Part1!
If you are leasing your land. We are bout to also, but have a little hesitation about what happens at the end of the ten years. Do the landlords
generally keep good faith on renewals and fee increases past the tenth year? We got the legal stuff understood(whatever that may be!) I am looking for
your personal experances with leased land with a home you built on it.
Part2!
Hey thanks for the input. Would u mind answering a few questions? What % increments per year do you have? Did you have a Notary Public there as you
signed the lease? And last, did you register this legal doc at the town?s clerk?
[Edited on 1-8-2005 by yankeeirishman]
[Edited on 1-10-2005 by yankeeirishman]
Whaaaat!!
capt. mike - 1-8-2005 at 09:02 AM
there is nothing "general" or "usual" about doing biz in mexico.
Caveat emptor rules!....well, in your case let the "lessee" beware.
good luck with your deal though.
as always best advice....don't deal in amounts you cannot afford to lose.Dave - 1-8-2005 at 01:04 PM
The ONLY way I would lease is if I put a mobile home on the property so I could take it with me when and if.
Mike gives good advice. Don't invest more than you can afford to lose.Bruce R Leech - 1-8-2005 at 01:47 PM
all the advice above is goo in my opinion.have the Lease checked out By reliable people be for you sine it. talk allot to other tenant's be for you
sign it
[Edited on 1-11-2005 by Bruce R Leech]Dave - 1-8-2005 at 02:29 PM
I would add that you don't have to accept the lease as written. You can make changes to your mutual satisfaction. There is no such thing as a
standard, take it or leave it, lease. If the landlord insists....walk away!
On more thing:
If it is not stipulated in the contract, your landlord can (and probably will) increase your rent over the lease term.
I believe,(not for certain) that the maximum, without stipulation, is 10% per year. Ouch!CJ - 1-8-2005 at 04:39 PM
Yankee,
Would you build a house on someone elses property in the U.S.? I doubt it. It is much better to buy the property and get a fidocomiso. That is a
fifty year lease that is transferable and can be left to a benaficiary. A lease usually means you build it, maintain it and usually leave it to your
landlord or someone in his family.
Come on Sharky give Yankee your firsthand two cents on this subject. Any way you go buenos suertes amigo. CJ
Lease
capn.sharky - 1-8-2005 at 10:30 PM
I think Bruce meant "sign" it. Yes, get a good abagado or attorney to check it out for you. I had a five year lease---level payments payable yearly
in advance. My landlord wanted to double it before the first year was over. I moved. I think a lease is just about as good as the landlord---so get
references and don't put much money into your property. You can take your stuff with you when you leave---if it is written into the lease. I would
recommend this. The laws in Mexico, believe it or not, are bent towards the lessee and not the lessor. They even have a form of rent control. Where
are you thinking of leasing. If its in Loreto I could recommend an excellant lawyer (a female) to you. Not expensive and very honest.Dave - 1-8-2005 at 10:45 PM
Quote:
Originally posted by capn.sharky
The laws in Mexico, believe it or not, are bent towards the lessee and not the lessor.
1. Your Mexican landlord is betting that you don't know that.
2. He probably doesn't care because the courts would probably rule in his favor anyway.
As a rule, gringos don't win law suits against Nationals.
Gringos vs. Mexicans
capn.sharky - 1-8-2005 at 11:47 PM
Dave---I am sorry to not agree with you on this point. The laws in Mexico and the courts have and are changing. I won big time over my landlord. I
could have stayed and continued paying as per the lease....according to the judge. I am the one that drew up our lease and it held up in court on
every point. I don't recommend doing it yourself and the judge reminded my that I was not licensed to practice law in Mexico (and I am not a lawyer
here in the USA either). However, the lease was fair to all concerned and I actually tilted it in favor of my landlord---who I had known for 12
years. Mexico is becomming foreign friendly as the government understands that the tourist dollar is important to Mexico. My land and house was on
Ejido land and my landlord was an Ejidatario too. I was, frankly, amazed at the judges ruling. In fact, he told my landlord he was a thief and a
scoundrel and he should be put in jail. When moving day came, the police showed up and my attorney spent the day on my property while I moved. The
landlord came out to tell me I could not move my garages and the attorney and police sent him packing and told him they were about to put him in jail
for a year or so. I chose to move as he lived in the front house and I could not be certain of vandalism and theft if I stayed. One post above says
it all as far as I am concerned---don't invest more than you can afford to lose. Same as going to Vegas. They also have laws protecting the lessee
from big increases in rent---a form of rent control. My dealings with the legal system in Mexico have always been fair. This, I suspose, could
change from one area to another. Also, be advised that a lease for more than 9 years 11 months and 29 days is illegal and unenforcable in Mexico.
