Article
The history of Mexican land
Unless we know the history of the Mexico, we would not understand why the Mexicans value their land so much. In 1517, when Hernandez de Cordoba sailed from Spain to the Yucatan Peninsula, foreigners laid claim to Mexican lands. Spain decided that since they had landed here, it was now theirs. It was not until 1822 that Mexico declared its independence from Spain. The new constitution imposed new laws and restrictions on foreign ownership and ownership of lands by the Catholic Church. Article 27 of the constitution allows Mexican Nationals and Mexican Companies to own property; however, it restricts foreigners from owning land with the restricted zone. This restricted zone defined as property within 60 miles from any Mexican border or within 30 miles of any Mexican coastline. It was in 1930's that the Mexican people saw the property return to them by President Lazar Cardenas who disassembled the large property holding and distributed them in the form of cooperative farms or . The people got the ownership of these properties and had the right to do farming there and cultivate them and receive the profit from their efforts. After nearly 4000 years, over 50 million acres of land was back in the hands of the Mexican people, however, although owned by the Federal Government. Even though the people had the right to farm the properties and profit from their work, it was not until 1992 that they had the right to sell the properties. Today things have changed, thousands of acres sell on a daily basis from the Elides, added to the public lands. There are well over 50 million acres of land that will go through this process of either leased or sold over the coming years.
In 1994, amendments to the Constitution permitted foreigners to purchase Mexico condominiums and own real estate in Mexico located within the restricted zone which is all land within 60 miles of a national border and within 30 miles of the Mexican Coast. This Law permitted ownership through a land trust or Fideicomiso The way it works is the Mexican Government issues a permit to a Mexican Bank of your choice, allowing the bank to act as purchaser for the property. The bank acts as the Trustee for the Trust and you are the Beneficiary of the Trust. The Beneficiary rights are very similar to Living Wills or Estate Trusts in the U.S. The law authorizes Mexican-banking institutions to act as trustees. A trustee takes instructions only from the beneficiary of the trust .The beneficiary has the right to use, occupy and possess the property, including the right to build Mexico condominium on it or otherwise improve it. The beneficiary may also sell the rights and instruct the trustee to transfer title to a qualified owner. Many people refer to the trust arrangement in Mexico as a lease agreement this is not true. You have all the rights that an owner of property in the U.S. or Canada has, including the right to enjoy the Mexico condo property, sell the property, rent the property, improve the property, etc. The initial term of the trust is 50 years. An investor can renew the trust for an additional period of 50 years within the last year of each 50-year period, and continue indefinitely, providing for long-term control of the asset. The purchase procedure of Mexico condominium property will be similar to transactions in the United States. Documentation and title insurance will be available on all properties we sell.
Mexico offers the foreign investor an attractive investment opportunity in an economy that is undergoing dramatic improvement and growth. Under the new regulations, foreign investor's can now own up to 100 percent of a large number of enterprises, including hotel companies, Mexico condo real estate development companies, etc. without prior authorization from the Foreign Investment Commission. Thus, foreign investors in these enterprises are on equal footing with local investors and are no longer required to engage a Mexican investment partner. The liberalization of the foreign investment rules is a clear indication of the very favorable attitude the government has taken towards foreign investment. The combination of a rapidly improving economy and stable profitable base foretell and excellent ongoing investment environment. The Mexican government has stated that it aims to double the number of foreign tourist arrivals into Mexico, representing foreign exchange revenue of $5 billion plus annually. A key to achieving the government's goal of ten million visitors a year is to develop new tourist destinations and Mexico condominiums with modern facilities and infrastructure. The Los Caboose region is a priority area for this targeted growth.
Source-http://www.snellrealestate.com/owning-in-mexico/index.cfm
