Posted by Daniel on December 20, 2006, 7:25 am, in reply to "Re: L.A.Times Article on Mexico"
Hi Julie, |
your post in bold
It's amazing that no one seems to talk about the fact that all this "investing" is happening in areas (La Manzanilla included) that under the Mexican Constitution land within 50 Kilometers from the ocean cannot be owned by ANYONE except members of the existing Ejido. (ANYONE includes Mexican Citizens).
I talk about it all the time with the people I work with through Costa Alegre Properties. What you are referring to is the restricted zone and the Federal Zone which are two different things.
The restricted zone is apox 30 miles from the water and 50 miles from the boarders all over Mexico. Mexican citizens (including foreigners who have become Mexican citizens) can hold properties in this area but foreigners must hold the land in bank trust (fideicomiso).
In order to get bank trust the property must be titled. Here in La Manzanilla we are in the process of getting titles but they have not been issued on a mass basis yet.
What the foreigners are doing is putting the property in the name of a presta nombre then going to the Notary and getting a power of attorney, a lease agreement and a promise to transfer title arrangement with that presta nombre. If that presta nombre is a member of the Ejido then from my understanding technically it would be a bit more secure.
Presta nombres are illegal, if you are using a presta nombre to AVOID bank trust the Mexican government feels you are trying to cheat them and may take punitive action. Here in La Manz we are using presta nombres because bank trust is NOT available. The intent is not to cheat the government but to hold something until bank trust is available. That does not make presta nombres legal but the intent is certainly different.
The risk comes in two areas, the space of time in-between "buying" the property and getting title and the integrity of the Ejido itself.
In the gap of time between buying and title (bank trust) things could happen, international relations could be strained or several other situations could occur.
Most articles I read on Ejido land fail to distinguish between the Ejido's themselves. Some are honest with good people and others are rotten to the core. The Ejido is not just the people in the office who run the daily business, it is the people of the Ejido itself. The people in the office can not implement a policy without it being approved by the assembly (all of the Ejido members) who meet on the first Sunday of the month every month. It is there that the consistency and integrity lies and it is there the trust (should you choose to trust) should be placed.
The advantage to getting something now is having a better selection and lower cost. After titles are issued prices will soar as there are many more buyers once bank trust is available.
The Federal Zone is 20 meters from the ocean or any body of water (like the Lagoon). No one can own property there including Mexican citizens but the property can be used by getting a Federal Zone concession. Those concessions are now being issued for 15 year time spans and are automatically renewable.
But there is a caution here. If you have a concession which is attached to property be that Ejido or titled then it is much more likely that the concession will be renewed. Down the beach a ways past the beach lots which supposedly do have title (I have not seen one of the titles yet) there is no Ejido or titled land to attach the concession to, it is all currently being considered as Federal Zone and being used with a Federal Zone concession.
In that case if there were a big hotel or something that wanted to go there and your concession was in the way they would most likely not renew it. It is the goal of Mexico to become the number one tourist destination in the world and it is the branch of government called FONATURA (and other branches) which are taking Mexico toward that goal. If you had a concession on the beach and were bringing in say $1,000 to the local economy and a hotel which would bring in $10,000 a day wanted to go there which do you think they would prefer?
Speculation anyone??? Anyone else hear of what's happening in Cuastacomate? Not too pretty from what I hear.
Good advice, the above word's are my understanding of things and are not to be taken as the Bible truth (not sure that exist in Mexico). Don't go crazy and leave your common sense at the border. Gather information, digest it and then come to your own conclusion, if it is for you then go for it, if not don't.
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