Car rentals in Honduras - Special Circumstances

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Special Circumstances

SPECIAL CIRCUMSTANCES: Real Estate Investment: U.S. citizens should be aware of the risks inherent in purchasing real estate in Honduras and should exercise extreme caution before entering into any form of commitment to invest in property, particularly in coastal areas and the Bay Islands. Honduran laws and practices regarding real estate differ substantially from those in the United States, and there are many cases of fraudulent deeds and titles. In addition, the Honduran judicial system is weak and inefficient, often prolonging disputed cases for many years before resolution. Approximately 80% of the privately-held land in the country is untitled. Americans have spent thousands of dollars in legal fees and years of frustration in trying to resolve property disputes, even in cases in which local attorneys and Honduran and U.S. real estate agents had given assurances to the investor. There have also been incidents in which violence has been used against Americans involved in disputed property cases. American citizens should investigate purchases thoroughly and take all legal measures to prevent and, if necessary, resolve property disputes. Potential investors should engage competent local legal representation before making any commitments. Investors should thoroughly check references and bona fides of attorneys and real estate agents.

The Honduran constitution contains provisions restricting or prohibiting land ownership by foreigners in coastal and border areas, notwithstanding subsequent passage by the Honduran congress of laws authorizing such ownership in certain areas and with particular restrictions. The enforcement of laws and procedures pertaining to property titles in Honduras is inconsistent. Squatters have also claimed a number of properties owned by U.S. citizens. Investors and their attorneys should thoroughly check property titles. For further information on investing in property in Honduras, please contact the U.S. Embassy's economic section. For information on contracting Honduran legal representation, please check with other investors. You may also refer to the list of attorneys available on the Embassy's homepage at http://www.usmission.hn/. In all cases, please check references and bonafides.

Financial Market Investment: Due to poor regulation and lack of guarantees, investment in the Honduran "Bolsa de Valores," or securities market, as well as banking institution bonds, fidecomisos (trusts), and certificates of deposit from uninsured financial institutions pose high risk to investors. Extreme caution should be exercised if contemplating such activities. American citizens have lost large sums of money, which cannot be recovered, through investments in such precarious markets.