Documentation
Covenants
LA JOYA DEL MAR DECLARATON OF COVENANTS, CONDITIONS AND RESTRICTIONS ("CC&R’s") La Joya Del Mar is intended to be developed as a residential resort community and offers underground utlities. Set forth below are the La Joya Del Mar Covenants, Conditions and Restrictions (CC&R’s) and construction guidelines which are intended to make La Joya Del Mar a desirable upscale resort community, located in south San Felipe, Baja California, Mexico. Article 1 DECLARATION 1.1 These CC&R’s are made by Villas Alejandrina SDRL De C.V., a Mexican corporation, with respect to that certain real property known as La Joya Del Mar. 1.2 These CC&R’s, and each and every provision set forth herein, form an integral part of the Purchase Contract entered into between Villas Alejandrina SDRL De C.V., a Mexican Corporation, and an Owner, relative to lot or parcel number and/or block number as set forth with particularity in the Purchase Agreement. 1.3 These CC&R’s, and each provision set forth herein, shall be enforceable, shall be binding upon and inure to the benefit of the Declarant and each Owner, and each successor in interest of the Declarant and/or any Owner, and shall be binding upon any Owner, guest, invitee, resident and/or occupant of La Joya Del Mar, or any part of it. Article 2 DEFINITIONS Unless the context otherwise requires, the terms as defined in this "Article" and set forth immediately below shall have the following meanings for the purposes of each provision of these CC&R’s: 2.1 "Declarant" and/or "Villas Alejandrina" means Villas Alejandrina SDRL De C.V., a Mexican corporation, and any successors or assigns to whom it assigns its powers and/or responsibilities. 2.2 "Association" means the La Joya Del Mar Homeowners Association as described with more particularity in "Article 7" of these CC&R’s. 2.3 "CC&R’s" means this document, including the limitations, restrictions, covenants and conditions set forth in this document and/or in any amendments to this document which may be made from time to time. 2.4 "Owner" means the person(s) or entity(ies) holding title to all or an undivided part of any one or more lot(s) or parcel(s) included within La Joya Del Mar. 2.5 "La Joya Del Mar" means the real property known as and comprising La Joya Del Mar, Carretera A Puertecitos, KM 11, San Felipe, Baja California. Article 3 DEVELOPMENT OF LA JOYA DEL MAR The following standards and construction guidelines form an integral part of the Purchase Contract between Villas Alejandrina and an Owner: 3.1 Community Concept La Joya Del Mar is intended to be developed as a residential community consisting of single family homes. 3.2 Development and Construction Criteria 3.2.1 Only custom single family homes shall be built or constructed on any lot or parcel of La Joya Del Mar. However, the Association may, upon receipt of an Owner’s written request, consider permitting the placement of a manufactured home on a lot in La Joya Del Mar. Any such request shall be considered by the Association on a case-by-case basis. No Owner shall place a manufactured home on any lot or parcel in La Joya Del Mar without the prior written approval of the Association. 3.2.2 The use of temporary structures, sheet metal roofs, trailers, etc., upon an Owner’s lot(s) or parcel(s) is prohibited except during the course of constructing any home or permanent structure upon any lot(s) or parcel(s) in La Joya Del Mar. First quality materials shall be used for the construction of any home in La Joya Del Mar as described with more particularity in the Purchase Contract entered into by Villas Alejandrina and an Owner. 3.2.3 The time within which an Owner must begin and/or complete any construction upon the Owner’s lot(s) or parcel(s) shall be determined by the terms, conditions, and provisions of the Purchase Contract entered into by Villas Alejandrina and the Owner. 3.2.4 Building and Construction Setbacks Villas Alejandrina and Owner, understand and agree that the differing topography and geographical characteristics of the lots and parcels which comprise La Joya Del Mar necessitate that the minimum building setback requirements must vary so the objective of these CC&R’s, which is to permit the use and quiet enjoyment of each Owner’s lot(s) or parcel(s), is satisfied. Therefore, the minimum building setback requirements from the property lines of the lots and parcels which comprise La Joya Del Mar are as follows: 3.2.4.1 La Joya Del Mar Lot Numbers _________________ The minimum building setback requirements on La Joya Del Mar Lot Numbers_____________________ shall not be less than __________’ ( _______ feet) from the property lines; 3.2.4.2 La Joya Del Mar Lot Numbers _______________ The minimum building setback requirements on La Joya Del Mar Lot Numbers_____________________ shall not be less than __________’ ( _______ feet) from the property lines. The "La Joya Del Mar Lot Numbers" referred to in provisions "3.2.4.1" and "3.2.4.2" immediately herein-above shall be determined by reference to the " [Lot Map] " attached as Exhibit "A" to these CC&R’s as well by reference to the Purchase Contact entered into by Villas Alejandrina and Owner. 