Pre-Construction
; In the trust deed, the present owner of the land would appear as the settler or
trustor (fideicomitente) and would thereby deliver title of the real estate to the
trustee who would hold the property during the life of the trust ( 50 years ).
trustor (fideicomitente) and would thereby deliver title of the real estate to the
trustee who would hold the property during the life of the trust ( 50 years ).
REAL ESTATE TRUST: A HELPING HAND TO FOREIGN INVESTORS IN MEXICO.
WHAT IS A TRUST INSTITUTION?
The buyer (you) would appear as the Beneficiary (fideicomisario) or that is the person
having the absolute use and avail of the property.
having the absolute use and avail of the property.
The legal effect of the trust deed is that the Trustee keep temporary ownership of the
real estate, in so doing it complies with laws (Article 27 of the Mexican Constitution)
that prohibit foreigners from full ownership of real estate located 50 kilometers wide
along the coastlines and 100 kilometers wide along the border areas of Mexico. This belt
of land is so-called the ;restricted zone.
real estate, in so doing it complies with laws (Article 27 of the Mexican Constitution)
that prohibit foreigners from full ownership of real estate located 50 kilometers wide
along the coastlines and 100 kilometers wide along the border areas of Mexico. This belt
of land is so-called the ;restricted zone.
b) Your name, nationality, occupation, address and phone number.
e) The agreed purchase price.
Upon obtaining the said permit the Bank shall proceed to execute and legalize the
trust deed before a Notary Public.; Notaries in Mexico have far greater legal status
and competence than those in the United States. The Notary Public is that Attorney
at Law who is authorized by the State Government to give final formality to the title
transfer process in his protocol book. The resulting document taken from this protocol
book is registered at the Public Registry of Properties, and it will give evidence of
title in the name of the buyer.
trust deed before a Notary Public.; Notaries in Mexico have far greater legal status
and competence than those in the United States. The Notary Public is that Attorney
at Law who is authorized by the State Government to give final formality to the title
transfer process in his protocol book. The resulting document taken from this protocol
book is registered at the Public Registry of Properties, and it will give evidence of
title in the name of the buyer.
WHAT RIGHTS AND OBLIGATIONS DOES THE BENEFICIARY ASSUME UPON
THE CELEBRATION OF THE TRUST DEED?
THE CELEBRATION OF THE TRUST DEED?
As the Trust Beneficiary, you, will have the use and possession of the property, that
is, you may live on the land, undertake any alterations and improvements. You also have
the capacity to instruct the Trustee on mortgaging the real estate, renting it, selling,
transferring your beneficial interests to another person or corporation, or performing
anyone of the acts that by law derive from the ownership.
is, you may live on the land, undertake any alterations and improvements. You also have
the capacity to instruct the Trustee on mortgaging the real estate, renting it, selling,
transferring your beneficial interests to another person or corporation, or performing
anyone of the acts that by law derive from the ownership.
Every year, on the anniversary date of the trust, the Bank shall mail to your address
the bill of the annual fee for keeping the property in trust. When you receive that bill,
please send us that fee, with a personal check to the order of the bank.
the bill of the annual fee for keeping the property in trust. When you receive that bill,
please send us that fee, with a personal check to the order of the bank.
You must pay the fees, taxes and expenses that arise from the purchase as well as the
formalization of the trust deed before a mexican notary public.
formalization of the trust deed before a mexican notary public.
WHAT HAPPENS IF THE BENEFICIARY SHOULD DIE DURING THE LEGAL
PERIOD OF THE TRUST?
PERIOD OF THE TRUST?
With this designation of substitute beneficiaries, your heirs will not need to follow
any probate proceeding before the mexican courts, that could take time and Attorneys
Fees. They would only have to give notice to the bank of the decease and show the death
certificate and their identifications, then the Bank will accept and register them as
the new owners (beneficiaries) of the Trust Property, without any cost.
any probate proceeding before the mexican courts, that could take time and Attorneys
Fees. They would only have to give notice to the bank of the decease and show the death
certificate and their identifications, then the Bank will accept and register them as
the new owners (beneficiaries) of the Trust Property, without any cost.