One exception to this is the fidiecomiso which is usually for 50 years and renewable at the lessee's option. Also, remember, the President of Mexico
can wake up some morning and decide he wants all foreigners out of his country. Besides the fidieocomiso there is the prestanombre and corporation
situations that can hold property. Lastly, things have improved so much in Mexico that there are title companies in the US that will insure certain
properties in Mexico. Hope this helps a little....or did I just confuse everyone a little more?Dave - 1-9-2005 at 01:31 PM
Bravo Sharky! Maybe if more gringos would fight back things would change even more quickly. However, could we agree that your experience is the
exception rather than the rule?
Question:
I've heard that Ejido leases can run for thirty years. Any truth to this?
Sure-we can agree
capn.sharky - 1-9-2005 at 03:21 PM
As far as I know, the ejido leases were only for one day less than ten year. In the past, they used fifteen years. The Ejidos are a thing of the
past in Mexico. Fox wants them all disbanded. They no longer serve a purpose. Any land held by them is subject to taxation. Most have given away
as much as they can to their members and are abandoning the remaining. Current law states that any lease over ten years is unenforcable in court.
Yes, my case was different. I have been going to Loreto for over 30 years now. I have many fine mexican friends their. I treat the Mexican people as
equals and with respect. I do not feel it is a crime to be poor. Especially when your govenment continues to hold you down. As a general rule, I
find the Mexicans much happier than we are here in the US. They live a much less stressful lifestyle and are friendly when treated correctly. They
seem to be smart and hard workers. They really are no different than a cross section of our people except they seem to accept their lot in life.
Those of us (especially on this board) are lucky to have a place so close to home and yet so different from here. Sorry did not mean to get off the
subject.
off the topic
yankeeirishman - 1-9-2005 at 03:48 PM
No, no! Good remarks about the fine folks of Mexico are always welcomed. I feel exactly the same way. Been traveling this country for 18 years now,
and always wonder why the hell I return to the states as I pass the boarder crossing!Bruce R Leech - 1-9-2005 at 05:56 PM
Quote:
Originally posted by Dave
Quote:
Originally posted by capn.sharky
The laws in Mexico, believe it or not, are bent towards the lessee and not the lessor.
1. Your Mexican landlord is betting that you don't know that.
2. He probably doesn't care because the courts would probably rule in his favor anyway.
As a rule, gringos don't win law suits against Nationals.
Right on DavidDanO - 1-10-2005 at 12:08 PM
I just renewed my lease (one day less than ten years), which has a provision capping the percentage it can be increased upon renewal on a per square
meter basis. I also concur with Pompano. There are many places in the states where ground leases are quite common (the land at my parents' place in
Corona del Mar in the seventies was leased from the Irvine Company). My landlord has had leasing arrangments with a number of other folks going back
to the sixties whom I talked to before getting into the deal. Some of the people there are the second generation of lessees in their families.
Things of course can always change, but from a financial point of view, it makes sense for him to have solid, long term relationships with his
lessees. I'm quite comfortable with the arrangement.burro bob - 1-11-2005 at 10:38 AM
Dave, you asked if Ejido's could lease for thirty years. At one time the law said they could and that is when National Pen Corporation formed El
Dorado Ranch. The laws have changed since then and the 9 year 11 month law is now in effect.
Yankeeirishman, the only other thing I might add about leases is that many campos in the San Felipe area that used to lease are now selling the lots
when the lease runs out. The people then have a fedieocomiso payment and a yearly campo maintenance fee. The campo owner now gets some yearly income
but the new "owners" pays the taxes. Pompanos point should be well taken, look for a campo with a lot of happy residents.