3.2.4.3 Combined Lots or Parcels When two or more lots or parcels are combined, the internal lot lines and associated setback requirements are eliminated, and the buildable area of the combined lots or parcels are combined to form a single buildable lot or parcel which is equal in size to the sum of the build able areas of the two or more original lots or parcels. Lots or parcels without common borders cannot be combined. 3.2.5 Building and Construction Height Villas Alejandrina and Owner, understand and agree that the differing topography and geographical characteristics of the lots and parcels which comprise La Joya Del Mar necessitate that the maximum construction height of any structure built or constructed upon any particular lot(s) or parcel(s) must vary so tthe objective of these CC&R’s, which is to permit the use and quiet enjoyment of each Owner’s lot(s) or parcel(s), is satisfied. Therefore, the following maximum construction height requirements shall be followed at all times: 3.2.5.1 La Joya Del Mar Lot Numbers _________________ The height of any structure, including but not limited to a home, built or constructed upon La Joya Del Mar Lot Numbers_____________________, shall not exceed _______’ (________ feet) above sidewalk level 3.2.5.2 La Joya Del Mar Lot Numbers _______________ The height of any structure, including but not limited to a home, built or constructed upon La Joya Del Mar Lot Numbers_____________________, shall not exceed _______’ (________ feet) above sidewalk level. The "La Joya Del Mar Lot Numbers" referred to in provisions "3.2.5.1" and "3.2.5.2" immediately herein-above shall be determined by reference to the " [Lot Map] " attached as Exhibit "A" hereto these CC&R’s as well by reference to the Purchase Contact entered into by Villas Alejandrina and Owner. 3.2.6 Exterior Color(s) The exterior of any permanent structure upon an Owner’s lot(s) or parcel(s) shall only be of the following color(s), or shades which are substantially similar to the following color(s): white, off-white, yellow, tan, or brown. The Association may, upon receipt of an Owner’s written request, consider permitting the exterior color of a structure upon an Owner’s lot(s) or parcel(s) to vary from the requirements of this provision. Any such request shall be considered by the Association on a case-by-case basis. However, no Owner shall cause the exterior of any structure upon their lot or parcel to vary from the terms of this provision without the prior written approval of the Association. 3.2.7 Improvements, Alterations, or Modifications Any alteration, modification, or improvement which substantially changes or alters the exterior appearance of a permanent structure upon an Owner’s lot or parcel, including but not limited to a home, shall not be undertaken without the prior written approval of the Association. 3.2.8 Walls and Fencing Villas Alejandrina and Owner, understand and agree that the differing topography and geographical characteristics of the lots and parcels which comprise La Joya Del Mar necessitate that the height requirements of any wall and/or fencing erected or built upon any particular lot(s) or parcel(s) must vary so that the objective of these CC&R’s, which is to permit the use and quiet enjoyment of each Owner’s lot(s) or parcel(s), is satisfied. Therefore, any wall or fencing erected or built upon an Owner’s lot or parcel shall at all times comply with the following requirements: Any wall or fencing erected, built, placed or maintained on an Owner’s lot(s) or parcel(s) shall comply with the following requirements: 3.2.8.1 La Joya Del Mar Lot Numbers _________________ The height of any portion of a wall or fencing erected, maintained, or built upon La Joya Del Mar Lot Numbers_____________________, shall not exceed _______’ (________ feet) above sidewalk level; 3.2.8.2 La Joya Del Mar Lot Numbers _______________ The height of any portion of a wall or fencing erected, maintained, or built upon La Joya Del Mar Lot Numbers_____________________, shall not exceed _______’ (________ feet) above sidewalk level. The "La Joya Del Mar Lot Numbers" referred to in provisions "3.2.8.1" and "3.2.8.2" immediately herein-above shall be determined by reference to the " [Lot Map] " attached as Exhibit "A" hereto these CC&R’s as well by reference to the Purchase Contact entered into by Villas Alejandrina and Owner. 