While as foreigner you cannot ever record title to land in the ;restricted zone, you
can own the beneficial interest to the trust agreement. It is, in a way, like owning
100percent of the shares of a corporation which in turn owns a farm (the corporation
does), it is for most practical purposes like ownership.
can own the beneficial interest to the trust agreement. It is, in a way, like owning
100percent of the shares of a corporation which in turn owns a farm (the corporation
does), it is for most practical purposes like ownership.
WHAT REQUIREMENTS ARE NECESSARY?
In the event that you cannot be present at the signing of the trust deed before the
notary public, you should send us a letter where you accept the terms of such trust
agreement.
notary public, you should send us a letter where you accept the terms of such trust
agreement.
If you sell the property to another foreigner, you may assign your beneficial interest
to the new purchaser. This assignment of rights must be formalized before a Mexican
Notary Public, prior the payment of the federal and local taxes and fees that arise
from the transfer of Beneficiary rights.
to the new purchaser. This assignment of rights must be formalized before a Mexican
Notary Public, prior the payment of the federal and local taxes and fees that arise
from the transfer of Beneficiary rights.
You will have the obligation to pay the duties on the land, i.e.: real estate and water
service taxes, the condominium maintenance fees, if applicable, as well as the Trustee's
annual fee.
service taxes, the condominium maintenance fees, if applicable, as well as the Trustee's
annual fee.
WHAT FEES WILL THE TRUSTEE CHARGE FOR THIS TYPE OF TRUST?
All the Trustee's fees cause the Value Added Tax (I.V.A) which is the 10 % ( ten per
cent).
cent).
Also, you will pay the cost of the permit that must be obtained from the Foreign
Affairs Ministry to acquire the property in trust, and the recording of the trust deed
at the National Registry of Foreign Investments.
Affairs Ministry to acquire the property in trust, and the recording of the trust deed
at the National Registry of Foreign Investments.
EXTERNAL AFFAIRS PERMITT: $1,100.00 us dlls PER PROPERTY
The Beneficiary has the right to appoint substitute(s) beneficiary (ies) who will
receive all the rights and obligations that arise from the trust if the beneficiary dies
during the life of the trust.
receive all the rights and obligations that arise from the trust if the beneficiary dies
during the life of the trust.
WHAT WILL HAPPEN AT THE EXPIRATION OF THE TRUST ?
Furthermore, the Foreign Affairs Ministry may authorize a new trust over real estate
transferred from one trust to another for a period up to 50 years when the
beneficiaries of the original and the new trust are different.
transferred from one trust to another for a period up to 50 years when the
beneficiaries of the original and the new trust are different.
IF YOU WISH TO OBTAIN FURTHER INFORMATION PLEASE CONTACT
REMAX AVENTURAS
REMAX AVENTURAS
The Mexican Laws permit foreigners to acquire the rights to use, enjoy and avail of
real estate located in the coastal and border areas of Mexico. Through a
trust(fideicomiso) --the only legal instrument and the most aadvantageous available--
foreigners can acquire land in Mexico for residential or touristic purposes, having the
samerights and obligations that a full ownership property gives.
real estate located in the coastal and border areas of Mexico. Through a
trust(fideicomiso) --the only legal instrument and the most aadvantageous available--
foreigners can acquire land in Mexico for residential or touristic purposes, having the
samerights and obligations that a full ownership property gives.
In Mexico, a Trust Institution is that banking institution which is authorized to open
fiduciary accounts and conduct trust operations. The Trustee (bank institution) holds
legal title to the real estate property during the term of the trust, and is also
empowered with rights and powers necessary to achieve the objectives of the
contractual agreement creating the trust.
fiduciary accounts and conduct trust operations. The Trustee (bank institution) holds
legal title to the real estate property during the term of the trust, and is also
empowered with rights and powers necessary to achieve the objectives of the
contractual agreement creating the trust.
