Hola Amigos y Clientes:

 I’m back with renewed energies, hoping that I will be able to publish more USEFUL articles than in the past which were very busy years for me.

During my last visit in San Diego, California I ran across an article in the San Diego Union tribune News paper. It talked about bad land deals in Baja California Norte and the mistake that people often do by placing faith in the US real estate franchises that operate in Mexico. In the years that we have been in business we have always made it a practice of advising our clients on the necessity of hiring a knowledgeable lawyer or agent before buying real estate property in Mexico.

I personally was involved in the real estate business for a couple of years, but finally decided to quit due to the lack of loyalty and honesty of some sellers and buyers and to the cut throat practices of some real estate agents (and frequently non agents) – Don’t get me wrong; there are some honest real estate people out there doing business in Mexico.

We are now offering our legal representation and assistance to buyers; rarely do we work with the sellers.

 If you ask me if it is safe investing in property in Mexico, I would say YES, but you must take some precautions as in every case, such as:

1. Title search
2. Escrow accounts (if possible)
3. Keep in mind that there is really no escrow companies such as there is in the States.
4. Preferably, Assistance of a lawyer specialized in real estate transactions.
5. Purchasing title insurance (if possible)
6. Make sure you understand the terms of the transaction and the Fideicomiso contract before you sign any document. (ASK QUESTIONS!).

 And remember, each country has its particularities when it comes to real estate transactions. For instance, Mexico does not require a certification for Realtors as it happens in the US. There is no clear regulation of escrow accounts in Mexico either.

 Moral of the story is;

     IF you are getting ready to spend a big chunk of money buying property, spend a little bit of money hiring a competent and honest lawyer who can save you a big head ache.

 Here is link to Diego Union tribune News paper.

http://www.signonsandiego.com/news/2011/sep/25/baja-land-deals-end-lawsuits/

 All your comments and suggestions are welcome; we love to hear from you!

 Sincerely,

ALBA WALKER AND THE PAPER CHASE TEAM

No tags Hide

HOLA AMIGOS Y CLIENTES,
MOST OF YOU ARE ALREADY ENJOYING OUR WONDERFUL WEATHER IN B.C.S, OR YOU ARE ON YOUR WAY.
I AM SURE A LOT OF YOU HAVE HEARD THE NEWS ON MIGRATORY FORMS (FM2, FM3, ETC) FOR 2010; THE NEW PLASTIC FM3, THE REGULATIONS CHANGES, THE INTERNET APPLICATION…

BUT DO YOU KNOW WHAT IT IS MORE CONVENIENT FOR YOU? DO YOU NEED AN FM3, FM2 OR TOURIST VISA?
MOST OF OUR CLIENTS HAVE FM3S SO IN ORDER TO MAKE IT EASY FOR YOU TO ANSWER THE QUESTION HERE IS SOME INFO:

ANNUALLY WORKING FM3 MEXICO VISA FORM
FM3 is a Non Immigrant  Mexico Visa Form  that allows foreigners to work legally in Mexico and is valid for 365 days, which can be extended every year. 

Who needs a working FM3 Mexico Visa?

1. Foreigners that   work  permanently in Mexico.
2. Foreigners that own a Mexican coporation or are shareholders.

 
ANNUALLY RESIDENCY FM3  VISA  

Residency FM3 is a Non Immigrant Mexico Visa Form valid for 365 days that allows foreigners to
reside in Mexico for more then six months and can be extended every year.
A residency  FM3 can be granted to any foreigner that  can prove legal   income of $1, 100.00 US, per
month brought from abroad he/she qualifies  for this visa.
Who needs a residency FM3?

1. Foreigners that   reside in  Mexico  for more than  six months.
2. Foreigners that own  property in Mexico through a Mexican bank trust.
3. Foreigners that want to be protected in case of legal issues, while in Mexico.
4. Foreigners that want to have a Mexican driver license.
5. Foreigners that want to have a  U.S.  Vehicle   in Mexico.
6. Foreigners  that want to change from FM3 to FM2 status (in most cases). 
7. Foreigners that want to have a Mexican Bank account (most banks requirement).
8. Foreigners that want to bring their household in to Mexico  duty free.
9. Foreigners that want to sell or lease their property in Mexico.

2010  CHANGES:

1. If you already hold an Fm3, you will get a new “plastic card” to substitute your green book.
2. You can have a representative do the renewal process, but your precesence to pick up the plastic fm3 is mandatory.
3. Fm3s can no longer be used as proof of residence to apply for Mexican citizenship.