3.2.9 Walkways Any walkway upon a lot or parcel, shall be built, or caused to be built, solely by the Owner of said lot or parcel. Any costs or expense arising from or related to the construction or maintenance of any such walkway shall always be entirely at the Owners’ own cost and expense. 3.2.10 Exterior Lighting Any exterior lighting on an Owner’s lot(s) or parcel(s) shall be soft, indirect illumination, white or yellow in color, and shall not obstruct the evening stargazing or view of a neighboring Owner. 3.2.11 Landscaping and Vegetation Any landscaping or vegetation, including, but not limited to plants, trees, bushes and/or flowers, shall not at any time block, obstruct, or otherwise interfere with the view of any neighboring Owner. Said landscape or vegetation shall be maintained at all times so as to comply with the purpose of this provision and the general purpose of these CC&R’s, which is to permit the use and quiet enjoyment of each Owner’s lot(s) or parcel(s). No Owner shall plant any tree, bush, or shrub on his lot(s) or parcel(s) that may damage underground installations (including, but not limited to, underground water or electrical installations), or La Joya Del Mar common area sidewalks or walking areas. 3.2.12 Obstruction or Damage Caused By An Owner To Public Roadways, Landscaping, or Other Owner’s Real or Personal Property At no time during any ongoing construction taking place on an Owner’s lot(s) or parcel(s), shall the Owner and/or any contractor or subcontractor hired or retained by the Owner, cause to be blocked any adjacent lot, parcel, or public roadway. An Owner shall be liable for any and all damage(s) caused by them self, or by any contractor or subcontractor retained by said Owner, or any guest or invitee of said Owner, to a paved street, sidewalk, landscaping, La Joya Del Mar common area, or any other work performed by, or caused to be performed by, Villas Alejandrina and/or the Association, and/or any neighboring lot or parcel and/or any personal property thereon. 3.2.13 Owner’s Use of Pre-Approved Developers and Contractors The development of any Owner’s lot or parcel, and/or construction of any permanent structure upon said lot or parcel, including but not limited to the construction of a home, shall be performed only by one or more of the "Pre-Approved Developers And Contractors" as described and defined with more particularity in the Purchase Contract entered into by Villas Alejandrina and the Owner. 3.2.14 Noncompliance Where the construction, building, alteration and/or improvement of a home, permanent structure, fencing, and/or wall is undertaken or completed by an Owner on his lot(s) or parcel(2), and which is not in compliance with the provisions of these CC&R’s, the Association may either remove the home, permanent structure, fencing, and/or wall, or remedy the noncompliance at the Owner’s own expense. However, no non-complying construction, alteration, or improvement shall be remedied by the Association without either the consent of the Owner of the lot or parcel or an order obtained by a Mexican court of competent jurisdiction. Article 4 USE OF LA JOYA DEL MAR 4.1 Parking 4.1.2 Except as otherwise delineated in "4.13" herein-below, vehicles may be parked on a driveway of any lot or parcel. 4.1.3 The parking of work trucks, boats, mobile homes, commercial vehicles, campers, recreational vehicles, trailers and/or semi-trailers, or other similar vehicles, on a driveway is permitted only where the parking of any such vehicle does not block, obstruct, or otherwise interfere with the view of a neighboring Owner or the view from a La Joya Del Mar common area, except: (i) where required temporarily for construction, repair, refinishing, or maintenance of on the lot(s) or parcel(s); or (ii) where required temporarily for the moving of furnishings, equipment, or supplies into or off lot(s) or parcel(s) or La Joya Del Mar. 4.2 Pets and Animals Only cats or dogs are permitted to be kept or maintained by an Owner upon their lot(s) or parcel(s). However, small animals which are confined at all times within a cage or small enclosure (birds, fish, etc.) are permitted. 4.2.1 No Owner shall keep or maintain more than two (2) dogs or two (2) cats at any one time on his lot or parcel. An exception shall be made for any cat or dog owned or kept by a person visiting said Owner, but for no more than thirty (30) consecutive days unless prior written approval is obtained from the Association. 2. Any dog owned, kept, or maintained by an Owner must be kept on a leash at all times when not on the Owner’s lot(s) or parcel(s). 3. An Owner shall keep the yard of his lot(s) or parcel(s) clean of any pet feces and/or waste. 4. If a dog is maintained or kept by an Owner on his lot(s) or parcel(s) at any time: (a) The dog shall be tied, tethered, or otherwise restrained at all times in a manner which prohibits the dog from leaving the Owner’s lot or parcel; or (b) The Owner’s lot or parcel shall be fenced at all times in manner that prohibits the dog from leaving the Owner’s lot or parcel. 