool of deception to collect multimillion-dollar advance payments that never materialize into actual construction.

In the current context, real estate fraud is not merely a breach of a civil contract; it is a property crime carried out with intent, aimed at obtaining an undue benefit at the expense of the buyer’s assets.

Background

The landscape of criminal justice in the state of Jalisco presents critical challenges, as, according to data obtained from the Regional Investigation Deputy Prosecutor’s Office, between 2020 and May 2025 a total of 343 investigations for property-related crimes were initiated.

This figure is alarming. The system is facing an uncontrolled growth of fraudulent real estate companies, as the number of fraud complaints in Jalisco has increased dramatically, rising from 6,960 cases in 2018 to more than 10,266 by the end of 2023, according to the Executive Secretariat of the National Public Security System.

Although digital platforms report a slight decrease in incidents during 2025, the legal reality indicates that real estate offenders have sophisticated their methods to camouflage themselves among the large number of real estate agencies that offer their services day after day.

From the perspective of Jalisco State Penal Code, these behaviors are clearly sanctioned. The Article 250 It establishes that fraud is committed by whoever, by deceiving or taking advantage of an error, unlawfully obtains something or achieves an undue profit.

In the pre-sale sector, the provisions of Article 252 take on special relevance:

• Section VI: penalizes anyone who receives the price of an item and fails to deliver it within the agreed period.
• Section XI: punishes anyone who offers construction services and fails to apply the funds obtained for that purpose.

These defects, commonly disguised as “administrative issues,” are in fact constituent elements of a criminal offense and require a solid litigation strategy.

How can one prevent becoming a victim of this type of crime?

“Prevention from a legal compliance approach is the only real barrier against victimization.”

A fraud scheme usually presents clear warning signs:

• Suspiciously low prices (10% or more below market value).
• Pressure to make advance payments under the pretext of “reservation fees.”
• Lack of proof of property ownership.

Before delivering any capital, it is essential to carry out a legal audit that includes:

• Verification at the Public Registry of Property.
• Review of records in the Judicial Bulletin.
• Validation of the company on the SIGER platform.

Even aspects such as hidden defects, seemingly minor, may constitute a claimable offense if intent to conceal information in order to mislead the buyer is proven.

Proposal

At Hernández, Godínez & Martínez Abogados, S.C. (HG Abogados), we understand that asset protection requires an expert approach in criminal law and compliance.

Our firm does not limit itself to reviewing the surface of a contract; we delve into its legal and tax structure to identify criminal risks before they occur.

We have a team of specialists dedicated to providing highly specialized legal and tax services, ensuring that every real estate transaction is equipped with preventive criminal protection.

Under a strict code of ethics and confidentiality, we support our clients so that signing their contract marks the beginning of a secure asset, not the start of a legal dispute.