Subtopic	Posts		Updated
	Determining Property Ownership - Tijuana	1		2002/02/18, 07:58 pm

I don't have anything to say yet, but I thought it would be a good thread.

Pauncho

One thing I know is that one must be very careful about the title to the property. It used to be unlawful for anyone other than a Mexican citizen to own property within a certain distance of the borders or seacoasts. I believe that has changed but I've also heard stories of gringos buying lots, building houses thereon and then finding out that the title was not properly done.

RENT!!!!

Actually, I have some Mexican real estate I'd like to sell. PRIME development land! Yeah, yeah, that's the ticket...

There was a story just last year on one of the news magazine shows where many, many Americans lost property they purchased along the Pacific coast in Mexico. Poor bastards got none of their money back. I forget all the details, but the victims included many retirees and many people who had lived there for years.

-Superman-

Here's the short story of buying land in Mexico;
Within 100 km (62 miles) of the border and also within 50 km (31 miles) of the beach is the "zona restringida (restricted zone) . Foreigners (as individuals - corporations have different rules) can not hold title to land in the zone EXCEPT via a bank trust (fideocomiso), which costs as little as U$3,500 for the first year and U$600-1,200/year thereafter (and up). Outside the zone, (No, No, guys, I mean the "restricted" zone, not the ....), a fideocomiso is not required. But in either case, you will need an F-3 or FM-2. But I understand that it's always better to rent the first couple of years or more. Later I will suggest a good book on all of this. CAUTION; If you think you are getting screwed in the zona, just wait til you dabble in real estate.
Pauncho

There's a good book simply titled "How to Buy Real Estate in Mexico"

http://www.amazon.com/exec/obidos/ASIN/1885328265/qid=1001068041/sr=1-1/ref=sr_1_2_1/002-7417071-2868818

written by a lawyer who specializes in this and who has law degrees from Mexican and American Universities. Everything is explained. He has an office in Chula Vista CA I believe.

There are two basic types of land, Ejidos (owned by the Gov and used by the people in communal fashion) and private land. Each type is controlled by different Gov agencies. The fundamental problem that lead to the recent mess outside of Ensenada was that each agency had maps of the area delineating Ejido and private land and the maps differed. The Gringos thought they were leasing land from the Ejido, which is legal, and the Ejido thought it was theirs to lease. Problem was that in fact the land was privately owned by a family in Mexicali. After several years in the courts the decision was made that the land was private and the gringos AND Mexicans were thrown off.

Be careful, agents are not licensed, there is no escrow, and there are plenty of scam artists selling land, most of them Americans, at least in Baja.

Best advice is to rent in the area first and thoroughly learn the process. Then hire a Mex lawyer to do the deal.

Absolutely correct. I bought the book. It's a little hard to read though.

One other piece of advice. True Land titles for Mexico are held in Mexico City. This is something that you will not have mentioned to you in your dealings with realtors here or there. Talk to a Mexican lawyer that deals with land rights before you sign the final paper. Have him request the title from Mexico City and compare it with the paper work you have for the land. If they are different there is a problem. One other thing is get your escuturia (sp) land boundary and rights papers at the same time. The escritura is your true rights to land in Mexico. Do not wait until you get settled in and start building. Getting your FM-2 is what you will need these day to be a little more secure. FM-3 does not guarantee your right for more than one year at a time for the first 5 years or so. I may have these mixed up but one must be certified yearly while the other does not.

Century 21 has the process down pretty good right now. They are also a pretty good source for information. They are currently selling in all parts of Mexico.

There are 2 problems with land in Mexico. The concept of a title search is unknown. (A title search in the US entails someone going to the county recorders office and checking the deed for the property you are buying back for the last 100 years or so. This will turn up any liens, covenants, duplicate claims etc.) TITLE INSURANCE, which you buy in the US in case the title search gets fucked up, is also unknown. Title insurance guarentees you will not lose money even if the land you buy turns out not to belong to the person who sold it to you.

Actually, there are one or two U.S. companies that now sell title insurance for properties in some states in Mexico. It is significant to note that, even with all possible precautions, title is never as clear and secure in Mexico as in the U.S. Additionally, The concept of "squatter's rights" is more significant in Mexico than the U.S. You can't just go away and leave it forever, nor rent it to someone for five years without a rental contract to show intent. I met a guy on the bus in Guadalajara who bought a place in a small town in Jalisco, rented it to someone for years - without a rental agreement - and then had to settle out of court for U$5,000 to get them to surrender their "rights" to the property.
Pauncho

If you go to a realty lawyer in Mexico (not a realty broker) you can order a search for the previous owners in the "Registro Publico de la Propiedad", where all titles to the land are registered in Mexico. If someone has a claim and/or a dispute (foreclosure, judicial restraint, etc.) over your intended property, you can find out and take appropiate actions. You can find a realty lawyer in the Tijuana yellow pages under ABOGADOS. They will specify their services like: "Inmobiliaria" "Compra Venta de Inmuebles" or "Asuntos de Escrituracion y Titulacion". These lawyers can also negotiate a "Fianza" (an insurance bond) with the "sellers" of the property, that will serve as a buyers warranty so you will not get screwed in the process.
All this is of course, expensive. It will add about 10% more to your cost, but it will give you peace of mind. It's your choice...