5. An Owner who maintains or keeps a dog on his lot(s) or parcel(s), or permits a dog to be kept on said Owner’s lot(s) or parcel(s), shall prevent the continuous barking or making of other loud noises by the dog. 4.2.6 No unleashed dog(s) are permitted in La Joya Del Mar’s common areas. 4.2.7 Any dog, cat, pet, or animal, must be permanently removed by the Owner from La Joya Del Mar within forty-eight (48) hours if said dog, cat, pet, or animal is determined by the Association to be a nuisance. 4.3 Fireworks, Firearms, Hunting and Nuisance 4.3.1 No firework of any kind may be used or discharged between the hours of 10:00 p.m. and 8:00 a.m. anywhere within La Joya Del Mar. 4.3.2 Firearms are not permitted in Mexico. 4.3.3 No hunting of any kind is permitted anywhere within La Joya Del Mar at any time. 4. Activities, noises, uses, and improvements that are noxious, illegal, or offensive; or which may be or become a nuisance, or cause unreasonable embarrassment, disturbance, or annoyance to other Owners in the quiet enjoyment of their lot(s) or parcel(s), or which may adversely affect the availability or cost of insurance, or which may impair the structural integrity of any structure, is prohibited. 4.4 Signs, Advertising and Billboards The erection or maintenance of any sign or billboard upon any Owner’s lot or parcel, not contained within a home, and which is visible from any other Owner’s lot(s) or parcel(s), or from a La Joya Del Mar common area, is prohibited. The sole exception(s) shall be as follows: 4.4.1 Such signs and notices as may be required by legal proceedings. 4.4.2 Appropriate safety, directional, and/or identification sign(s) installed, erected, or maintained by the Association, Villas Alejandrina, or as required by law. 4.4.3 Not more than one (1) "for sale" sign or "for rent" sign. The Association shall have the authority to set the standards for the location, dimensions, and design of all such signs. 4.4.4 Such residential identification signs, including addresses or unit numbers and the name of the Owner, as specifically approved by the Association or Villas Alejandrina. 4.4.5 The temporary erection or maintenance of one (1) sign or billboard which is political in nature is permitted. However, the Association shall have the authority to set the standards for the location, dimensions, and design of all such signs, as well as the period of time any such sign or billboard may be kept or maintained on a lot or parcel. 4.5 Mining Mining, quarrying, boring, or exploring for or removing natural resources or subsurface materials is prohibited. 4.6 Insects and Rodents An Owner is prohibited from doing any act, including leaving food or garbage exposed, which attracts ants, termites, rodents, or other pests onto or into an Owner’s lot(s) or parcel(s), or La Joya Del Mar. 7. Trades, Commerce, or Businesses The following is prohibited: The conducting of any trade, commerce, or business on an Owner’s lot(s) or parcel(s) which: (i) changes the overall residential use of a lot or parcel; or (ii) involve numerous in-person calls by customers, employees or deliverymen; or (iii) require signs or other promotional advertisements except for the name of the business on mailboxes; or (iv) require the storage of large amounts of bulky goods or inventory; or (v) requires more than three parking spaces at any one time on any one lot or parcel or in the La Joya Del Mar common area parking lots. Article 5 USE OF LA JOYA DEL MAR’S COMMON AREA RECREATIONAL FACILTIES 5.1 The use of the La Joya Del Mar common area pool, jacuzzi, clubhouse and tennis courts is restricted to Owners, their invitees and guests. 5.2 An Owner, or their invitee or guest, who is at least eighteen (18) years or older, must, at all times, accompany any Minor when said Minor uses the La Joya Del Mar common area pool, jazuzzi, and/or tennis courts. For purposes of this "Article" of these CC&R’s, a "Minor" shall mean any person fourteen (14) years of age or younger. 5.3 Appropriate bathing/swim suits or trunks shall be worn at all times by any person using the La Joya Del Mar common area pool, jacuzzi or clubhouse. Article 6 SUBLEASING/SUBLETTING/RENTING 6.1 An Owner’s subleasing, subletting, and/or renting of a home to a person not named on a current deed, during any period when the Owner is not residing at their home, is permitted. 6.2 Any person who subleases, sublets, and/or rents an Owner’s home is subject to all the terms and provisions of these CC&R’s at all times. 6.3 An Owner must provide the Association with the address and telephone number where the Owner may be contacted at all times while their home at La Joya Del Mar is being subleased, sublet, or rented. 