BajaNomad - FMZ concession question

FMZ concession question

pacside - 1-2-2009 at 08:36 PM

I am fortunate that the person who has the FMZ concession in front of my casa has offered to transfer it to me. He thinks, but isn't 100% sure that a Mexican Corporation is required to take over the concession. My property (~1/3 acre) currently is in a Fideicomiso.

Can anyone shed some light on whether this is the case or not?

Thanks,
pacside

Woooosh - 1-2-2009 at 08:50 PM

see the "tramites" post.

It's not something you can do long distance, it's not something that gets done fast (ours took over two years and came through when we finally gave up on it). You really have to tust the other person because by the time you get approved/disapproved they'll be long gone.

Ours was a major PIA and that was for a mexican national requesting a FMZ concession for land abutting the property we already had clear title to.

FMZ manipulation is the most common type of land grab scam in Baja norte. If they were doing something illegal- you don't want to be left holding the bag. I think it is illegal to buy or sell FMZ concessiions- at least that is what I was told. The FMZ belongs to all the people of Mexico and you are just renting the use of it- so to speak. Why not just let his FMZ concession expire and you apply for a new one? JMHO though.

[Edited on 1-3-2009 by Woooosh]

The easy way

Dave - 1-2-2009 at 08:55 PM

If he has a Mexican corporation with the concession then just transfer the stock. Buy the corporation.

oxxo - 1-2-2009 at 09:29 PM

Consult a GOOD Mexican attorney!

oladulce - 1-3-2009 at 02:13 AM

I've never heard of a federal zone concession "transfer" from one person to another. It's not really the other guys prerogative to pass the zona on to you.

I'm betting he has to notify SEMARNAT that he'll be relinquishing his concession, then you can start your application to apply for the zone.

The main reason I think a transfer isn't possible is that it won't really be your concession. Your fideicomiso bank is the one who applies for your concession, because since you're a foreigner, you're not really the "owner" :rolleyes:

Your bank will draft a power of attorney which gives the person who files your concession application permission to sign for the bank. Unfortunately the bank doesn't file the application for you, they just want their hand in the pie.

Your bank will have top billing on the concession and your name will be secondary.

Ours was the first concession for the zone in front of us and we had to wait for SEMARNAT to send some guys out to survey the federal zone and place markers. Even if you will be applying for the exact boundaries that the other guy is giving up, you might have to have another survey. You definitely will require photos of the zone as part of your application.

Manuel Barajas is an attorney in la Paz who specializes in environmental permits, etc. He's helped us with some Federal zone questions and is a former SEMARNAT employee. He's hard working, honest and a nice guy. u2u if you'd like his contact info.

Bob and Susan - 1-3-2009 at 07:45 AM

if you he concession has a mexican corp that holds the concession you could buy the corp...

then you have control of the concession

but...

remember if you buy an old corp you assume the liabilities of that corp

plus...

you need to file monthly tax reports and a big yearly report
(you need to pay for an accountant)

if a new concession need to be applied for...
you need assistance
it isn't a friendly system

i also reccomend Manual Barajas and can give you his info

pacside - 1-6-2009 at 03:11 PM

Quote:

Originally posted by Woooosh

FMZ manipulation is the most common type of land grab scam in Baja norte. If they were doing something illegal- you don't want to be left holding the bag. I think it is illegal to buy or sell FMZ concessiions- at least that is what I was told. The FMZ belongs to all the people of Mexico and you are just renting the use of it- so to speak. Why not just let his FMZ concession expire and you apply for a new one? JMHO though.

[Edited on 1-3-2009 by Woooosh]

Woooosh - Appreciate your input. There will be no buying or selling of a concession. I don't think this person will let this expire. I believe this concession was originally applied for to 'protect' the beachfront from turning into a cancun. I will continue to protect it as open space for the use of the public.

I was just wondering if I have to form a MX corp in order to start the 'paperwork' or if I can do this with my Fideicomiso.

pacside

pacside - 1-6-2009 at 03:20 PM

Quote:

Originally posted by Dave
If he has a Mexican corporation with the concession then just transfer the stock. Buy the corporation.

Dave - I do think this is what the person had in mind. So in this scenario then you are suggesting I create a MX Corp to enable the transfer of stock si? It cost to hold a concession and I think he wants to offload that concession cost to the landowner(s), realizing the landowner will have the same goals of protecting open space for all to enjoy.

pacside

pacside - 1-6-2009 at 03:30 PM

Quote:

Originally posted by oladulce
I've never heard of a federal zone concession "transfer" from one person to another. It's not really the other guys prerogative to pass the zona on to you.

I'm betting he has to notify SEMARNAT that he'll be relinquishing his concession, then you can start your application to apply for the zone.

The main reason I think a transfer isn't possible is that it won't really be your concession. Your fideicomiso bank is the one who applies for your concession, because since you're a foreigner, you're not really the "owner" :rolleyes:

Thanks for the info oladulce - I knew this wasn't going to be simple. Check your u2u.

pacside

pacside - 1-6-2009 at 03:32 PM

Quote:

Originally posted by Bob and Susan
if you he concession has a mexican corp that holds the concession you could buy the corp...

then you have control of the concession

but...

remember if you buy an old corp you assume the liabilities of that corp

plus...

you need to file monthly tax reports and a big yearly report
(you need to pay for an accountant)

if a new concession need to be applied for...
you need assistance
it isn't a friendly system

i also reccomend Manual Barajas and can give you his info

So it sounds like you agree with Dave that I need or should start a MX Corp si? Or it is just easier to do it that way vs. deal with the fideicomiso somehow trying to obtain this concession this way.

Yes I would like Manual Barajas info. thanks.

pacside

Woooosh - 1-6-2009 at 03:36 PM

Quote:

Originally posted by pacside

Quote:

You're welcome. I'm not sure what residencey requirement you will need. Someone else here will.

If your property does actually touch the land you are requesting to protect- you are first in line. It will cost you from $4000-$6000 to get your ornamental concession (which is the kind to protect the beach and only allows to to add simple wood, landscaping or stone improvements). You need an achitect to do the land surveys, photos, and make copies of the documents to submit locally and to Mexico City.

Having said that, this is Mexico- and you would still would not be totally in the clear once you get it. Mexico City could still issue a "concession for profit" to a developer if they showed the project they planned would benefit the mexican people, the economy and create taxes and jobs. They really don't value beach and more Cancuns is just fine with them. That concession would override your ornamental concession and you'd be SOL once that one is issued I am told. It would be nice if Mexico City would come back to you first and give you the option of chagiing your concession to one for development (even if only to install restrooms or showers), but I don't think it works that way. It works with money.

We do the best we can to protect our views, the beach and the environment and then don't worry too much about the things we can't control.