ILikeMex
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What happens at the end of a lease?
If you "buy" land in Baja and go through a bank with a fudiciamo for a 50 year lease, what happens when the lease is up? Does the land go back to the
bank, govt; or does the owner get to renew? If renew, do they have to buy the land again?
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Bob and Susan
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a fidocomiso is a trust not a lease
the bank holds the title in a trust and you own the trust
there is 1000's of these in baja alone
its good for 50 years
then you can renew for another 50 years
then after 100 years the fidocomiso needs to be transfered into another name...it wont be you
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ILikeMex
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So at the expiration of the first 50 year trust, do you simply roll it over for another 50 years and just pay the bank for the additional fidocomiso
service?
At the end of 100 years, can you simply transfer it to someone else with out having to sell it to that person at current market price?
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MrBillM
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Eternal Optimists
A friend of mine (71 years old at the time), "bought" his property on a (30 year) Bank Trust and bragged to me that it was going to be his for the
next Sixty years.
In the spirit of good-natured conversation, I pointed out the obvious.
He was dead five years later and his survivor sold out. Came up 55 years short.
All other considerations aside, betting on what the Mexican Government might, or might not, do in the coming century is nothing but guesswork.
[Edited on 3-21-2008 by MrBillM]
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ILikeMex
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"All other considerations aside, betting on what the Mexican Government might, or might not, do in the coming century is nothing but guesswork."
I agree, but I was curious if the fidocomiso agreement had terms in it that stated the options or conditions at the termination of the trust.
Has onyone held a truns long enough that it has expired? If so, what were your options?
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vandenberg
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If my memory serves me right, a faint possibility, the fideocomiso term changed from 30 years to 50 years sometime in the 80's, which would mean
nobody has experienced an expiration date yet.
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ILikeMex
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| Quote: | Originally posted by vandenberg
If my memory serves me right, a faint possibility, the fideocomiso term changed from 30 years to 50 years sometime in the 80's, which would mean
nobody has experienced an expiration date yet. |
Right, but does the fideocomiso or other legal docs have wording that address termination of the 50 year trust?
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MrBillM
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1993
In 1989, the original law was revised to allow the original 30-year trust to be renewed for an additional 30 years.
In 1993, the 30-year period was changed to 50 years.
There was quite a bit of uncertainty prior to the 1989 revision because the original law had left open the question of "What" would happen when the
trust expired and the earliest examples of the trust were closing in on that date.
At the time of the 1989 revision, the law was written to state that the trust MUST be renewed upon request and payment of fees unless the Government
could show cause in individual cases why that should not happen.
Here's a link which may answer your questions. I haven't read the whole thing.
http://penasco.com/goldenbeacheslocked2.pdf
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ILikeMex
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Interesting read. Here is the section that most seems to answer my question - which the answer is that at the end of the trust (X2 50 year) the land
must be sold with proceedes going to the beneficiciary.
What is still unclear is if only the 30 year term has been extended to 50 years and then still has to be sold after 2 go arounds; or, by way or his
working the 50 year trusts are renewalable more than 2 times.
"Initially, the trust was created for a 30-year term. At the expiration of the term, the trustee had to sell the property to a qualified buyer,
another trust, or a Mexican citizen, and deliver the net proceeds to the beneficiary, thereby terminating the trust. On May 16, 1989, the government
announced that all trusts would be extended for an additional 30 years with presentation of proper and timely applications. The new Foreign Investment
Law of 1993 increased the trust’s term to 50 years with 50-year renewals permitted."
[Edited on 3-21-2008 by ILikeMex]
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Marla Daily
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Expired Fideicomiso
Our FIDEICOMISO (note spelling!!) is expiring this year. It is the second one ever issued in Loreto (1978) and was for 30 years. Orlando at Bancomer
just told us two weeks ago that it will cost $1600 dollars to extend the term another 50 years. He said that we can begin the process a year in
advancve of the expiration date, which we will do on our next trip down. Lets see if it really as simple as that.
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Bob and Susan
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wow marla... you are a "trailblazer"!!!
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bajamigo
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Darn it, Marla, before you corrected the spelling of FIDEICOMISO, I was enjoying speculating on the number of versions that would appear before this
thread ended.
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marv sherrill
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What happened to i before e except after c - guess not in espanol...
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MrBillM
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I before E
Even in English, that rule has countless exceptions.
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Gypsy Jan
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What Marla Said
Take note of the correct spelling if you are willing to do the research.
Wikipedia has a lengthy entry.
“Travel is fatal to prejudice, bigotry, and narrow mindedness.”
—Mark Twain
\"La vida es dura, el corazon es puro, y cantamos hasta la madrugada.” (Life is hard, the heart is pure and we sing until dawn.)
—Kirsty MacColl, Mambo de la Luna
\"Alea iacta est.\"
—Julius Caesar
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Bob and Susan
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where is buruce leech when i meed him
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Gadget
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| Quote: | Originally posted by bajamigo
Darn it, Marla, before you corrected the spelling of FIDEICOMISO, I was enjoying speculating on the number of versions that would appear before this
thread ended.
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I never get that darn word spelled right.
"Mankind will not be judged by their faults, but by the direction of their lives." Leo Giovinetti
See you in Baja
http://www.LocosMocos.com
Gadget |
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The Gull
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| Quote: | Originally posted by vandenberg
If my memory serves me right, a faint possibility, the fideocomiso term changed from 30 years to 50 years sometime in the 80's, which would mean
nobody has experienced an expiration date yet. |
Bad information.
Trusts were granted along the Pacific coast in the early and mid 70's. They were the 30 year variety and for those who wanted to renew using the new
50 year one, all they needed was to start the application process one year prior to the expiration, pay around a $1000 fee, use a Notario Publico and
get a land survey done.
Hundreds of these expired trusts have been converted to the 50 year variety over the last six years.
�I won\'t insult your intelligence by suggesting that you really believe what you just said.� William F. Buckley, Jr.
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Terry28
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I renewed our two bank trusts last year...No problems at all, I paid around $1500 per trust. Our old master trust was expiring after the 30 yr period.
We now have individual trusts for 50 yr.s Totally painless and the whole thing took about 30days, start to finish...Our house sits on two lots so
two trusts...I tried to merge the lots but no luck....so two bank fees every year.
Mexico!! Where two can live as cheaply as one.....but it costs twice as much.....
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