I have been asked this multiple times, can I switch banks, the reason usually is to save money or to have a functional relationship with the bank (Bancomer is too expensive and bureaucratic, Banorte is slow as a snail, HSBC is not taking any more business and is hard to reach).
Well, it is possible to switch banks by replacing your current one but it is not going to be cheap.
Continue reading Switching Trust Banks
Planning to Buy a Condo?
If you plan to buy a condominium unit in a new or recently completed complex, read this:
Negotiating a fair price, entering a fair contract, choosing the right location, the options and amenities, etc., is not nearly enough, you must have a copy of the CCR’s that will govern the complex and how the HOA will be integrated and how will it be run is also very important, so don’t neglect asking for a copy of the CCR’s and find out if the developer will be controlling the HOA and for how long, also if the developer is to have 2 or more votes per every unit compared to the 1 vote for every resident.
I often hear this from my readers:
“Our community is in the early stages of development; there are 3 dozen lived-in homes. The community is about 2 years old… I have lived here for less than two years. Our developer has appointed a board of directors consisting of three of his employees and not surprisingly maintains solid control of the community.
Continue reading Mexican Developers Rules
I know, some of you will give me that look, but chances are that 3 out of 4 people with a fideicomiso are not familiar with the terms and obligations contained in their respective trust agreement.
Common Rights specified in the trust:
- To rent the property;
- Encumber the property to guarantee obligations such as loans;
- Bequeath the trust interest;
- Assign your trust beneficiary rights.
Continue reading Rights And Obligations Contained In Your Real Estate Trust
Foreigners Cannot Directly Own Property in Mexico
As you may know, Foreigners cannot directly own property in Mexico except when they enter an agreement with the federal government to abide by the rules of the country with regards to the land they acquire, thus they may form a Mexican owned company or set up a real estate trust.
You may also know that Border and Coastal areas and the whole peninsula of Baja California are constitutionally restricted and known as zona Prohibida (forbidden zone) and that foreigners can set up a fideicomiso (real estate trusts) or may form a foreign-owned company to acquire a property.
Continue reading Legal Basis For The Acquisition Of Real Estate in Mexico By Foreigners – Baja Legal Advice
Mexican Real Estate Attorney
Buying a home is surely one of the most expensive investments a person makes and buying property in Mexico, for a foreigner, it’s not a simple process. There are a number of laws that have an impact on a real estate transaction, and just hiring a real estate agent isn’t going to cover all bases to deal with the sale, thus it is advisable to consider hiring a real estate lawyer to guide you through the legal process.
Continue reading Do you need a Mexican Real Estate Attorney?
Do You Want to Buy Ejido Land?
Since I have been asked this many times, I hereby submit for your benefit, a detailed description of the process required by law to privatize Ejido Land, pursuant to the Mexican Agrarian Law.
The process consists of four stages, which are the following:.- The whole Ejido community must be current with their respective plot rights. To do this they must have performed, previously, a meeting to establish individual metes and bounds (article 56 of the Agrarian Law).
Continue reading Buying a Ejido Land – Baja Legal Advice
What is the Best Option for you to Buy Property within the Restricted Zones of Mexico?
Keep in mind that every fideicomiso needs a federal permit to create the trust, when the information is submitted and it mentions that the property is equal or larger than 2,000 square meters, the permit includes, among other conditions, the obligation for Bank and notary to insert a clause within the trust contract, obligating the trust beneficiary owners to invest at least US $250 K within 24 months after the creating of the trustor forfeit the property to the Mexican government, thus, the option is to create a foreign-owned Mexican corporation which once in operation may acquire property (which becomes a company asset) thus, avoiding the trust and the condition to make such a sizable investment, (keep in mind that this amount increases based on a chart that you can find here in Baja Legal Advice in the article discussing this).
Continue reading The Restricted Zones Of Mexico
Beware, most notarios differ in their perspective of things and conditions required by law, more so when it comes to address the fact that they be held responsible for unpaid taxes, thus the younger notarios are bound to ask more conditions than usually required by law, so be prepared, they can demand additional conditions at the worst possible time, screw up a real estate deal and not feel any remorse for leaving things for last.
Be aware that some notarios have begun to refuse CFE receipts as proof of residence/expense and are having you go back to CFE to obtain a factura with a CFDI, now CFE is refusing to grant facturas alleging that the receipt obtained by the consumer is an invoice, notarios insist that no, they must issue a specific factura instead.
Attorney at Law / Licensed Exclusively in Mexico
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Talking About Old Trusts
When the Mexican government grants a permit for a bank to create a fideicomiso on behalf of a foreign national, it instructs both the bank and the Notario to includes a number of obligations that are included within the clauses of the fideicomiso, while granting a 50 year term for the trust beneficiary owners (renewable) to use and enjoy the property held under trust.
Continue reading Why Do Mexican Real Estate Trusts Expire and What To Do About It – Baja Legal Advice
Mexico’s Beaches Are Known As “Federal Maritime Zone”
Thus if you are planning to buy property on the beach in Mexico then you must fully understand what the Federal Maritime Zone is.
The Federal Maritime Zone, per law, is described as a 20-meter wide strip of land that is transitable and next to the beach (playa mar)”. Let’s break this down to make sure we are clear on what we are talking about:
1.- The Federal Maritime Zone is 20 meters wide. There are several types of Federal Zone. This article is only making reference to the Federal MARITIME Zone.
2.- It must be “transitable” land, that I, it must be possible to cross. More on this below.
3.- It is measured from what the law considers a “beach”.
Continue reading Mexico’s Federal Maritime Zone – Baja Legal Advice