20 replies to this topic

[libertythor]

Can a trust be set up through an individual instead of a banking institution?

[libertythor]

This individual is my domestic partner of 2 /2 years. We would go in together on the property. Plus, I hear the banks charge a pretty penny for the service.

[libertythor]

If anybody knows any reputable specialist in this that can give some insight I would appreciate it greatly.

No matter how much I learn or how long I live here...the obtention real estate issue is something I am never 100% sure on, due to legal complexities, title issues, charlatans, etc.

[libertythor]

Clarification: finding a place to live (renting) is far from being a problem for me..... just the purchasing end of it.

Since my credit isn´t very good, I would like to be able to purchase a piece of land or a house on the outskirts of this city...maybe a rent while purchasing option.

Anybody know of any credible setup in that department?

[jm0501]

Take a look here.
http://www.mexidata.info/id1351.html
Juan

[BajaGringo]

Here is another spot where you can look for answers to questions about obtaining a bank trust (fideicomiso) for foreigners wanting to buy property in Mexico.

http://www.bajacalif...ingProperty.htm

[Daniel]

Here is the name of a law firm in Tijuana that specializes in real estate matters. Like banks, they also do fideicomisos.

They've done work for some major companies, like Coca Cola. My dealings with Alejandro Diaz Gonzalez were positive. (He speaks some English.) You're free to say that Daniel recommended you see him. (Although it won't get you a special price; nor will I "get something" for the referral.)

Ezkauriataz, Fregoso, Vazquez & Asoc.
Mixion de San Ignacio No. 4428
Zona Rio
Tijuana, B.C. 22320
664-634-3882
664-634-3874
664-634-6125

Alejandro Diaz Gonzalez
adiagonzalez@hotmail.com

[libertythor]

How much does he charge an hour?

[Scooby]

. . .. . Since my credit isn´t very good, I would like to be able to purchase a piece of land or a house on the outskirts of this city...maybe a rent while purchasing option.

Anybody know of any credible setup in that department?

I'm sure most of us driving the tollfree road to Rosarito and other places have seen the plethora of signs announcing "lotes" for sale.
Most of them offer cheap monthly payments (abonos) and some with a low down payment (enganche).
Many, many working class Mexicans are doing this without having credit ratings.
If they fail to meet their contract agreements, I've heard they eventually risk losing the money they put into it (enganche plus abonos).
Those who want out of the contracts often try "traspasar".
This seems real common of many folks locked into those cookie cutter type housing developements (usually fraccionamientos like Sante Fe, Loma Bonita, etc).
Some of these places appear pathetically tiny (often less than 160m2), but it's all many can afford aside from forever having to pay rent.

Also, I've heard it's possible for the foreigner to buy the property under the nationals name, but the foreigner has legally all the power (including to sell it).
No fideicomiso needed then. Anybody heard of this ?

[Chiquito]

Many of the places will sell you the properties without a fideicomiso. But if you ever have any legal issues at all you will have no legal standing as owner. Also, if you buy property in the name of a Mexican national, it would be given that the named person would have legal control of it. Either of these scenarios is setting yourself up to get screwed.

Traspasar property is to sell or transfer it directly, like for sale by owner.

Under the newer laws as well, if you buy property under a corporation and the government, either on their own or by the request of another, proves it was not used in the said business, the ownership may not be legal. Renting it or investment property could be business but as your primary residence there is a bit of risk.

Don't put any serious money at stake without the help of an experienced and competent Mexican lawyer. Note also that a law degree in Mexico is like any other college degree, not a separate special degree. And there is no board to pass or special licensing for the average lawyer. They just need to have the university degree. So finding a competent one is not a given.

[spritrig]

Article 27, Rule I. of the constitution forbids foreign ownership in the exclusion zone.


http://www.bibliojur...tos/1/12/12.pdf (English Translation)

The permission for the Fideicomiso is applied for with and granted by the Secretary of Exterior Relations (SRE).

http://www.sre.gob.m...ideicomisos.htm
http://translate.goo...Flanguage_tools

Requirement ( of "PERMISSION FOR TRUST IS IN RESTRICTED ZONE" specifies a credit institution (bank) will act as trustee.

Buying using a borrowed name "presta nombre" is completely illegal. You are sure to loose money this way, maybe your life savings if you are foolish enough.

You are not really buying property. What you are paying for, Mexican or not, is a legally registered title in the Public Registry, which gives you control of the land. You won't get this without permission from the SRE.

The fideicomiso also allows a contracted nonjudicial foreclosure process.

[zunigan]

So if I am reading this right, my husband is a mexican national so we can buy and it will be in his name only? And if we want it in both then we need this bank thing you are talking about? Or can we even have it in both of our names? This is all so confusing.

[zunigan]

One other question do they do a credit check before you buy? If so here in the usa or on the Mexican national?

[bluejeans]

May I suggest that if you want to buy property in Mexico, you get real good legal council before you do anything else.

[spritrig]

Before buying, you need a good lawyer. There are lots of legal issues.

If you are married to a Mexican, you can apply for Mexican nationality. Article 20, Section II. This is a short cut to naturalization. It requires you speak Spanish, and prove you lived in the marital home for two years before the application. So, if you want your name on the title without a fideicomiso, rent for two years, naturalize, then buy together both as Mexicans.

http://www.sre.gob.m...nalidad.htm#III

http://translate.goo...Flanguage_tools

Before Mexico allowed dual nationality, children of Mexicans who had other citizenships could not inherit real property in Mexico legally, except as a trustee.

I'm an engineer. Don't listen to me. Talk to a lawyer. Since I am Mexican by birth, I will leave finding out if the Mexican nationality law requires you renounce your other citizenship as an exercise for your lawyer.

Also, Mexico distinguishes between nationality and citizenship. Dual nationals are not citizens of Mexico. They have land and voting rights though.

[zunigan]

I am not bying now just interested in how it works. Thanks

[Chiquito]

"Also, Mexico distinguishes between nationality and citizenship."

Side comment... In Mexico you can not hold about any position of authority, from police to politics, unless you are Mexican by birth. Nationalized citizens are not eligible as they would be in the US (except for Presidency and Vice Presidency).

[spritrig]

I was talking to my friend with a law education (JD) here in the U.S. about the Mexican fideicomiso, differences in property taxes, foreclosures, and upcoming stupid U.S. mortgage bailouts.

He brought up a really interesting point I never considered. When I told him the Mexican Fideicomiso requires the bank as trustee and the bank holds naked title, my friend asked, what happens if the bank goes bankrupt?

[Chiquito]

Very good question. My assumption is that you would be able to transfer it to another bank since you can pick whichever bank anyway.

[spritrig]

My friend was telling me about a friend who had a mortgage on a U.S. property from a U.S. bank which went bankrupt during foreclosure. The new owner of the mortgage could not foreclose, because the bankrupt bank lost records. So the house could not be foreclosed or sold.

I have read that the fideicomiso can be transferred in the case of a bankrupt bank. However, getting papers from from an institution requires employees. Can it be assumed a bankrupt institution will do paperwork for customers?

Until it happens, there can only be assumptions. A lot of people in the U.S. assumed they could afford their variable interest rates.