Let’s say you just bought a small house in Mexico, as an investment property. You can’t be there every month, maybe not even every year, so you need to hire somebody local to take care of it.

Whoever you decide upon, either a property manager or somebody who presents himself as the administrator of a homeowners’ group, be careful what papers he requires you to sign. As much as you trust him, even if you met him in person, never sign a power of attorney agreement.

It was reported that scammers use this to con older people who own properties in Mexico, and then take advantage of the POA to sell the house. By the time the owners come down to Mexico, scammers are long gone.

How to avoid: get a proper translation from the Spanish and don’t sign a Power of Attorney contract for this.