SUGGESTIONS:

1. If you cannot be in Mexico to pick up your document you may have to cancel altogheter as you must sign paper every year.
2. If  the only reason you hold an Fm3 is because you have in mind to apply for citizenship after 5 years, this is no longer possible so perhaps you should consider canceling the document.

HOPE YOU FIND THIS USEFUL.

SALUDOS!

THE PAPER CHASE TEAM

fideicomiso fiscal mexico advice, service, tourism Hide

For more details call us.

Best to all from the Paper Chase team.

baja california sur, bcs, discount, municipality, taxes Hide

DEAR PAPER CHASE CLIENTS:

I THOUGHT IT WOULD BE GOOD IDEA TO CLARIFY A “COMPLICATED” MATTER WITH EJIDO LAND.

FACTS:

EJIDO PROPERTY IS OWNED BY A COMMUNITY OF EJIDATARIOS (MORE THAN 100 PERSONS IN MOST CASES); IN OTHER WORDS EVERY EJIDO MEMBER OWNS AN INDISTINCT PIECE OF THE TOTAL LAND OWNED BY THE EJIDO.

EJIDO PROPERTY IS REGULATED BY AGRARIAN LAW, IT MUST FOLLOW A PROCESS OF “PRIVATIZACION” IN ORDER TO LEGALY BE SOLD TO ANY PERSON (NATIONAL OR FOREIGNER).

ONCE LAND BECOMES PRIVATE THE EJIDO MEMBER, NOT THE EJIDO COMMUNITY RECEIVES TITLE TO PROPERTY FROM FEDERAL GOVERNMENT. POPERTY IS NOW REGULATED BY CIVIL LAWS, THEN IT CAN BE SOLD BY THE EJIDO MEMBER (PROPIETARIO).

ONCE TITLE IS GRANTED, LAND HAS BEEN CONVERTED TO PRIVATE PROPERTY. AGRARIAN RULES DO NOT APPLY TO ANY SUBSECUENT ACT RELATED TO IT, THEREFORE DOCUMENTS SUCH AS “CARTAS DE POSESION” (LETTERS OF POSSESSION) DO NOT APPLY AND LEGALY HOLD MUCH LESS VALUE THAN “TITULO DE PROPIEDAD” OR TITLE TO PROPERTY GRANTED BY THE STATE OF MEXICO.

THESE ARE SOME OF THE THINGS THAT COULD HAPPEN BEFORE AND AFTER THE COMPLETION OF PRIVATIZATION PROPERTY PROCESS:

1. TWO OR MORE PEOPLE BUYING OR SELLING WITH THE SAME “CARTA DE POSESION”.
2. DECEASED OF PROPIETARIO (EJIDATARIO WHO GOT TITLE TO PROPERTY). IF OWNERSHIP WAS NOT TRANSFERRED TO EVERY ONE OF THE EJIDATARIOS LAND IS NOW INHERITED TO HIS HEIRESS. HOPEFULLY HE LEFT A WILL, IF NOT A WHOLE “JUICIO SUCESORIO” WHICH MAY TAKE YEARS, HAS TO BE COMPLETED BEFORE OWNERSHIP CAN BE TRANSFERRED TO THE PERSON WHO HOLDS “CARTA DE POSESION” TO THE PERSONS RECOGNIZED BY THE HEIRESS.
3. PROPERTY GETS SEIZED (TIED UP IN COURT) DUE TO OTHER LIABILITIES, LAWSUITS, ETC THAT THE EJIDATARIO MAY HAVE AGAINST HIM, MAKING HIM UNABLE TO TRANSFERR OWNERSHIP OF LAND.
4. TWO OR MORE PEOPLE END UP WITH THE SAME “CARTA DE POSESION” FOR THE SAME PROPERTY.
5. PEOPLE (EJIDATARIOS AND NON EJIDATARIOS) SELLING PROPERTY WITH “CARTAS DE POSESION” EVEN AFTER TITLE HAS BEEN ISSUED IN ORDER TO AVOID PAYING TAXES OR TO SAVE MONEY ON PAPERWORK ONLY TRANSFERRING THIS COST (AND POTENTIAL PROBLEMS) TO THE BUYER.

