Rocky Point Talk archive

Influential lawmaker proposes ending Mexico's ban on foreigners owning land on coasts

Started by Terry C · Apr 23, 2013 · 22 replies
Terry C
This has not been brought up in the news in a long time. I have never heard of this guy.

Influential lawmaker proposes ending Mexico's ban on foreigners owning land on coasts, borders | Fox News
jerry
The Swiss let foriegn devils buy one vacation house .....it has been great for the bottom line.
mexicoruss
Terry C said:
This has not been brought up in the news in a long time. I have never heard of this guy.

Influential lawmaker proposes ending Mexico's ban on foreigners owning land on coasts, borders | Fox News



When I was doing RV tours many years ago Manlio was the Mayor of San Carlos/Guaymas, as a matter of fact the blvd that takes you to San Carlos from Highway 15 is named after him
Roberto
This was brought up a few years ago as well. It went no where. The Fidiecomiso means a lot of money to the banks for doing basically nothing , not to mention the Notarios and Abogados involved in the processing business. As I understand it, also it would require a constitutional amendment, not easy to get even with good representation. US folk have no representation in Mex. govt and the forces against this change are large. Guess is it won't happen.
InkaRoads
Well it is closer to be a reality than not, need to be passed the senate, overwhelming majority voted for it to take place, it is closer than most think!!

Reforms to Bank Trust law should have tremendous impact for Rocky Point | Rocky Point 360
jerry
The NG and oil men plan on exporting our oil and gas to Mexico plus build refineries and petrochemical plants.They need to be protected.This may be a slight of hand trick.
mis2810
Add immigration reform and mix well.
Roberto
Beltrones’s proposal has to be passed by both the Chamber of Deputies and the Senate, then approved by 17 state legislatures before it becomes law.
Jim
I just asked our company attorney and he informed me that it has actually been approved and there will be a change to the constitution. There are, however, some stipulations that will make it not as user friendly as it sounds. For someone who wants to the property for personal use only, it will work. But, for most of my clients who want to rent their condos when they aren't using them it will not work The law will explicitly state that the property can not be used to produce income. If they find out that you are making an income, they will have the right to confiscate the property. The other difference between the bank trust and direct title is that in a trust, you can name beneficiaries in case of your death. In private title that is not possible and your heirs have to go to court to get title. That holds true with Mexican Citizens as well. Usually, that isn't a problem but sometimes when surviving heirs don't get along it could become more time consuming and problematic, and possibly more expensive if an attorney is needed. Another misconception about private title is that is is free or very cheap to register. True, it is cheaper than a bank trust and there are no annual fees, but it is still fairly expensive. There will still be the 2% transfer tax, notario fees, etc. So, in my opinion, it is a great thing for a lot of people but for me, probably only about 20% of my Buyers will even consider taking advantage of it. I hold my property (other than my personal residence - that's in my wife's name) in a Mexican Corporation owned by myself and my wife. It gives me benefit of direct title, plus if I die, she will automatically get the corporation. That too has positives and negatives though, and that is just the opposite from the new law. All property held in a Mexican Corporation must be used only for investment or income. No personal residence or vacation property qualifies. Hope this helps a little. Jim @ Sonoran Resorts
El Gato
Jim said:
I just asked our company attorney and he informed me that it has actually been approved and there will be a change to the constitution. There are, however, some stipulations that will make it not as user friendly as it sounds. For someone who wants to the property for personal use only, it will work. But, for most of my clients who want to rent their condos when they aren't using them it will not work The law will explicitly state that the property can not be used to produce income. If they find out that you are making an income, they will have the right to confiscate the property. The other difference between the bank trust and direct title is that in a trust, you can name beneficiaries in case of your death. In private title that is not possible and your heirs have to go to court to get title. That holds true with Mexican Citizens as well. Usually, that isn't a problem but sometimes when surviving heirs don't get along it could become more time consuming and problematic, and possibly more expensive if an attorney is needed. Another misconception about private title is that is is free or very cheap to register. True, it is cheaper than a bank trust and there are no annual fees, but it is still fairly expensive. There will still be the 2% transfer tax, notario fees, etc. So, in my opinion, it is a great thing for a lot of people but for me, probably only about 20% of my Buyers will even consider taking advantage of it. I hold my property (other than my personal residence - that's in my wife's name) in a Mexican Corporation owned by myself and my wife. It gives me benefit of direct title, plus if I die, she will automatically get the corporation. That too has positives and negatives though, and that is just the opposite from the new law. All property held in a Mexican Corporation must be used only for investment or income. No personal residence or vacation property qualifies. Hope this helps a little. Jim @ Sonoran Resorts


