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oldhippie
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Posts: 742
Registered: 6-25-2006
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I like this exclusion in the Stewart insurance contracts:
"Any decree, resolution, law, treaty or governmental regulation or restriction (including but not limited to building and zoning laws or regulations
of any federal, state, or municipal government of the United Mexican States) restricting, regulating, prohibiting or relating to:
(a) the occupancy, use, or enjoyment of the Realty"
and on and on
Seems to me they have excluded the biggest risks. Insurance is such a racket.
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capitolkat
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Registered: 3-9-2006
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If a FM3 was required no one who wanted a vacation home in Mexico could own one through a fidecomiso. I spoke to two attorneys in La paz, the Notario,
had a local who had worked for the local tax office and several realty offices check the facts. None questioned the purchase by someone who was there
on a tourist visa.
Nearly 30 years ago I and several buddies bought land and built a house in Pedregal in CAbo. That was when the fideo process was just underway and
same thing - none of us owners had an FM3 only tourist visas and 15 years ago when we sold everything was fine.
Life is too short to drink bad wine
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toneart
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When I offer an opinion, it is just that, but it is based on my experience. You can get a fideicomiso with an FMT, but you will lack the protections
that an FM3 would give you in case of a problem. And buying property in Mexico is a virtual land mine. You can take all the right steps as you see
them and still get your feet blown off.
I was told that I need an FM3 for the fideicomiso before I bought my property. Since then, I have known people who bought and obtained fids with
FMTs. You will get opinions for either position, but why take a chance? Get the FM3.
Regarding title insurance with Stewart or any other U.S. Title Insurance company, even if its guarantee is"worthless" when it comes to Mexican law in
practice, your recourse wouldn't be with the real estate company or the Mexican government, it would be with the title company. You have a contract in
the form of an insurance policy. There are many things that can go wrong, but they have to stand behind it. That's why you buy insurance. (We're only
talking about clear title here).
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oldhippie
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I understand that Title Insurance is just that - Title. But one of the biggest title issues is a government law distinguishing between Ejidal land and
private land. Does their exculsion nullify a title claim if the title was granted via some incorrect mechanism to Eijdal land?
Isn't that a law restricting occupancy?
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toneart
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| Quote: | Originally posted by oldhippie
I understand that Title Insurance is just that - Title. But one of the biggest title issues is a government law distinguishing between Ejidal land and
private land. Does their exculsion nullify a title claim if the title was granted via some incorrect mechanism to Eijdal land?
Isn't that a law restricting occupancy? |
Your questions regarding title company "exclusions" is one that the title company would have to answer. Good luck with getting a straight answer!
Regarding private land, if title were in dispute by an ejido, the title search would reveal that and therefore wouldn't issue the insurance.
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oldhippie
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Thanks toneart, as you can tell I'm very wary of fraudulent insurance. Just to make sure that they didn't issue a policy on ejido land I would have
the exclusion amended to cover what I'm worried about.
You assume the title search will reveal what I'm worried about. Good! Then no problem amending the policy.
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bajafreaks
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Registered: 3-27-2007
Location: Gardnerville, NV./ Los Barriles BCS
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WOW !!! Thanks very much for all the great feed back. I will look into the FM3 requirement, I've heard both sides as well, need it/don't need it. How
much of a pain is it to get one? and will it need to be done before we start the "fideo" process or can it go hand in hand? You guys are making me
think twice about title insurance? The insurance would of course be on the property and it's valve, but what about once you put a house on it?
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capitolkat
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Posts: 510
Registered: 3-9-2006
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One major consideration in obtaining an FM3 is that within 6 months of activation of the FM you can move household goods to your Mexican residence and
not pay duty. If more than 6 months pass before you move your goods you pay. if you are like me and wanted to buy and plan and then build a home and
the process will eventually take about 2 years I reallllly don't want the FM before it's time-- thus, I made the inquiries about resident status. In
the final analysis the Notario who executes your fidecomiso has the discretion (note I didn't say legal right)to demand an FM and if he signs off
without it you have an interest in your land recognized by the Mexican judicial system and confirmed by the Mexican dept of Interior, and held in
trust by a chartered Mexican bank. Works for me.
Life is too short to drink bad wine
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bajafreaks
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Registered: 3-27-2007
Location: Gardnerville, NV./ Los Barriles BCS
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So it sounds like it's all up to the notario. And yes we don't plan to start building for at least 1-2 years.
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Iflyfish
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Registered: 10-17-2006
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Keep in mind that lawyers in Mexico are not the same as lawyers in the US. They are not generalists and usually have knowledge of a rather small,
particular area of interest.
My understanding of this process is closest to Osprey's. It is a fluid process. It is in ones interest to have powerful friends involved who know the
local lay of the land and the players involved.
Iflyfish
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Pescador
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Posts: 3587
Registered: 10-17-2002
Location: Baja California Sur
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It never ceases to amaze me that we all continue to buy property in baja because we love to live there, but it has never been easy nor effecient to do
transactions. The biggest shock is that we probably all enter into the situation expecting things to be somehow related to what we did in the US but
quickly find out that the beauracracy does not function the same in Mexico as we are used to. Now I am sure that the mega developments like Loreto
Bay may make this whole process easier, but I don't want to live there anyway and look at all the fun I had going through the process and all the new
words I learned. I even became more fluent at cussing in Spanish.
I guess it is a lot like having children. You have them when you are young and stupid, when you are older and wiser, you wouldn't even consider the
possibility. 
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