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
