FACTS

Q: Should I purchase now or wait until Beyax is fully developed?
A: The ulimate decision is unique to each buyer.  However at this early stage of development pre-sale prices and land-owner financing is available.  The more developed the land gets, the more it shall appreciate and value/prices increased.  Please  contact Nynke for pre-parcel discount, at: avalonvisions@gmail.com

Q: Can foreigners own land in mexico?
A: Yes, a title is assigned to a Mexico bank trust in your name (fideicomiso) for up to 50 years, renewable apon expiration.

Q: What is a Trust institution?
A: In Mexico, a Trust institution is a banking institution that is authorized to open 'fiduciary' accounts and conduct operations as Trustee.  The Trustee holds legal title to the real estate property during the term of the trust, and is also empowered with rights and powers necessary to achieve the objectives of the contractual agreement creating the trust, for the benefit of the trust beneficiaries.

Q: What are the characteristics of a Trust agreement?
A: In the trust deed, the present owner of the real estate would appear as the settlor (fidelcomitente) and would thereby convey title to the real estate to the Trustee who will hold title to the property during the life of the trust (50 years) for the benefit of the Beneficiary (fidelcomitente), the person having absolute use and availabilty of the property.

Q: What are the requirements?
A: 1.  A copy of the real estate title or deed indicating the exact surface area, measurements and boundaries, a free of lien certificate, receipts of federal, local or municipal taxes (seller provides these documents).
     2.  Your name, nationality, occupation, address and phone number.  Copies of your passport, immigration papers, phone or other service bill addressed to your address.
     3.  The name, nationality, address, and phone number of the substitute beneficiary in case of death of the primary beneficiary during the life of the Trust (optional).
     4.  The agreed purchase price.

Q:  What happens if the beneficiary of the trust dies during the legal period of the trust?
A:  The Beneficiary has the right to appoint substitute beneficiaries at the moment of signing the trust or in a later time.  The substitute beneficiaryshall recieve all the rights and obligations that arise from the trust if the primary beneficiary dies during the life of the trust.  With this designation of sustitute beneficiaries, your heirs will not need to follow any probate proceeding before the mexican courts, which could take time and cost fees.  They would only have to give notice to the bank of the deceased, show the death certificate and their identification papers.  Then the bank will accept and register them as the new owners (beneficiaries) of the trust property, without any cost.

Q:  How long does a trust remain in effect and can it be renewed?
A:  It is renewable at the end of its 50 year term and for additional periods of 50 years each.  The law provides that if an application is filed no more than 360 days or less than 181 days before the end of the original trust, the Secretary of Foreign Relations must issue a new trust permit, effective for an additional term of 50 years.  The trust can be renewed for perpetuity.

Q:  Can I sell or transfer my interest in a trust?
A:  A trust interest must be sold or transferred much like any other interest in real estate property.  Upon the sale of an interest in real estate held under a trust, the Secretary of Foreign Relations is required by law to issue a new trust permit to the buyer.  If property held under a trust is sold to a Mexican national, the trust can be terminated and the mexican national may then own the property in fee simple.

Q:  Are Mexican banks the only institutions that can hold a trust on behalf of foreign investors?
A:  Yes, however you have the right to choose which bank to hold your trust.  The trust is not an asset of the bank.  Trusts also allow foreign investors to participate in other sectors of the Mexican economy.  Foreign investors are required to use trusts to aquire certificates of participation representing shares of companies listed on the mexican stock exchange.

Q:  What are the benefits of starting a mexican corporation? 
A:  1.  You can work, trade or manage any business in Mexico.
     2.  You can link your mexican corporation with your international corporations for tax advantages.
     3.  The coporation can own land without a trust.
     4.   You can employ yourself through your mexican corporation and aquire mexican residency papers or a mexican green card.

Q:   Is this an intentional community, will there be meetings, co-ownership, etc?
A:   Each family decides what's right for them, there are no regular meetings.  It is optional to be in co-ownership.

Q:   Are there building restrictions?
A:   There are ecological building guidelines, please contact Nynke for more info.

Q:   What are the property taxes?
A:   Property taxes are approximately $100 US, per hectare, per year.

