Termination of the Las Conchas Master Trust?
- Thread starter Dezracer
- Start date
El Tiburon
Guest
How long do master trusts last?
Landshark
Guest
Found this info. Interesting... The real estate fideicomiso prior to 1998 used to be for 30 yrs, so if it was established in LC in 1986 it would expire in 2 yrs. Why would one chose to renew in a master trust? For the time, money, hassle spent renewing the master why not convert to an individual trust?
A Real Estate Fideicomiso is irrevocable ownership set in 50-year increments, perpetually renewable, and is transferable. There is only one Real Estate Fideicomiso, however, and it is offered in two forms: Master Trust or Individual Trust.
Master Trust:In this type of Trust, a master umbrella Trust is formed and the individuals own a piece of the Master Trust. The Master Trust holds all the properties and makes all decisions regarding the Trust/property. It is responsible for, and pays the taxes on the entire property held within the Trust and appropriates amounts for reimbursement from the individual owners. The risk in a Master Trust is if the Trust property should incur a lien or judgement against it, what affects one affects all. Whoever controls the Master Trust holds tremendous power over it. The beneficial aspect of the Master Trust is that it is less expensive to set up and maintain.
Individual Trust : In an Individual Trust each property owner owns, maintains, and is responsible to pay taxes on their own Trust/property. It is slightly more expensive but the security of total control over your own Trust/property is worth the small additional expense.
http://www.northernbajarealestate.com/Buying_in_Mexico/page_1886210.html
http://www.bajaopenhouse.com/Fideicomiso_-_Bank_Trust/page_1922035.html
A Real Estate Fideicomiso is irrevocable ownership set in 50-year increments, perpetually renewable, and is transferable. There is only one Real Estate Fideicomiso, however, and it is offered in two forms: Master Trust or Individual Trust.
Master Trust:In this type of Trust, a master umbrella Trust is formed and the individuals own a piece of the Master Trust. The Master Trust holds all the properties and makes all decisions regarding the Trust/property. It is responsible for, and pays the taxes on the entire property held within the Trust and appropriates amounts for reimbursement from the individual owners. The risk in a Master Trust is if the Trust property should incur a lien or judgement against it, what affects one affects all. Whoever controls the Master Trust holds tremendous power over it. The beneficial aspect of the Master Trust is that it is less expensive to set up and maintain.
Individual Trust : In an Individual Trust each property owner owns, maintains, and is responsible to pay taxes on their own Trust/property. It is slightly more expensive but the security of total control over your own Trust/property is worth the small additional expense.
http://www.northernbajarealestate.com/Buying_in_Mexico/page_1886210.html
http://www.bajaopenhouse.com/Fideicomiso_-_Bank_Trust/page_1922035.html
brokenwave
Guest
I believe all the trusts in Cholla are 50 years now, they were in the process of getting issued in 1997-1998
and I was told that they are under the 50 year terms. Anyone care to confirm this.
and I was told that they are under the 50 year terms. Anyone care to confirm this.
Roberto
Guest
Expiration of the Master trust has nothing to do with the HOA. It's a bank thing and not all of the properties in Unconscious are affected, only the earlier properties. Those affected by the expiration of the Master Trust will have a choice of which bank to get the new trust from and should shop carefully as there are large differences in costs between banks right now. Yes a Notario will have to process the trust. No, you don't need a realtor but if you would like some assistance with the process Dee at Twin Dolphin Real Estate helps people with this process.