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bgp5740
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Disclosure - Grant new 10 year lease
Hi again, thanks for the comments on trying to disclose all of the facts. I am answering questions in two places in this forum. There is another
thread as well on the house "Ask the Owner".
As far as lease renewal, here is what I said in that thread:
" I don't believe there will be any problem getting a new 10 year lease. I would not buy the house if there was not one nor should anyone else. It
will be all about negotiating and paying the transfer fee I spoke of in my prior post."
And so you don't have to search for that thread and the prior referral when asked:
"If the lease is not renewed, the investment is lost, is this correct?"
My responce:
"If you don't renew this lease, like any lease it would be canceled and the investment lost, yes. a) There is an option to renew the lease for another
10 years in the existing lease, however this is not legally binding in Mexico. b) While the lease contains no obligation to pay a transfer fee when
the house is sold, the tradition is to pay a fee to the landlord. They always ask 10% but the fee should be much less. For example I paid $85,000 for
the original home and paid a $2,000 transfer fee. When this is done, you will get a new 10 year lease.
After many years living full time in Mexico I can say that in my experience everything is a negotiation. I wrote a paper on what I think was going to
happen with the land and the lease that you can view at http://www.jetiii.com/House/Land_Investment.pdf
I have just been informed that the camp owner is sick and in the hospital in Mexicali. While my prayers are with my old friend, just like with my own
health, life goes on. You should read this paper in it's entirety and form your own conclusions.
Hope this helps,"
jtorres
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Capt. George
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I was told that the only "legal lease" in Mexico is for a one year term only, and even that is questionable where a gringo is concerned???
What is the truth to this, anyone know, no guesses or opinions, facts please...
\"The penalty good men pay for indifference to public affairs is to be ruled by evil men\" Plato
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Roberto
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| Quote: | Originally posted by Capt. George
I was told that the only "legal lease" in Mexico is for a one year term only, and even that is questionable where a gringo is concerned???
What is the truth to this, anyone know, no guesses or opinions, facts please... |
I know for a fact that is not correct. The longest legal lease is ten years minus one day. Gringos may lease as well as Mexicans. "Renewal Options"
are meaningless.
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DENNIS
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And, to my knowledge, you can't write up a legal lease in a bar. They have to be composed by a notary.
Also, unless one is completly legal with immigration, one cannot enter into any kind of contract and expect it's protection.
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bgp5740
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Roberto is 100% correct.
While living in Baja for 7 years our company dealt with the sales of various properties in Baja and have actually had our Mexican attorneys check out
what it would take to get out of these 10 year minus 1 day leases. If the person is a Mexican citizen or has legal status (FM3 or some FM?) the leases
are nearly impossible to break unless there is a default.
While a lease reviewed and signed by a Mexican Notary (not anything like our U.S. Notaries, actually a special class of government approved attornies)
is by far the best way to do anything in Mexico, it is not a requirement for leases.
As an example, a legal lease is necessary to get your belongings from the U.S. to Mexico (without paying taxes) and to use the Mexican Civil Court
System. The lease referred to below has been reviewed and accepted by Mexican Immigration, reviewed by a Mexican Attorney and used with our FM3 to
show status in Mexican Civil Courts, both State and Federal. It WAS used and approved to bring in all of our furniture and other items duty free by
Mexican Immigration and in a civil case that went through all four levels of Mexican Courts right up to the high Federal Court.
Basically Mexican Contracts with Americans (all of then) need to be in Spanish and English, signed by all parties and must have at least two
witnesses. A copy of such a lease available at the house site in http://www.jetiii.com/House/Land_Investment.pdf (at the bottom).
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Terry28
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Bgp5740,
You have obviously done your homework on this. I did the same and with the same results that you got...good luck you should have multiple full cash
offers!!
Mexico!! Where two can live as cheaply as one.....but it costs twice as much.....
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Hook
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Bgp5740, I have to commend you. I dont think I've ever seen the level of disclosure you have provided on your property, between your website and this
discussion.
I wish you good fortune on the sale.
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bgp5740
Newbie
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Thank you Terry28 and Hook
Thank you both for your kind words. There is nothing to hide here. I have been very fortunate and have had very unique experiences while working and
living in Baja. I started out trying to bring the first U.S. Software Company to Baja. This gave me about 6 straight months working with the Baja
Norte Department of Economic Development. I have been lucky enough to have been invited to visit and speak at most of the collages in the State
including the Southern Hemispheres Science Center Cisesi (I think that is the spelling).
When the .com crash came I didn't want to leave Baja so I got involved with numerous building developments, some just with early internet sales right
up to starting with undeveloped land through the entire sub-division process and on-the-ground sales.
The biggest problem that I have found in Baja is how rumors that are based on, well thin air I guess, get started. Things are as they are, why can't
people tell it that way and/or say I don't know when they don't.
Anyway, I am happy to answer any questions and thank you again for the compliments. As I am freezing in Massachusetts it warms me up just remembering
Baja.
jtorres
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surfer jim
Super Nomad
Posts: 1891
Registered: 8-29-2003
Location: high desert
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Well , this is quite a change on the internet....dealing with facts rather than speculation or gossip  .....maybe the start of a new trend...who knows...