6.4 Vacant lots or parcels in La Joya Del Mar may not be subleased, sublet, or rented at any time. Article 7 LA JOYA DEL MAR HOMEOWNERS ASSOCIATION 7.1 The La Joya Del Mar Homeowners Association comprised of each Owner will be formed and headed by Villas Alejandrina within a reasonable period of time after the first lot or parcel is sold. Election of the Association officers will be held. 7.2 Each Owner, by virtue of being an Owner and during such time as such Owner remains an Owner, shall be a member of the Association. No person or entity shall be a member of the Association other than by virtue of being an Owner. When more than one (1) person or entity holds an ownership interest in a lot or parcel, all such persons or entities shall be a member of the Association. Every Owner and member of the Association is obligated abide by the rules and regulations set forth in these CC&R’s as well as any by-laws or Association statutes enacted by the Association at any time. 7.3 Neither membership in the Association nor the right to vote may be severed from any lot or parcel, and any sale, transfer, or conveyance of an interest in a lot or parcel to a new Owner shall operate automatically to transfer membership in the Association and voting rights. 7.4 Each Owner shall have one (1) vote for each lot or parcel owned. Each Owner may vote on all matters properly submitted to the Association. Voting on behalf of any Owner not present at a meeting may be by written proxy or absentee ballot. 7.5 In order to promulgate, change, revise, or add any provision to these CC&R’s, to any by-laws subsequently enacted by the Association, or any Association statutes which subsequently become effective, the majority rule will prevail. 7.6 Current Association dues are $ ______.00, U.S. dollars, or the equivalent sum in Mexican pesos, per year. The Owner may pay said sum monthly, quarterly, or yearly at prearranged schedules. Collection of the dues shall commence on ______ ______, 200___. The Association dues shall only be increased where approved by a majority vote of Owners with a quorum of twenty (20) Owners present at the meeting where such vote takes place. Penalty for late payment of an Owner’s dues shall be _____% per annum. 7.7 Where an Owner fails to pay any outstanding or overdue Association dues within a reasonable period of time, the Association shall have the authority to institute such legal proceedings in Mexico against said Owner as is necessary to force Owner’s payment of any and all overdue dues, or to force the sale of the Owner’s lot(s) or parcel(s) and the overdue dues shall then be taken from the proceeds of such sale. 7.8 Matters concerning the organization, powers, and duties of the Association not specifically addressed in these CC&R’s shall be discerned by referring to the Association By-Laws and/or any Association statutes which may be enacted. Article 8 LIMITATION OF LIABILITY 8.1 Each Owner agrees that all personal property, including, but limited to any home, upon the Owner’s lot(s) or parcel(s) shall be at the Owner’s own risk and neither Villas Alejandrina nor the Association shall incur any liability for any loss or injury with respect to any property or persons as a result of, caused by, related to, or arising from, in any way, the construction of a home or any structure upon a lot or parcel, fire, explosion, flood, smoke, water intrusion or escape, theft, changes in underground water level, change in tide level, pounding or encroaching surf, water related storm damage, damage caused by or arising from wind, hail, hurricanes, lightening, aircraft, vehicles other than those operated by Villas Alejandrina and/or the Association, earthquakes, damage caused by insects or rodents, unless caused by the intentional acts or negligence of Villas Alejandrina, the Association, and/or their respective employees or agents. Each Owner further agrees to defend, indemnify, and hold harmless, Villas Alejandrina, the Association, and their respective employees or agents, from any and all liability arising from or related to, in any way, any act or omission of the Owner, the Owner’s family member(s), the Owner’s guests or invitees, the Owner’s employees or agents, and/or any person or entity to whom an Owner sublets, subleases, or rents their home, or permits to use or enter, for any purpose, the Owner’s lot(s) or parcel(s). Article 9 AADITIONAL PROVISIONS 9.1 Observance of these CC&R’s Each Owner shall comply with the provisions of these CC&R’s and shall be responsible for compliance by such Owner’s family, occupants, agents, guests, contractors or subcontractors, employees, tenants or subtenants, or any other person coming within La Jolla Del Mar at the request of and/or with the consent of such Owner. If a lot or parcel has more than one (1) Owner, all Owners are jointly and severally liable for all the obligations of the Owner. 