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Author: Subject: How does land leasing work in Baja?
Bajayan
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[*] posted on 12-28-2014 at 01:21 PM
How does land leasing work in Baja?


Does anyone know the particulars of leasing land in Baja? Specifically from a corporation with clear title? Are there time limits, can it be structured to be perpetually renewable, or renewable for 50 or 100 years if the use meets a certain condition? Anything else one should know?

There is land potentially available for lease, and the intent would be to build on it. Anyone building on it would of course want their structures to be protected by the lease for a long time, while the owners want to make sure the land is being used within certain usage based guidelines or else they'd want to end the lease. Do the laws allow for both sides to be fairly protected?
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DENNIS
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[*] posted on 12-28-2014 at 01:32 PM




Nothing renewable, no matter what anyone says. A lease can be written for no longer than ten years...minus one day. After that it's up to the parties to renew. Nothing other than that is enforceable in court.
For the protections you seek, you should probably hire an attorney who will write a binding lease and take it to a Notario.

Also...you should ask your attorney who your new structures belong to at lease end. And, don't hire the landlords nephew if he claims to be an attorney.



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[Edited on 12-28-2014 by DENNIS]




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Bajayan
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[*] posted on 12-28-2014 at 01:45 PM


So there really cannot be any guarantee on a permanent building beyond ten years?
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[*] posted on 12-28-2014 at 02:27 PM


First rule of buying or leasing land in Mexico, never spend more then you can walk away from. Second rule live where you want for six months so you can get the lay of the land. I have had 2 places in Baja Norte, both on leases, they are the perfect way to lose it all, (see first rule). I would do again too.




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DENNIS
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[*] posted on 12-28-2014 at 02:40 PM


Quote: Originally posted by Bajayan  
So there really cannot be any guarantee on a permanent building beyond ten years?


None that I'm aware of. It's possible corporations may be held to different regulations in the interest of promoting investment, but until you form a corporation, the ten year rule applies.
Be very careful when you are approached with an alternate plan as you probably will be.
Again...as I mentioned above...get an attorney, and be very careful of his/her connections. Blood is thicker than most anything down here.
Also...avoid real estate agents. They lie and play by their own rules.




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[*] posted on 12-28-2014 at 03:19 PM


Why would you spend your money building a house on property you don't own or control??? Rent......you will be happier


Quote: Originally posted by Bajayan  
So there really cannot be any guarantee on a permanent building beyond ten years?




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Bajayan
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[*] posted on 12-28-2014 at 03:32 PM


Hmm, so anyone know more about whether corporations can lease for over 10 years?

If that's a possibility, then I could work out the other issues raised here...

[Edited on 12-28-2014 by Bajayan]
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yellowklr
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[*] posted on 12-28-2014 at 05:17 PM


DONT do it
unless you have a structure you can take with u




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[*] posted on 12-28-2014 at 05:24 PM


have hitch, will travel!:light:

house.jpg - 10kB




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MMc
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[*] posted on 12-28-2014 at 05:58 PM


Building on a lease is the perfect way to lose your investment. If you can't take it with you, You could very easily lose the building or get paid a fraction of what is worth at the end of the lease. Go rent where you want to build and get the lay of the land. You way very well trust the owner, what happens when he dies and you are dealing with the kids?



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DENNIS
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[*] posted on 12-28-2014 at 07:05 PM




Bajayan.......I think you're bound and determined to do what you want to do here.
Best of luck in your adventure.



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[Edited on 12-29-2014 by DENNIS]




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[*] posted on 12-28-2014 at 07:28 PM


Quote: Originally posted by DENNIS  


Bajayan.......I think you're bound and determined to do what you want to do here.
Best of luck in your adventure.



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[Edited on 12-29-2014 by DENNIS]


Yes, --- welcome to the forum and good luck. I hope it works for you.
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Bajayan
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[*] posted on 12-28-2014 at 09:49 PM


I do actually appreciate the warnings and general advice, but I would also really appreciate if anyone knew what the laws are regarding leasing terms from a corporation.

