What is Voucher Control and why do I want it?

We get a lot of people asking about Voucher control so we decided to write something that might make it easier to understand.

In Mexico almost all the developers will be building with the buyer’s money via an escrow account. If there is no voucher control, there are few, if any restrictions on how the developer can use that money. Even the best escrow account is only as secure as the agreement between the buyer and the seller as to the instructions on how the money is released.

With voucher control, the money is completely controlled by the Voucher Control Company, usually from California. This means that money is released only to the service allocated.  When the plumber completes his work, he is paid by the voucher controller, when the electrician is finished he is paid by the voucher controller. This is done when the work is approved and the invoice is verified. What this means for the buyer is that the deposit money can not be spent on anything other than verified invoices from licensed contractors. It has always been a problem in Mexico when the developer has access to the buyer’s money unconditionally and at the end of the development there could be unpaid contractors who will place a lien on the building or work is paid for without invoices and no trace of the contractor remains.

This is a mandatory service in the U.S. and should be here. Baja Relocation always considers developments with voucher control to be superior to those without it.