Process of buying real estate in puerto Penasco

Roberto

Well Known Member
The trust must be apprised (via legal documentation by notario) of any changes in the LLC ownership / members.
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.

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 .
 
Last edited:

Landshark

Well Known Member
The trust must be apprised (via legal documentation by notario) of any changes in the LLC ownership / members.
We are in the process of doing this now under direction and assistance of our attorney. While our Fidecomisso is still in place, it is currently in a non-compliant status requiring updated LLC member information. Until it is updated and compliant, the property or shares of membership in the property can’t be sold through the Mexican real estate process.
 

joanC

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.

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 .
 

joanC

Well Known Member
It's unfortunate this particular forum does not have anyone who has actually owned any property, or has real experience with LLC's and Bank Trusts. Hopefully some member on this forum can step up and give us reliable info...we all need dependable sources on a subject so important.
 

Roberto

Well Known Member
Why do you say that??? I have owned several properties and sold many more and I am not the only one. I think most of the members own real estate and most understand what a Bank Trust is and how to get one. I have had experience with LLCs and Fidiecomissos. Are you suggesting I am passing along unreliable information?? Would you prefer that I just can it? My information is based on many personal experiences over the years in formal actual real estate sales and interactions with Notorios, that ended successfully in either a title or a fidiecomisso. Some things may have changed but I always say talk to a Notario as that's the only place you will get reliable, accurate information.
 

Landshark

Well Known Member
For those with HSBC trusts...
We have had problems in the past communicating with HSBC to pay or modify out bank trust. Our attorney Louis was able to contact them and we received an invoice! They also indicated we needed to update our info and sent us a list of requirements. After all the horror stories it’s good to finally know all is good.
 

Roberto

Well Known Member
For those with HSBC trusts...
We have had problems in the past communicating with HSBC to pay or modify out bank trust. Our attorney Louis was able to contact them and we received an invoice! They also indicated we needed to update our info and sent us a list of requirements. After all the horror stories it’s good to finally know all is good.
Nice to get some good news.
 

Kiter

Active Member
Landshark - can you share a contact at HSBC. I must have made a half dozen phone calls last year, and most new nothing about title held in trust in Mexico. I finally sent in the check and watched for it to come back and properly endorsed. We recently did the same this year.
 

Landshark

Well Known Member
Landshark - can you share a contact at HSBC. I must have made a half dozen phone calls last year, and most new nothing about title held in trust in Mexico. I finally sent in the check and watched for it to come back and properly endorsed. We recently did the same this year.
We received an invoice but there isn’t a phone number on it. Only info regarding our trust, amount due, who to make the check payable to and where to mail it.
4730F1E0-A0B9-48FC-A32E-D48FC911F842.jpeg
 

brokenwave

Well Known Member
That looks like a nightmare.
After dealing with BBVA Bancomer about being behind for our trust payments, discovered they're awful to deal with as well as well.
BBVA told us, It isn't their responsibly to notify you if you're not paying the correct amount for your Trust payment.
(numerous requests were made for statements from them)
Oh and they get to charge you 2% per month late fee's on any under funded Bank Trust.
BBVA Bancomer is owned by a Argentinean Bank group which is owned by a Spanish Bank group.
 

Kiter

Active Member
In the past we've had someone pay our property taxes. I'm hoping to do this on Monday. I'm pretty sure I know the building I need to go to, what do I need to bring with me and my Spanish is pretty poor.
 

ultraron

Member
Forum Supporter
if you have a past copy of your taxes is what I do ,then go to the last window on the right and they will print you a copy of the taxes due.Then go to the left side of the room to pay. Never have had a problem.
 

brokenwave

Well Known Member
if you have a past copy of your taxes is what I do ,then go to the last window on the right and they will print you a copy of the taxes due.Then go to the left side of the room to pay. Never have had a problem.
As Ultraron said, super easy, as you go into the building there is a ticket machine they don't really use anymore.
A lady near the machine will look at your paperwork and point you to the line to wait in (2 weeks ago it was line 5 and 6) they will look up
your 2020 taxes at the window and calculate the discount for paying early (15% for Feb) hand you the paper work and tell you to go stand in line 1 or 2 to pay.
Pay in Peso's because the city was giving I think 16 to 1 to the dollar and you can get approx. 18.5 from most ATM's around town.
 

kahunito

Member
Forum Supporter
We have an accepted offer on a property in PP through remax. Have already wired the earnest money to Secure title Latin America whos account is at citi bank in the US. Secure Title seems to check out. any one else have any experience with them? The property we bought years ago was thruogh Stewart Title Latin america and everything worked out fine. Also wondering why Remax has changed who they use.
 
Top