SELLING OR BUYING WITH LETTERS OF POSSESSION

THERE HAS BEEN  CASES IN WHICH THE EJIDO DECIDES TO PRIVATIZE LAND, THE ASSEMBLY OF THE EJIDO THEN SUBDIVIDES THE LAND  AND ASSIGNS RIGHTS OF POSSESSION TO  EVERY ONE OF THE EJIDO  ISSUING A “CARTA DE POSSESSION” BUT IN ORDER TO EXPEDITE THE PRIVATIZATION PROCESS, RATHER THAN SUBMITTING TITLE APPLICATION FOR EVERY ONE OF THE LOTS FOR EVERY ONE OF THE EJIDO MEMBERS THE WHOLE EJIDO AGREES TO APPLYING FOR ONE TITLE FOR ONLY  ONE OF THE EJIDATARIOS WHO COMPROMISES WITH THE EJIDATARIOS THAT ONCE RECEIVING TITLE HE WILL TRANSFER  PROPERY IN THE NAME OF EVERY EJIDATARIO WHO HOLDS THE LETTER OF POSSESSION (CARTA DE POSESION) RECEIVING A SIMBOLIC PAYMENT TO COVER HIS EXPENSES.

FOUR OR FIVE OR MAY BE MORE SALES HAVE BEEN COMPLETED USING THIS “CARTA DE POSESSION”, -MANY TRANSFERS OF OWNERSHIP NOT PAYING THE CORRESPONDING TAXES OF A SALE, BECAUSE LEGALY LAND CAN NOT BE SOLD!- WHILE TITLE APPLICATION IS BEING PROCESSED AND EVEN AFTER TITLE HAD BEEN ISSUED FOR OVER THREE YEARS.

IN ONE OF THIS CASES WE WERE WIRED BY THE PROPIETARIO (EJIDATARIO WHO HOLDS TITLE) TO GIVE OUR PROFESSIONAL ASSISTANCE AS WELL AS TO PROCESS ALL NECESSARY PAPERWORK IN ORDER TO FINISH TRANSFERRING LAND TO THE PERSONS WHO HELD A “CARTA DE POSESION” BECAUSE HE REALLY HAD NO IDEA OF THE DOCUMENTS HE HAD BEEN SIGNING FOR PEOPLE.

GOALS: WE WERE HIRED TO GIVE PROFESSIONAL ASSISTANCE AND FINISH TRANSFERRING OWNERSHIP TO PROPERTY TO EVERY HOLDER OF “CARTA DE POSESION”.

PLAN, STRATEGY: WE WOULD NOT CHARGE HIM FOR OUR SERVICES ONLY IF WE WERE ABLE TO PROCESS ALL THE TRANSFERRINGS THAT INLVOLVED SETTING A FIDEICOMISO, IN A WIN-WIN SITUATION FOR ALL THE PARTIES INVOLVED BY:

FIDEICOMISARIO – IF TITLE HOLDER WAS A FOREIGN

A)    BECAUSE HE WOULD GET PROPER LEGAL BINDING DOCUMENTATION OF PROPERTY.

B)    HAVING A GROUP OF PROFESSIONALS SUPPORTING THE TRANSACTION, COORDINATION COVERING ALL ASPECTS SUCH AS TRANSLATIONS BY A CERTIFIED TRANSLATOR, CONTRACTS AND FISCAL ASPECTS REVIWED BY LAWER AND BUSINESS PROFESSIONALS.

C)    HAVING THE EXPERIENCE AND EXPERTISE OF THE PAPER CHASE TEAM COMPLETING THE TRANSACTION.

PROPIETARIO (EJIDATARIO WHO HOLDS TITLE).

A)     PROPERTY TAXES ARE NO LONGER HIS RESPONSIBILITY.

B)     TAKES OFF ALL THE PRESSURE THAT COMES WITH “OWNING” OTHER PEOPLES PROPERTY.

C)     HIS/HER PEACE OF MIND BECAUSE IN THE EVENT OF DEATH THE FAMILY WOULD NOT BE INHERITING THE “PROBLEM” OF HAVING TO SIGN DOCUMENTS FOR EVERYONE OF THE MORE THAN 100 LOTS.

THE PAPER CHASE

A)    BY HAVING WORK. ONLY CHARGING CLIENTS FOR WHAT WE DO. DOING WHAT WE DO BEST, PREVENTING PEOPLE FROM HAVING PROBLEMS.

B)    HELPING SOLVE PROBLEM OF UNCERTAINTY OF OWNERSHIP.

UNFORTUNATELLY A REAL ESTATE COMPANY TALKED HIM INTO SIGNING TRANSFER OF OWNERSHIP AND OTHER PAPERS FOR A FEW OF ITS TRANSACTIONS. WITHOUT US CHECKING ON THE LEGALITIES OF THE SALES EVEN THOUGH THEY WERE AWARE OF OUR ARRANGEMENT WITH THE SENOR, SO WE DECIDED TO STEP OUT OF IT NOT WANTING TO DEAL WITH BAD REALTORS AND THEIR WAYS.