Jim, thank you for all the information. It is appreciated.
Terry C
Can you leave it a bank trust if used for personal only?
Jim
Terry, yes you can. Even some Mexican Citizens use the bank trust system because it does have certain advantages.
Terry C
Thanks Jim, depending on the value, a 250K home could cost upward of $ 8,000.00 to transfer. It would take a long time to re-coop the $ 550.00 yearly bank trust fee.
mis2810
Jim said:
I just asked our company attorney and he informed me that it has actually been approved and there will be a change to the constitution. There are, however, some stipulations that will make it not as user friendly as it sounds. For someone who wants to the property for personal use only, it will work. But, for most of my clients who want to rent their condos when they aren't using them it will not work The law will explicitly state that the property can not be used to produce income. If they find out that you are making an income, they will have the right to confiscate the property. The other difference between the bank trust and direct title is that in a trust, you can name beneficiaries in case of your death. In private title that is not possible and your heirs have to go to court to get title. That holds true with Mexican Citizens as well. Usually, that isn't a problem but sometimes when surviving heirs don't get along it could become more time consuming and problematic, and possibly more expensive if an attorney is needed. Another misconception about private title is that is is free or very cheap to register. True, it is cheaper than a bank trust and there are no annual fees, but it is still fairly expensive. There will still be the 2% transfer tax, notario fees, etc. So, in my opinion, it is a great thing for a lot of people but for me, probably only about 20% of my Buyers will even consider taking advantage of it. I hold my property (other than my personal residence - that's in my wife's name) in a Mexican Corporation owned by myself and my wife. It gives me benefit of direct title, plus if I die, she will automatically get the corporation. That too has positives and negatives though, and that is just the opposite from the new law. All property held in a Mexican Corporation must be used only for investment or income. No personal residence or vacation property qualifies. Hope this helps a little. Jim @ Sonoran Resorts
I thought it had only been voted on by the Chamber of Deputies, and still had to go to the Senate.
Jim
I'm just the messenger but he is is very up on all things political and I believe him.
Jim
Story in Rocky Point 360: Reforms to Bank Trust law should have tremendous impact for Rocky Point | Rocky Point 360
Roberto
Very odd that it passed both legistlative houses and 17 States with no public announcements ?? That is assuming the info about how the constitution is changed is correct. I'm pretty sure it is a restriction in the Mexican Constitution.
Roberto
Below from the RP 360 article:

**Important to note: Currently, bank trust law is still in effect as this measure still has to be approved by the Senate and then passed by States in order to change article within Constitution: “The measure, which passed 356-119 in the Chamber of Deputies, still needs approval from the Senate and a majority of the country’s 32 state legislatures to become law.”
mis2810
Roberto said:
Below from the RP 360 article:

**Important to note: Currently, bank trust law is still in effect as this measure still has to be approved by the Senate and then passed by States in order to change article within Constitution: “The measure, which passed 356-119 in the Chamber of Deputies, still needs approval from the Senate and a majority of the country’s 32 state legislatures to become law.”


That's what I read this morning in a different article. I didn't think it had passed everything it needs to yet.
jerry
Wonder how fractional owners would deal with this? Renting is over rated,people blow up bowls of chili in your microwave and get all cranky with you for little stuff like cheap toilet paper... I hope it happens
Jim
I could be wrong. Just repeating what he told me this morning...
mis2810
Jim said:
I could be wrong. Just repeating what he told me this morning...


He's wrong, at least for now.
garyd
I hope it passes as it may be a good thing for some people and it is always nice to have options. As for me I like the bank trust because of the way it passes from one person to another upon death. A lot of people set up Family Trusts in the US for that same reason.