|
Fideicomiso (Trust Agreement): |
The
trust agreement is created for the benefit
of a foreign buyer, executed between a
Mexican bank and the seller of property in
the restricted zone. Since foreign buyers do
not have the capacity to enter into a normal
real estate sales contract, due to
Constitutional restrictions, the bank acts
on their behalf. The bank, as trustee, buys
the property for the foreigner and has a
fiduciary obligation to follow instructions
given by the beneficiary. The beneficiary of
the trust retains and enjoys all the rights
of ownership while the bank holds title to
the property. The foreigner is the
beneficiary of the trust and is entitled to
use, enjoy and, if he or she should decide
to, sell the property held in trust at its
market value to any eligible buyer. |
|
SRE Permit: |
Secretary for External Relations permit.
This is a required permit as you are
purchasing a home in Mexico. |
|
RNIE Registration: |
Registration for Foreign National Investors
permit. This is a required registration to
purchase a property in Mexico. |
|
Forma Migratoria (Official Residence
Permit): |
The ID issued by the INM for foreign
residents. Various types of FM's are used
depending on the length of the applicant’s
presence or status in Mexico. For the
purpose of this financing you will in most
cases need an FM3.
(See Attachment #1). |
|
Notario (Notary): |
A Mexican "Notario" is an official who has
been trained and licensed as a lawyer and
then, after passing rigorous examinations,
commissioned as a public notary. A notary
holds high office for life unless he is
removed for cause. The Notario fulfills a
public function delegated by the government.
Although licensed as an attorney, the
Notario is not in a position to provide
either of the parties with legal advice. The
Notario drafts documents, verifies the facts
therein and records the documents with the
public registry. The Notario's fee generally
ranges between 1% and 2% of the value of the
asset. |
|
Escriura (Title): |
The title on the property will need to be
provided by the seller at the time the loan
is closed. If the title is held in a bank
trust by the seller, they must fill out a
form to cancel the bank trust and release
the title. |
|
Boleta de cuenta de Agua Individual
(Water Bill): |
A copy of a water bill by the seller must be
provided before the loan can be approved.
The seller must bring the original water
bill to closing and give to the Notario. |
|
Evaluacion / Avaluo (Appraisal): |
When taking out a home loan in Mexico two
appraisals must be ordered. The first is to
determine the value for the purchase of the
property. The second appraisal is called a
"Catastral" or Tax Appraisal which is to
determine value for tax purposes. |
|
Libertad de Gravamen (Freedom of Liens): |
The regional Notario will issue a freedom of
liens to insure clear title. |
|
Federal Zone: |
The federal maritime land zone ("la zona
federal maritimo terrestre") consists of the
first twenty meters of beach-front property.
The twenty-meter distance is measured from
the high tide line or from the first point
above that line where the slope is no more
than 30 degrees. Within the federal zone,
the government controls water rights and
limits vehicles, certain activities and the
construction of improvements that could
endanger people using the beaches, interfere
with free passage or cause pollution. The
federal zone is intended to remain public
land and to be enjoyed by everyone; however,
the Mexican constitution allows the
government to grant "concessions" for use of
the federal zone. |
