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Can someone tell me the difference between of Power of Attorney and an Assignment of Rights in Mexico, specifically how they pertain to "purchasing" Ejido land? Thank you.
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Different Legal Documents
#2 Ian
Posted 04 August 2006 - 08:47 AM
A POA gives the beneficiary the ablilty to sign all necessary documents related to the land. Sometimes these are accepted by the Ejido and sometimes not. You should check directly with the Sayulita Ejido to see if POA's are currently being accepted for transferring Ejido land.
An assignment of rights is usually made up of a presta nombre "assigning" his/her Ejido rights for a certain piece of land to you (the foreign owner.) Since foreigners cannot owner Ejido land rights, the documents is essentialy worthless in any legal situation. However, this document can spell out a basic understanding between a presta nombre and owner which can help prevent any compensation or problems/misunderstandings at a later date.
Be sure to get both documents when purchasing Ejido land. Also, make sure you receive both original copies of the "cession de derechos" upon completion of the sale.
Good luck
An assignment of rights is usually made up of a presta nombre "assigning" his/her Ejido rights for a certain piece of land to you (the foreign owner.) Since foreigners cannot owner Ejido land rights, the documents is essentialy worthless in any legal situation. However, this document can spell out a basic understanding between a presta nombre and owner which can help prevent any compensation or problems/misunderstandings at a later date.
Be sure to get both documents when purchasing Ejido land. Also, make sure you receive both original copies of the "cession de derechos" upon completion of the sale.
Good luck
#3 Guest
Posted 04 August 2006 - 09:11 AM
Ian, on Aug 4 2006, 08:47 AM, said:
A POA gives the beneficiary the ablilty to sign all necessary documents related to the land. Sometimes these are accepted by the Ejido and sometimes not. You should check directly with the Sayulita Ejido to see if POA's are currently being accepted for transferring Ejido land.
An assignment of rights is usually made up of a presta nombre "assigning" his/her Ejido rights for a certain piece of land to you (the foreign owner.) Since foreigners cannot owner Ejido land rights, the documents is essentialy worthless in any legal situation. However, this document can spell out a basic understanding between a presta nombre and owner which can help prevent any compensation or problems/misunderstandings at a later date.
Be sure to get both documents when purchasing Ejido land. Also, make sure you receive both original copies of the "cession de derechos" upon completion of the sale.
Good luck
An assignment of rights is usually made up of a presta nombre "assigning" his/her Ejido rights for a certain piece of land to you (the foreign owner.) Since foreigners cannot owner Ejido land rights, the documents is essentialy worthless in any legal situation. However, this document can spell out a basic understanding between a presta nombre and owner which can help prevent any compensation or problems/misunderstandings at a later date.
Be sure to get both documents when purchasing Ejido land. Also, make sure you receive both original copies of the "cession de derechos" upon completion of the sale.
Good luck
Thank you very much!
#6 Guest
Posted 07 August 2006 - 10:30 AM
Right now ,in Sayulita ,there are a number of different land status;
1Ejido- the Prestanobre system is illegal and will not hold up in courts. However, many people use it,but it is risky.
2 Land that could be regularized through Corrett, but has not been usually because it costs quite a bit of money to do so.So it still Ejido land.
3 Land that has been regularized by Corrett,and therefore deeded ,but still in the name of the Prestanombre because of the taxes and cost of putting it in a Bank Trust or Corporation. There is a large capital gains tax when the property is evaluated by the bank( talk to an attorney about the details)
4 Land that is process of being regularized theough Procede. Again, talk to an atorney about this.
Simply ,unless you don't care if you have a legal right to land,just buy land that is held in a Bank Trust or Corporation. Or find out exactly what it would cost you to do so. In any case hire an attorney.
1Ejido- the Prestanobre system is illegal and will not hold up in courts. However, many people use it,but it is risky.
2 Land that could be regularized through Corrett, but has not been usually because it costs quite a bit of money to do so.So it still Ejido land.
3 Land that has been regularized by Corrett,and therefore deeded ,but still in the name of the Prestanombre because of the taxes and cost of putting it in a Bank Trust or Corporation. There is a large capital gains tax when the property is evaluated by the bank( talk to an attorney about the details)
4 Land that is process of being regularized theough Procede. Again, talk to an atorney about this.
Simply ,unless you don't care if you have a legal right to land,just buy land that is held in a Bank Trust or Corporation. Or find out exactly what it would cost you to do so. In any case hire an attorney.
#7 Gary Kirkpatrick - Platinum Capi
Posted 10 December 2007 - 10:05 AM
ALWAYS USE AN ATTORNEY for land purchase in Mexico! My company is the leader in financing for American buyers in Mexico. We have often encountered situations with Ejido land and many other types of liens on property. You may or may not be interested in financing your purchase, but it is one sure way to get a clean title. If the major lenders won't finance it, it probably isn't going to stand up in court either (there are not many options for land financing, though, only lots). Another possible suggestion is to obtain title insurance. You can begin the title search for a couple of thousand dollars and may be surprised what you learn.
As the other person said, I would avoid Ejido land if at all possible. Title insurance would be an absolute MUST (Stewart Title).
You migth check out a new development that's just getting started there called Sayulita Villas. We are working with them now to help make sure their newly built homes will be eligible for construction lending.
Gary K
www.wefundmexico.com
As the other person said, I would avoid Ejido land if at all possible. Title insurance would be an absolute MUST (Stewart Title).
You migth check out a new development that's just getting started there called Sayulita Villas. We are working with them now to help make sure their newly built homes will be eligible for construction lending.
Gary K
www.wefundmexico.com
Guest, on Aug 7 2006, 10:30 AM, said:
Right now ,in Sayulita ,there are a number of different land status;
1Ejido- the Prestanobre system is illegal and will not hold up in courts. However, many people use it,but it is risky.
2 Land that could be regularized through Corrett, but has not been usually because it costs quite a bit of money to do so.So it still Ejido land.
3 Land that has been regularized by Corrett,and therefore deeded ,but still in the name of the Prestanombre because of the taxes and cost of putting it in a Bank Trust or Corporation. There is a large capital gains tax when the property is evaluated by the bank( talk to an attorney about the details)
4 Land that is process of being regularized theough Procede. Again, talk to an atorney about this.
Simply ,unless you don't care if you have a legal right to land,just buy land that is held in a Bank Trust or Corporation. Or find out exactly what it would cost you to do so. In any case hire an attorney.
1Ejido- the Prestanobre system is illegal and will not hold up in courts. However, many people use it,but it is risky.
2 Land that could be regularized through Corrett, but has not been usually because it costs quite a bit of money to do so.So it still Ejido land.
3 Land that has been regularized by Corrett,and therefore deeded ,but still in the name of the Prestanombre because of the taxes and cost of putting it in a Bank Trust or Corporation. There is a large capital gains tax when the property is evaluated by the bank( talk to an attorney about the details)
4 Land that is process of being regularized theough Procede. Again, talk to an atorney about this.
Simply ,unless you don't care if you have a legal right to land,just buy land that is held in a Bank Trust or Corporation. Or find out exactly what it would cost you to do so. In any case hire an attorney.
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