Q&A About the Fideicomiso in Mexico

Posted by Mexlaw

There are two options for foreigners who want to purchase Mexican property within the restricted zone (100 km of any national border and within 50 km from the coast) either through a Mexican corporation or by obtaining a fideicomiso. The fideicomiso is a trust held by the bank, which provides the buyer with all the benefits of direct ownership. Is the fideicomiso a lease? No, although the term of the trust is 50-year increments, it can be renewed indefinitely. Should I choose one of the larger banks to set up my fideicomiso? No, not necessarily. Since the fideicomiso is not a big part of their...

04 December

0 Comments

Sticky

Rent to Own – A Transaction Agreement

Posted by Mexlaw

in Legal Services, MexLaw, Real Estate

If you are selling your property in Mexico, you may get an excellent offer from a buyer looking for a rent to own situation. The potential buyer may want to live on the property while making substantial payments. How do you protect your investment and not waste time and money if the buyer defaults? You will need to take extra precautions to protect your interests. We recommend you hire a Mexican lawyer to draw up or at least review any legal agreement you make to ensure you and your investments are fully protected. What type of agreement will protect the potential buyer...

09 May

0 Comments

Sticky

5 Points to Consider Before Investing in a Mexican Development

Posted by Mexlaw

in MexLaw, Real Estate

Purchasing a condominium in Mexico is an exciting venture, and there are plenty of new buildings on the market. Before handing over your money consider these 5 points and as always we remind our readers to hire a lawyer licensed in Mexico to review the sales agreement and carry out due diligence on the property. Can you trust the developer? What is the business model and are their other projects successful? Check out the developer's reputation and experience before you invest. Does the property have a business model that guarantees long-term appreciation? Who is the administrator and what is their...

02 February

0 Comments

Sticky

Recognizing a Timeshare Resale Scam in Mexico

Posted by Mexlaw

in Legal Services, MexLaw

Mexico’s weather, beaches and lower living expenses have captivated many vacationers. In addition, the dream of owning a second home in paradise makes visitors easy targets for timeshare sales agents. Before they know it, they are swept away by the possibilities and wind up signing on the dotted line and purchasing a timeshare in Mexico. Once the excitement wears off some buyers may have regrets. Luckily there is a small safety net in Mexico - a five-business-day grace period in which to cancel a timeshare contract (despite what the salesperson tells you). However, if the grace period has passed by the...

24 October

0 Comments

Sticky

The Law of Hidden Defects in Mexico

Posted by Mexlaw

in Legal Services, MexLaw, Real Estate

Hidden defects are an important point in the process of purchasing a property in Mexico. The definition of hidden defects is those possible defects that a property may have, which could not be known to the buyer at the time of purchase. A defect is classified as a "hidden defect" if: It is not obvious and cannot be recognized by a simple inspection. The buyer is unaware of the defect. The property was defective at the time of the sale. The seller is responsible for a hidden defect even if they were unaware of the defect. The seller will be obliged to repair...