Come on NOMADS ...somebody get this and we can have a dedicated CASA de NOMADS to go visit....
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HotSchott
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Registered: 9-4-2003
Location: Sandy Eggo
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People that come to this board thinking that there is some 'greater collective' knowledge are the only people that I know that are disappointed when
they find out that misinformation and less-than expert opinion are regularly exchanged here. What started out as a group of friends exchanging
stories about their Baja travels and experiences has grown into something else along the way.
These days, the same group of people seem to dominate the conversation with mostly negative and synical commentary about their perspective on the
world at large. So much has changed in the world and Baja and the rest of Mexico. I know I get drawn into seeing mostly the negative side of things
as well.
I guess the truly interesting stuff has all been discovered and done. The newcomers 'bill of rights' does not exist. Instead of sharing anything,
this place has become a monument to protectionism where any event or description of someone's 'sacred spot' will get you crucified in words. Maybe
the internet has actually done more harm than good by making information available to the wrong people. Who are the wrong people? Have they been
going to baja for a long time?
It seems like there were more of the right people a while back...At the end of a dirt road that so few knew about. Talking and sharing positive
experiences by the light of a warm fire. Things sure have changed.
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cactivilla
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Warning--Check with Campo owner prior to purchase, we have lost money and time on ownership of this house, campo owner will work with you if he likes
you and offers a Lease in Spanish only, he only considers 10% of 200,000 with increase in lease and payment for back taxes of $5000.00 required to pay
before new lease that may be available. Please post if any question about this.
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CaboRon
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Note: If the lease were not in Spanish, it would not be legal.
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Chamaco
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um...............hows your heart condition?
What shall it profit a man if he gains the whole world yet loses his own soul- J.C.
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surfer jim
Super Nomad
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I was wondering what (if anything) had become of this.....
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cactivilla
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We were going to be the new owner of this house until the conversations with the campo owner/son turned sour as to his request for the cash only for
lease and fees. In response to CaboRon the Lease should be in Spanish as well as English, which he would provide only in Spanish if he would provide
at all. My guess is the house is either going to next bidder(s) or up for Sale---It is my intention for the next buyer beware if money is of value.
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rts551
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I don't understand. What is the problem with cash only for the lease? You could have it translated on your own?????
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fulano
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| Quote: | Originally posted by rts551
I don't understand. What is the problem with cash only for the lease? You could have it translated on your own????? |
I'm not sure either of you understand. In Mexico, only the signed original lease -- in SPANISH -- is the operative legal document. A signed
translation of the lease -- in ENGLISH - would have no legal effect in Mexico. If there was a discrepancy in the wording between the Spanish lease and
the English lease, the English wording would have no legal weight...inadmissible in court.
The Mexican landlord is correct in his position. If I were a landlord, I would not want to have two different versions of a legal document floating
around. I used to run a business where we were required, by law, to have finance contracts in English and Spanish. We put wording in the document that
said the English version is the contract and the Spanish version is just information and is not a binding part of the contract.
If you are not a lawyer, you probably cannot appreciate the problem of having two different documents, both claiming to be "the contract."
[Edited on 7-8-2008 by fulano]
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cactivilla
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Fulano, you may be correct regarding the Lease, although there was more to this conflict than the lease, which we did arrange to get a translation of
the lease when we were moments to completing this deal. Would you have paid over Seventeen Thousand plus (USD) more for this lease over what you had
been expecting to pay?? My guess is the campo owner wanted this house for himself and was very defensive with each call made, he changed the amount of
fees each time we talked to him. Whomever agrees with this arrangment may have a disagreement on anything with the campo owner while living in this
home. If that is what you are willing to do, go for it.
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fulano
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| Quote: | Originally posted by cactivilla
Fulano, you may be correct regarding the Lease, although there was more to this conflict than the lease, which we did arrange to get a translation of
the lease when we were moments to completing this deal. Would you have paid over Seventeen Thousand plus (USD) more for this lease over what you had
been expecting to pay?? My guess is the campo owner wanted this house for himself and was very defensive with each call made, he changed the amount of
fees each time we talked to him. Whomever agrees with this arrangment may have a disagreement on anything with the campo owner while living in this
home. If that is what you are willing to do, go for it. |
Well, I'll tell you cactivilla, I would never enter into that deal under any terms. No matter what you think you had, you would have had absolutely
nothing but a very subordinated position that could have been wiped out at any time. There's probably a whole world of things you don' t understand.
If, for instance, the campo owner had some debt on his property and did not pay it and was foreclosed, your lease would have been wiped out. It is
subordinate to any secured debt on the property. It is also subordinate to any property tax defaults. It is also subordinate to any claims of the
heirs of the father as to who inherited that land (and that is a very common thing in Mexico).
Bottom line, that lease would have had all the substance of a fart in a windstorm. Sometimes the best way to double your money is to fold it and put
it back in your pocket.
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