Q:   Does everyone have to drill their own well?
A:   No, you should gather your neighbors and share the same well.

Q:   What process follows?
A:   Upon receiving the information and documents described above, the Trustee will proceed to apply at the at the Foreign Affairs Ministry (Secretaria de Relaciones Exteriores) for the permit authorizing the execution of the trust deed.  Once the permit has been issued by the Foreign Affairs Ministry, then the Trustee will be able to execute and formalize the the trust deed before a mexican notary public.  Mexican notary public offices have a greater legal status and competence than in the United States.  The notary public is an attourney at law who is authorized by the state goverment to, among other things, grant final formality to the title transfer process in his protocol book.  The resulting document taken from thisw protocol book (the trust deed) is registered at the corresponding Public Registry of the property, and it will show evidence of the title.  In the event that you cannot be present at the execution of the trust deed before the notary public, a duly empowered representative may execute the trust deed on your behalf.  Powers of attourney for representatives must be granted in compliance with mexican formalities including its formalization before a mexican notary public.

Q:   What rights and obligations does the beneficiary assume upon the signing of the trust deed?
A:   As the trust beneficiary, you will have the use and possesion of the property, that is, that you may live on the real estate, undertake any alterations and improvements subject to  any applicable limitations and/or requirements stipulated in laws and regulations, such as zoning and constuction regulations among others.  You also have the capacity to instruct the trustee on mortgaging, leasing, and selling your real estate.  You may also instruct the trustee to transfer your beneficial rights to another person or corporation, or perform any other acts that derive from ownership.  If you sell the land property to another foreigner, you may assign your beneficial interest in the trust to the new purchaser, or instruct the trustee to convey the property to a newly formed trust for the benefit of the new purchaser.  This assignment of rights must be formalized through a Mexican notary public, prior to the payment of federal and local taxes and fees that arise from the transfer of beneficiary rights.  You will be obliged to pay the duties on the real estate, such asreal estate and water service taxes, power supply fees, etc... aswell as the trustee's annual administration fee.

Q:   Is it possible to obtain title insurance from an American company to safeguard my investment?
A:   Yes, many U.S. companies underwrite land in Mexico.

Q:   Can I obtain my land through a bank that is linked with an american bank?
A:   Yes, many Mexican banks are affiliated with international banks and act as one corporation or two linked corporations.  There are Mexican banks that are affiliated E and American banks.

Q:   What does a Mexican attourney charge to finalize a trust? 
A:   Generally between 1000- 3000$ US per contract.

Q:   I've heard you need a Mexican partner to obtain land.
A:   The North American Free Trade Agreement (NAFTA) and the Foreign Investment Law (FIL) lifted bans on foreign ownership in Mexico.  You no longer need a paartner to obtain a trust.

Q:   How long can foreigners stay in Mexico?
A:   There is no visa requiredfor U.S., Canadian and E.U visitors.  They can stay inbetween thirty days and six months, as tourists in Mexico.  The precise time frame is determined apon arrival by the Mexican immigration authorities.

Q:   If Iwant to live and work there, what do I need to do?
A:   Apply for a Mexican green card, which permits employment and residency.

Q:   If I apply for a Mexican green card do I need to give up my American passport?
A:   No.

Q:   I've heard it helps to start a mexican corporation, what does that entail? 
A:   1. Three possible names for the corporation.
      2.  Two people- both can be foreigners or not.
      3.  Identification papers.
      4.  Approximately 1300$ US.

Q:    Can we sub-divide our land?
A:    It depends on the size of your parcel.  There is a low-density limit of one home per hectare (2.4 square acres).  You can build on up to ten percent of your land. 

Q;     Can more than one name or family be on the title?
A:     Yes, you can have as many names as you like on the title.

Q:     Is there electricity?
A:     Beyax is off the grid.  Eco-electricity is permitted solar, wind and hydro-electric.

Q:     Is there drinking water?
A:     There is abundant underground fresh water.  Most people drill wells.    This water must be filtered in order to be drinkable because of its high mineral content.

Q:     How much does it cost to drill a well?
A:     The cost is approximately 1000$ US.

THIS PAGE IS FOR GENERAL INFORMATION ONLY AND IS NOT INTENDED AS LEGAL COUNSEL.