CONCLUSION:

IF YOU ARE GOING TO SELL OR BUY PROPERTY OR HAVE PROPERTY IN THIS KIND OF SITUATION HIRE A PROFESSIONAL TO ASSIST YOU OR THERE IS A CHANCE YOU PAY FOR IT LATER.

REMEMBER, IF YOU DON’T TRANSFER OWNERSHIP AND JUST HAVE A CARTA DE POSESION TO HOLD YOUR PROPERTY, LEGALY IT’S SOMEBODY ELSES PROPERTY NOT YOURS.

Contact us if you need support.

buying with letters of possession, egido land, fideicomiso, land titles, selling with letters of possession Hide

Are you thinking about renting your vacation property in Mexico?

or are you already renting your property in Mexico?

Do you know the fiscal implications of renting property in Mexico?

Keep the following in mind:

• Earning rental income from your vacation property, if it is in fideicomiso, must be reported with mexican revenue office (servicio de administracion tributaria).
• Failing to report income or not paying isr or impuesto sobre renta tax (direct tax over the rent or profit) could result in  serious consecuences, such as:

1. Losing rights to your property:  if you have a fideicomiso document providing rights to the property (contrato de fideicomiso translativo de dominio) you could lose said rights because of the fraud caused and not respecting the obligations one has in said contract.
2. If isr tax is not paid, this will be treated as non-fulfillment of fiscal regulations and is a fiscal evasion in both countries.
3. The property could be seized and put up for sale.

If you are already renting: prevent this from happening and make sure all your paperwork is in order. Contact the person who manages your property. Before the mexican irs (sat) and other government authorities notify you.

If interested in renting: hire a professional to help you comply with the fiscal implications of renting property in Mexico.

If you want to learn more, please contact The Paper Chase using our web form.

fideicomiso fiscal mexico advice Hide

WHAT MAKES US DIFFERENT THAN THE REST

Others offer the same services, but not the same service. The quality of our services goes beyond a simple acquisition of documents for clients (i.e. Fm3, Fideicomiso, etc); we follow-up on obligations and responsibilities that come with those documents.  Our compromise towards our clients is not over with the completion of one transaction, we go further; we look to establish a long term relationship that will be beneficial for our clients and ourselves.

We don’t just make simple translations, we make sure that every translation that comes off our desk is the most exact and accurate possible. This cannot be achieved only with technical knowledge of the language, but with understanding of culture, customs and the ideology of our clients.

What differentiates us from the rest, is our commitment, our honesty, professionalism and respect for ourselves and our clients.

All members of our staff are college graduates with honors and years of experience in their fields and  undergo constant training.

We assume the compromise of growth  and constant development not only of our company but further; we are committed to Mexico and with the rest of the world to support causes to promote caring and protection of our environment for the benefit of all the inhabitants of the world.

We are a Mexican company integrated with a team of professionals of different nationalities, which gives us a valuable advantage over our competitors by having a better understanding of our client’s needs. We meet all the legal requirements to operate in Mexico.

With almost a decade in business we continue to grow thanks to the trust and support of everyone of you; the clients of THE PAPER CHASE.

Remember; THE PAPER CHASE is with you if things go wrong and certainly when they are right!.

Sincerely,

THE PAPER CHASE TEAM

compromise, responsability, service Hide

It is not in the stars to hold our destiny, but in ourselves.

- William Shakespeare

Quote of the Day Hide

After spending the summer feeding in Alaska, gray whales begin their incredible migration south to winter in Baja California . They travel for 2-3 months to reach the warmer southern waters where they will mate and birth from mid-January to end of March. Large numbers of grays congregate in 3 bays along Baja’s west coast; Laguna Ojo de Liebre, Laguna San Ignacio and Bahia Magdalena (the southern-most bay, only 3 hours drive across peninsula from La Paz).

These shallow and highly-salinated bays increase newborn calves’ buoyancy and help keep them warm, despite their lack of protective blubber at birth. As fellow mammals, gray whale calves are born live and nurse their mothers’ milk, which is 50% fat (the gain 60 pounds per day diet!).
Here, gray whales will sometimes swim near small skiffs and allow themselves to be touched. Concern has grown about the impact of boat traffic around whales, and the number of boats allowed in the breeding lagoons is restricted. Along the migration route, boats’ proximity to whales is also limited.

Source: www.visitmexicohotels.com

activities, baja, la paz, tourism, whale watching Hide