I'd only be interested in looking further into this if the legal situation made sense, and if 10 years is the maximum for leasing land from a corporation, I can't really see a way in which it would make sense.

[Edited on 12-30-2014 by Bajayan]
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durrelllrobert
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[*] posted on 12-30-2014 at 10:46 AM
How does land leasing work in Baja?


I'll let you know in July when my 10th year of leasing ends. :?:



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[*] posted on 12-30-2014 at 11:08 AM


Quote: Originally posted by Bajayan  

I'd only be interested in looking further into this if the legal situation made sense, and if 10 years is the maximum for leasing land from a corporation, I can't really see a way in which it would make sense.

[Edited on 12-30-2014 by Bajayan]


The issue mentioned wasn't "leasing FROM a corporation." It was leasing FOR a corporation for business purposes.




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[*] posted on 12-30-2014 at 07:04 PM


Quote: Originally posted by Bajayan  
I do actually appreciate the warnings and general advice, but I would also really appreciate if anyone knew what the laws are regarding leasing terms from a corporation.

I'd only be interested in looking further into this if the legal situation made sense, and if 10 years is the maximum for leasing land from a corporation, I can't really see a way in which it would make sense.

[Edited on 12-30-2014 by Bajayan]


It seems you've gotten information that you don't really want....and very often folks tend to go into denial and do what they want anyway. I think Dennis has given you the information, not much left except to also wish you good luck.




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Bajayan
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[*] posted on 12-30-2014 at 09:08 PM


Hi Dennis - actually my question starting with my original post has been specifically about leasing "from" a corporation. It sounds like there's a strict 10 year limit on leasing from an individual (natural person), and it seems likely to be the same for leasing from a corporation, but just hoping someone might know for certain. Perhaps you know if there's any difference?

Hi Sweetwater - thanks for the kind wishes. Trust me I won't go into denial, I just think there's a finer point of law I want to clarify if possible.

Durrelllwater, what can I say except good luck! :)
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[*] posted on 12-31-2014 at 08:54 AM


Bajayan - welcome to the forum. I don't know 'the' only answer to your question .. I do know however, that 'an' answer - can/will change depending upon (And not just not limited to the following) (1) Where said land leasing might be taking place and (2) From whom (be it individual or corporation.) Because when a family member dies, other family members may fight about 'their land' and what ensues has the potential to take everything 'you' may have on said parcel .. this being just one possible scenario of course. You may have a wonderful experience - these things can/do happen as well. As an example, ejido property often has layers of issues ...

Lots of regular posters on this and any other 'Mexico' forum often say "Don't invest more than you can afford to walk away from" This is a frighteningly true statement. Some cant afford to walk away, and thus become stuck.

From experience with 'legal issues' in Mexico (Cabo) almost nothing makes sense - and for us, those finer points of law translated to 'more dinero to research that .. present that .. respond to. The level of inconsistencies, scrambled system of 'next' (mordida) can be (was) mind-blowing. Days became years in the blink of an eye.

Not to dissuade you from your undertaking, as I am a firm believer that dreams can and do come true - just fair warning that things are not be as they seem, and once 'in' it may be extremely difficult to get 'out' of legal issue quicksand ..

Whatever you do, thanks in advance for continuing to post on this forum. Many 'lurk' for due diligence and can benefit from the experience sharing that you do.

Peace, love and definitely fresh fish tacos for all. LG




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DENNIS
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[*] posted on 12-31-2014 at 10:06 AM




Bajayan.....I hesitate to answer your question only because interpretation of the law down here can have many variables.
That said....I again suggest consulting an attorney. Just find one you think you can trust. That can be a whole other can of worms.

Would you mind giving us a few more details, such as area.....your purposes with the land, and most important, is an ejido involved in any way? It may prompt some insight from other Nomads which you could use.




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Bajayan
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[*] posted on 12-31-2014 at 09:40 PM


Thanks Dennis and CaboMagic, I will speak to a lawyer (or notary?) on my next trip, which I hope to make soon. If this is still on the table at that time.

There is no ejido involved in any way. As I said, there is clear title, held by a corporation, and this specific land is in Bahia San Quintin.
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