You or the seller must provide to the Bank the following documents and information:
a) A copy of the real estate title or deed indicating the exact surface area, meets and
bounds (These documents are given by the seller).
bounds (These documents are given by the seller).
c) The name(s), nationality, address(es) and phone number of the substitute(s)
beneficiary (ies) for the case of your decease during the life of the trust.
beneficiary (ies) for the case of your decease during the life of the trust.
;Upon receiving the information and documents herein described, The Bank (the trustee)
shall proceed to apply at the Foreign Affairs Ministry (Secretaría de
RelacionesExteriores) for the permit authorizing the trust deed.
shall proceed to apply at the Foreign Affairs Ministry (Secretaría de
RelacionesExteriores) for the permit authorizing the trust deed.
The fees which the Trust Division of the Bank, the charges for this type of trust are:
A) As a trustee's acceptance charge, $500.00 U.S. Dlls (as a minimum) payable upon the
signing of the deed.
signing of the deed.
B) For handling and servicing of the trust, 1.00 % (one percent) annually (approximately)
with a minimum of US$500.00 Dlls. calculated over the net value of the property held
in trust. This fee is subject to payment in advance. **
with a minimum of US$500.00 Dlls. calculated over the net value of the property held
in trust. This fee is subject to payment in advance. **
WHAT OTHER EXPENSES MUST THE BENEFICIARY MEET UPON THE
CELEBRATION OF THE TRUST DEED?
CELEBRATION OF THE TRUST DEED?
| RECORDING OF THE FIDEICOMISO AT FOREIGN INVESTMENT: $3,600.00 PESOS |
The cost and taxes of the operation are the same as those that would be paid for a
normal title transfer from one Mexican to another.
normal title transfer from one Mexican to another.
n December 27, 1993; a Presidential decree was issued establishing the new Foreign
Investment Law (Ley de Inversion Extranjera). According to article 13 of this Law,;
the Foreign Affairs Ministry shall allow the renewal of trusts over the restricted
zones upon expiration of their term (up to 50 years)
Investment Law (Ley de Inversion Extranjera). According to article 13 of this Law,;
the Foreign Affairs Ministry shall allow the renewal of trusts over the restricted
zones upon expiration of their term (up to 50 years)
| 2007 l Home | Real Estate Listings | Real Estate Inquiry | Vacation Rentals | Property Management | Rental Reservations | Villas for Rent | Puerto Aventuras Mexico, Vacation Rentals, Condos, Villas, for rent, for sale ,Paradise Beach Sales and Rentals ,Mayan Riviera Mexico, www.puertoaventurasrentas.com Copyrights reserved Re/max Aventuras, Puerto Aventuras Mexico 2007 |
Aventuras
Puerto Aventuras Mayan Riviera Mexico
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Through a trust(fideicomiso)the only legal instrument and the most advantageous available,foreigners can acquire land in Mexico for residential or touristic purposes, having the samerights and obligations that a full ownership property gives.
In Mexico, a Trust Institution is that banking institution which is authorized to open fiduciary accounts and conduct trust operations. The Trustee (bank institution) holds legal title to the real estate property during the term of the trust.
In the trust deed, the present owner of the land would appear as the settler or trustor (fideicomitente) and would thereby deliver title of the real estate to the trustee (you)who would hold the property during the life of the trust, 50 years.
As the Trust Beneficiary, you will have the use and possession of the property, that is, you also have the capacity to instruct the Trustee on mortgaging the real estate, renting , selling,or transferring .
According to article 13 of this Law,; the Foreign Affairs Ministry shall allow the renewal of trusts over the restricted zones upon expiration of their term (up to 50 years)
Puerto Aventuras Map
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Aventuras
(011-52-984)8735029
(011-52-984)7451415
(011-52-984)7451415
