Does anyone know what the "improvement rules" are for either a large or small parcel of raw land with a Fidecomiso?
I have heard that if you have a Fidecomiso for a large parcel of raw land, you have an obligation to invest a certain amount of monies into the
property within a certain time frame.
Is this true?
If so, do you know of anyone who has had an “official” from the State (Baja Norte or Sur), or a Bank Representative from where your Fidecomiso is
held, ever come out to the property to verify the improvement?comitan - 12-3-2009 at 04:04 PM
Yes its true if its more than 2000sq. mts.larryC - 12-3-2009 at 04:53 PM
I just bought an existing fideocomiso, it is about 4500 sq meters. The person we bought from signed a promise to invest X amount of money into the
land. Under the advice of his (and mine) attourney (an enenada notario) he was told by the notario that there is no law to actually require him to
really invest the money in the land. So I asked the notario if there was any liability on my part and he said absolutly not. The notario told me that
there is a commission in Mexico city that is in charge of foreign investmentand it is their job to estimate that amount of foreign investment every
year.
You should ask your notario and see what he or she says, and I would be interested in the answer.
LarryPaulclark - 12-3-2009 at 05:30 PM
In a fideocomiso the amount of investment is usually $200,000 for 2,000 sq. meters and $100,000 for every 1,000 sq. meters thereafter. Most people
who buy larger parcels usually subdivide off 2,000 sq. meters and put that in a fideocomiso and hold the balance in a Mexican corporation. I have
never heard of anyone being questioned about their investment or lack of investment, but it is a contractual obligation in a fideocomiso.
Thanks....
Juan del Rio - 12-3-2009 at 05:46 PM
...for the insight. I have never heard of someone coming out to verify that the investment has been made per the contract.
Does anyone know the time requirement?
I'm trying to locate just one person who may have had a verification done. So far, I have not been able to locate one. If anyone does know, it would
be nice if you could pass on the outcome.ncampion - 12-3-2009 at 06:42 PM
Just did a fideo on a 4200m lot and the obligation letter was for $350,000USD. No idea if anybody checks, but we plan to spend that much on the house
anyway so I'm not concerned. I will keep all facturas just to be sure (as well as for CG's). The bank has a set schedule of how much the obligation
is based on the size of the lot. Under 2000m is "free". The explaination is to discourage speculation.oladulce - 12-6-2009 at 12:00 AM
Quote:
Originally posted by Juan del Rio
...for the insight. I have never heard of someone coming out to verify that the investment has been made per the contract.
Does anyone know the time requirement?
The investment requirement is supposed to be based on the size of the property and there's a formula that someone posted last year on nomad. We have 2
adjoining 5000 sq m lots but for some reason the front fidei's investment clause is $350,000 and the back 5000 sq m lot is $300,000.
The time frame for the investment says "2 years from the time of purchase".
The investment requirement is part of the approval process for foreigner's to own property in the restricted zone and it's regulated by the Ministry
of Foreign Relations in Mexico City.
Your Fidei bank and Notario have to make sure this foreign relations permit has been obtained before they process your Fidei, but that's the end of
their responsibility on the matter. Once your fidei is established, the bank has nothing to do with the investment clause- they don't regulate in,
they don't care about it. It's not their department.
We've never had an investment inspection on any property for the past 20 years and I have never heard of any inspections taking place.
We used to be concerned about the investment clause and asked attorney Vernon about it . He hadn't heard of any inspections either. He also said
that there is no documentation anywhere what the penalty would be if you were caught not investing.
Vernon confirmed that he was not aware of any Inspectors from the department of the Ministero of Foreign relations.Donjulio - 12-6-2009 at 08:16 AM
This is another one of those "weird" laws in Mexico. The bank issues the fidi and the letter of obligation. You are signing the letter promising the
"bank" you will do this. However the moment the fidi is in your name then the bank has absolutely nothing to do with it because they are "legally
obligated" to act on your behalf.
Unfortunately nobody REALLY knows what the laws are. If you think about it Mexican real estate laws for foreigners are still new. There are supposedly
11 different regulatory agencies in Mex for real estate. But who are they and what exactly do they do? Good question.
Even some of the notarios don't know what they are doing so you have to be careful. Do you think that some of these guys who got an "appointment for
life" are really taking the time to familiarize themselves with the laws?
A friend of mine who lives here full-time was just told by a Notario in Mexicali that he could put his house in a corporation and he didn't need the
fidi. How do you argue with the Notario? So friend thinks he is good as gold. Unfortunately now he is at risk of having his house confiscated in the
future. So.....
