   
HOW TO OWN PROPERTY IN MEXICO
The magic of the Baja lies in its amazing beauty and history. The fascinating story of property ownership in Baja is as alluring as the seas that surround it. In 1533 Spanish galleons sent by Cortez accidentally discoverd the lower southern Baja peninsula, making contact with its native people. Soon after their discovery, Spain created the Manila Galleon Route from Acapulco to the Phillipines, sending their goods past the shores near Los Cabos. Pirates under the command of buccanners such as Francis Drake and Thomas Cavendish laid in ambush, waiting for the Spanish treasure ships following the route.
In 1821 Mexico, having had its fill of Spanish rule, declared its independence. Spain conceded without too much of a fight and the Baja became part of Mexico. Four years later, Daniel Webster offered to buy the Baja Peninsula for twenty million dollars, but Mexico refused. President Polk upped the offer by 20 million but his offer met the same fate. After the war betweeen US and Mexico for the California territories, the US became disinterested in Baja, clearing the way for the signing of the Treaty of Guadalupe Hidalgo after 2 years of war.
In the new constitution of 1914 Article 27 was included and prohibited foreign ownership of any land with in 31 miles of any coastline and 62 miles of any border. Although not too restrictive on the mainland of Mexico, the article had tremendous impact on Baja, making the land virtually off limits to foreign ownership.
To get around the law, foreigners who wanted to live in Baja's paradise leased the land for a period of 10 years from the owners of desirable beach property. They could then re-lease the land for an additional 10 years time period. (This system was legal but was so abused that it gave "owning" property in Mexico a bad name).
With prospects of tremendous tourism dollars an elightened government under President Luis Echeverria Alvarez wrote a presidential decree allowing Mexican bank's to hold property "In trust" for foreigners It's called a Fideicomiso (Fee-day-e-co-miso) and you can consider it as iron clad as the deed to your home in the United States and Canada.
The Fideicomiso designates the buyer of the property as the Primary Beneficiary of the Fideicomiso / Deed of Trust. The name of the property is placed under the name of the bank selected by the buyer, as his trustee. The bank administrates the property in accordance with the instructions from the Buyer / Primary Beneficiary. The Primary Beneficiary enjoys the same rights of ownership as does any Mexican Citizen. You can build on the property, tear down existing structures, modify them, rent, lease or sell at anytime conforming only to the country's general laws which are established for all persons, being foreign or national.
   
The term of the Fideicomiso / Trust is for 50 year terms renewed in perpetuity automatically renewable by the law. IN OTHER WORDS, title to the property may rest in one beneficiary ownership indefinetly which protects heirs and your investment. Today US Title Insurance and US Mortgage Financing are available for properties in Mexico making it easier and more secure than ever before to own here in Los Cabos Mexico.
It's Safe and It's Easy. Let me help you find your piece of paradise.
YOUR Los Cabos Real Estate Professional,
Connie Meyerhoff
BAJA PROPERTIES
connie@bajaproperties.com
From USA and Canada 011-521-624-122-2237 or 1-480-393-0639
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