Well Known Member
Have not heard of that. I have heard that Mexico is interested in somehow restricting LLC activity in real estate as they miss out on taxes and banks don't make the big bucks issuing a Fidecomisso. I checked the ICRESON , (the state of Sonora agency governing real estate) website and there is a description of ICRESON's legal responsibilities but no mention of this.The trust must be apprised (via legal documentation by notario) of any changes in the LLC ownership / members.
It is a bit of a legal sticky wicket, as what you buy when a property is held in an LLC is the STOCK of the LLC, the property is owned by the LLC and not an individual person. Officers of the LLC are named in and control the LLC. Mexican's sticking their nose into the sale of stock in a US corporation would raise some eyebrows here. where does that stop?? Appears that Mexico would have to prohibt, by law, a Us corporation from owning anything in Mexico.
The LLC is totally a US thing, not designed to particularly hold a Bank Trust, and the corporation is used for many reasons. Protection from personal bankruptcy is one. The name of the LLC of course appears on the Fidecomisso as the beneficiary. . There is documentation creating and defining any US LLC that will indicate what is held in the LLC and who holds the stock of the corporation but that information does not appear in the Fidicomisso held by an LLC. That documentation should be in the possession of the individuals named as stock holders of the LLC. Changes in the ownership and contents of an LLC is a relatively simple matter, accomplished through an attorney in the US, not in Mexico. Face to face appearance for transfer of stock in an LLC is not even required, only certified signatures. I a sure it is registered in the US by an attorney there. If there is a requirement that a Mexican notorio or agobado must be notified, it is, as far as I have seen, not enforced at all. The Mexican banks that hold and issue the trusts are not notified of any changes in ownership of LLC stock.
As always the Notario is the final word on these matters. Please do not take my word on this as I am not an attorney and it is based on only my experiences. Check with a Notario. It's the only way to go!! (Great Slogan !!) And a US attorney. That slogan should be prominent in every real estate office in Mexico !!
I am hearing about a possible upcoming disaster of similar proportions and causes to past real estate rip offs. Sincerely hope it is all rumor .