9.2 Nuisances Every act or omission whereby any provision of these CC&R’s is violated in whole or in part, is hereby declared to be a nuisance. 9.3 Cumulative Remedies The remedies provided for in these CC&R’s are cumulative and not exclusive. 9.4 Nonwaiver The failure of Villas Alejandrina, the Association, or an Owner shall not constitute a waiver of any right to enforce that provision or any of these CC&R’s. 9.5 Construction All provisions of these CC&R’s shall be liberally construed, together, to promote and effectuate the beneficial operation of La Joya Del Mar. 9.6 Compliance With Law No provision of these CC&R’s shall be construed to excuse any person from observing any applicable law or regulation of any Mexican governmental body. 9.7 Severability The provisions of these CC&R’s shall be deemed independent and severable, and the invalidity or partial invalidity of any provision, or portion thereof, shall not affect the validity or enforceability of any other provision in these CC&R’s. 9.8 Number and Gender The singular shall be the plural and the plural the singular unless the context requires the contrary, and the masculine shall include the feminine and neuter, as the context requires. _________________________ __________________________ On behalf of Villas Alejandrina Owner SDRL De C.V. Dated: ___________, 200___ Dated: ____________, 200___
Title Insurance
Title Insurance Purchasing a home, whether a primary residence or a vacation home, is usually one of the largest investments made during a lifetime. After closing on such significant investment, you want to be certain that you are protected from potential loss. One of the least understood but most important aspects of protecting a real estate investment is making sure that the title to the property is secure. When purchasing a property, instead of purchasing the actual building or land what you are really purchasing is the title to the property, the right to exclusively own, occupy and use the space. These rights that you purchase may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss. To be certain that your property is not at risk to these of issues it's important to acquire a title insurance policy. *Escrow Service Escrow is a fund administration agreement for a real estate transaction, in charge of an impartial third party obligated to disburse such funds, all in accordance with the previous and written instructions delivered by the parties involved. Once the conditions that originate the disbursements of funds are fulfilled, we will send the Buyer and Seller Closing Statements; which are documents that reflect the funds delivered, to be disbursed and beneficiaries of the same. After receiving the Closing Statements duly signed we will proceed to disburse the funds, finishing with the Escrow Service procedure. *Closing Coordination Stewart Title Baja provides a host of coordination and administrative activities that help streamline the real estate transaction process. Acting as a single point of contact for closing documentation, Stewart closing coordination services will guide you trough the Mexican Real Estate closing process. Stewart's closing coordinators will manage the details of your closing, including coordinating with local attorneys, banks and notarios. This coordination service allows you to focus on enjoying your real estate investment as opposed to having to deal with all of the details of a foreign real estate transaction. * Escrow and Closing Coordination Services are to be provided upon request of Client / Purchaser. Stewart Title Baja Centro Corporativo Centura Blvd. Agua Caliente 10611 Oficina 210 Col.Aviacion Tijuana, Baja California Mexico 22420 From the U.S. : (619) 819-5591 www.stewartbajamex.com
Fideicomiso
FIDEICOMISO OR BANK TRUST (Explanation from Stewart Title) The "Restricted Zone" bank trust, known as fideicomiso in Mexican legislation, is the only legal recourse that offers judicial security to each one of the parts involved in it. This contract enables individuals and corporations, regardless of nationality, to purchase the right to legal and risk-free use and enjoyment of a property within the restricted zone. The Political Constitution of the United Mexican States, in its 27 article, section I, says that foreigners may not, under any circumstances, own land or water on the corridor comprising 62 miles from the border or 31 miles from the beach (which make up the restricted zone). However, the Foreign Investment Law, article 11, enables foreign investors to acquire rights over real estate in the restricted zone through fideicomiso, as long as the Ministry of Foreign Affairs grants permission. According to the fideicomiso, the fiduciary (which in Mexico refers to financial entities