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When a Mexican foreigner is wishing to invest or purchase waterfront property in Mexico, he has two options on how he plans to hold onto the asset; either by establishing a Mexican Corporation or by establishing a Mexico Bank Trust. This article will explain some tips on what to review in a Mexico Bank Trust. There are several articles about the Mexico Bank Trust “Fideicomiso” and how Mexican foreigners can acquire Mexican oceanfront real estate. This article will explain some tips on what to review in a Mexico Bank Trust. If you are not familiar with the Mexican Bank Trust, refer to my site for an in depth introduction of “The Fideicomiso” (http://www.topmexicorealestate.com/blog/2008/09/03/how-to-buy-property-in-mexico-the-mexico-bank-trust-part-ii/ ). When a Mexican foreigner is wishing to invest or purchase waterfront property in Mexico, he has two options on how he plans to hold onto the asset; either by establishing a Mexican Corporation or by establishing a Mexico Bank Trust. If you choose the Bank Trust here are some tips: 1) Study, review, and learn a little more of the bank you choose as the holder of the Bank Trust. What is the name of the bank and is it in the “Asociacion de Bancos de Mexico”? (http://www.abm.org.mx/). Do they have offices or a branch in the Mexican town where you plan to purchase your property? For various reasons you will need to be in contact with your bank for payment of annual fees, for questions or interviews, notifications and having the bank in the same city is quite convenient for any of these unplanned visits. 2) If you purchase property within a condominium regimen, review and ensure that the deed establishes that you the beneficiary will have the power to vote at the condominium assemblies. This subject is quite important and many times it may even slip pass the lawyers when they prepare your Mexico purchase sales contracts. When you are buying a property through a Bank Trust, and such property is part of a condominium association, the voting rights need to be established and identified. By Mexican law the domain of the property remains with the financial institution, and you the Mexican foreigner have the beneficiary rights. The bank therefore is the legal representative of the property. In such case, meetings and voting rights at the condominium association should be realized by the Bank. In order to resolve this legal conflict, the deed or the purchase sales contract should include a simple clause establishing that such voting rights are to remain with the beneficiary. For those of you who have already purchased your Mexico property, and have a deed that does not state this clause, you should visit with your bank and ask them to prepare legal documentation to forward these rights to you the beneficiary. Such documentation will need to be signed and notarized before a Mexico notary public. It can also be quite common that this clause does not exist, and the non-Mexican property owner has been attending condominium association meetings and voting without any problems. There may not be any harm if the issues that have been voted upon involve minor issues that do not require legal actions. But if your vote is determining major decisions such as “taking legal action to collect past condominium fees” your vote can be null if the clause mentioned above does not exist upon your purchase sales contract. 3) Before choosing a bank to act as your Trust, study if the bank has any package deals that might include insurance, bank trust services, and other services offered. There are some banks such as the Spanish bank, Bancomer that can help you with an entire package: Loan, bank trust, closing services and regular assistance on setting up your Mexican Checking or Savings account. In package deals, discounts might be obtainable. And of course, dealing with one institution one representative to administer various services might be convenient for your needs. 4) Finally, don’t forget to review and compare set up fees and annual service fees that the bank will charge for holding your trust. If you don’t need a full package, then ask your lawyer if he can get a better rate with a particular bank; sometimes for the volume of clients the lawyer sends to the bank he can obtain special discounts that you as an individual would not qualify. These small discounts add up. There are many details surrounding the theme of Bank Trusts and their contracts, so please feel free to contact me if you have any further questions.
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Mexico Real Estate, Mexico for Sale, Mexico Homes for Sale, Fideicomiso, Mexican Trust, How to buy Real Estate in Mexico,
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