authorized by the General Law of Credit Institutions) receives one or several real estate properties and allocates them to the legal holders. How does it work? The land passed on to the fiduciary, as well as the constructions, buildings or work in progress involved, form the fideicomiso. The process entails benefits that are very similar to conventional ownership rights. Beneficiaries obtain the privilege of using and enjoying the property for personal, residential or leisure purposes. In other words, he is in possession of the property and can even live in it, just like an actual owner. He also has the right to make improvements, develop new constructions or modify existing ones, as long as he presents all required licenses and permits to the fiduciary. He may also rent the property to any person or entity, according to the permission granted by the Ministry of Foreign Relations. Beneficiaries may transfer the right and negotiate its price freely, without the intervention of the banking institution. The fiduciary should only intervene in the formal legal procedures transferring the rights. He also has the power to "sell" the property to Mexican nationals, individuals or corporations. The first step in the process is to obtain permission, in writing, from the fiduciary. The transfer can be done to the same beneficiaries, if they are granted Mexican nationality according to the law. In either case, they may negotiate the amount for the transaction on their own. Beneficiaries can name substitutes in case of death and they may enjoy the benefits simultaneously or subsequently. In this case, the fiduciary should act as a good parent, saving the cost of lawyers, notaries, agents and other people who may play a part in the succession, whether legal or through will, as well as time. The fiduciary, fulfilling the will of the beneficiaries, must submit the property to the people appointed as substitute beneficiaries, through a process that is much more efficient than an inheritance. Important details Because there are no relationships, emotional commitments, interests or attachments to the beneficiaries, the fiduciary acts as an impartial part in the process. The restricted zone fideicomiso lasts for 50 years, which can be terminated at any time by agreement of the parts. The beneficiary may request another 50-year extension, which must be processed through the banking institution at least 90 days before the end of the fideicomiso. Additional properties may be added to an existing contract. The only condition is that the land be adjacent to the property already in the fideicomiso. Permission must be requested from the Ministry of Foreign Affairs As you can see, the restricted zone fideicomiso offers judicial security, benefits, reliability and, above all, peace of mind for whoever acquires the use and enjoyment of a property within the restricted zone. Who’s involved in a fideicomiso? * Bank trustee / provider. Person or entity transferring one or more real estate properties into a fideicomiso property * Beneficiary. Person or entity that can receive the benefits of a fideicomiso. Several beneficiaries may be established and they may profit simultaneously or in succession. * Fiduciary / bank. Financial institution that receives the property to manage it in fideicomiso. NOTARIOS PUBLICOS IN MEXICO (NOTARY PUBLIC IN MEXICO) Who are Notary Publics. Notary Publics in Mexico are first licensed attorneys in Mexico, then they apprentice in notaryship law and practice with another notary public for a period of time, then pass a notary public examination and thereafter are appointed by the Governor of their state to act as a Notary Public in a given geographical location (a town, a district). What do they have. Notary Publics are invested with the "public faith" granted by government and can assert this Public Faith in reference to the existence of an event they witnessed, the existence of certain documents, the existence of official acts, the content of a contract, the signature of a party, and as well the due representation of an agent on behalf of a principal. As one can see, their authority is substantial. The Notary Publics normally perform their duties either in the issuance of a Public Instrument ("Escritura Pública") that will contain that sought by the parties or they will affirm to the signature of a party that signs a document before them. The public notary in Mexico is responsible for the transfer of real estate. The notary's responsibilities are much greater than what we are familiar with in the United States. The notary in Mexico is appointed by the governor of the state and the executive branch of the federal government of the particular state. A notary is an attorney who has additional specialization and has passed an extensive exam. He/she is appointed for life.
