State Law for Real Estate Professionals

By Jorge M. Conde, Esq.

If you are entering the real estate market, the first thing you will encounter while trying to find help for buying, selling or renting a property is a Real Estate Professional; yet only 17 out of the 32 states in Mexico regulate the services of Real Estate Professionals.

The state of Baja California Sur has recently joined the list. On June 27th, 2017 the local Congress approved the “Law to Regulate Real Estate Professionals in Baja California Sur”, which requires all Real Estate Professionals to obtain a License and register before the local Registry of Real Estate Professionals, to provide brokerage services to the public.

To obtain a License, legal entities (brokers) and individuals (agents) shall submit among other documents, legal documentation evidencing their existence/identity, Tax Registry Number (RFC), a certificate of criminal background check and most important, evidence their professional qualifications (exceptions apply during 2019). Legal entities with a License bears responsibility for the actions of the real estate agents or advisors working under its supervision, who should also suffice the same adequate training as the licensed individuals.

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Buying a Timeshare? Five red flags to watch for

What is a Timeshare? Timeshare also known as “Vacation Ownership” is basically where you buy the right to spend a certain period of time (typically a week or more) at a specific hotel resort in exchange for an initial buy-in amount plus an annual maintenance fee .

The sale of timeshare in Mexico is well regulated as the Federal Consumer Law requires for specific provisions to be included in all timeshare agreements which protect the consumer. To ensure the above, all timeshare providers must register their timeshare agreement before the Federal Consumer Agency (PROFECO) and prove that they can provide said services. When buying a timeshare ALWAYS LOOK FOR THE REGISTRATION NUMBER ON THE TIMESHARE CONTRACT.

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Despite the efforts to regulate the timeshare industry, there are many unregulated “timeshare providers” operating in Los Cabos, looking to make a quick buck by defrauding their clients. Here are 5 red flags to watch out for before purchasing a timeshare.

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Landscape and Ocean View Protection

By Jorge M. Conde, Esq.

The Municipality of Los Cabos has an extension of 119 miles of coastline between the Migriño area (at the Pacific Ocean) and the Buena Vista area (at the Gulf of California).

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With approximately 15,000 hotel rooms and 2,500 more currently under development, Los Cabos is one of the tourist sites most preferred by visitors to Mexico by foreign tourist and also at the national level. This nature sanctuary has stunning natural landscapes and impressive biodiversity that combines the ocean and the desert like few places in the world, as well as offering unsurpassed weather conditions irresistible to the visitors.

Despite the benefits that provide the protection of landscape in environmental, social and economic levels, the growth of the local economy is accelerating the transformation of various landscapes, in some cases degrading, with the corresponding consequences to the community. Therefore, the landscape has become an important element of protection embraced in the human right to a healthy environment, health, culture and identity. Continue reading

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What to expect when buying real estate in Baja

By Jorge M. Conde, Esq.

Mexican real estate transactions are not carried out in the same manner as United States real estate transactions.

The Mexican Federal Constitution declares that foreigners are not allowed to hold direct title to real estate property within the restricted zone. The restricted zone encompasses all land located within 50 kilometers (about 31 miles) of any Mexican coastline inland and 100 kilometers (about 62 miles) of any border. We are talking about most of the territory of Baja California and Baja California Sur. This limitation comes from historical reasons of military protection.

los-cabosNonetheless, under Mexican law, Foreigners are entitled to acquire real estate property within the restricted zone through a “Fideicomiso”. Fideicomiso is a Mexican type of contract. There are three main parties involved in the Fideicomiso for real estate acquisitions for foreigners: (i) The seller, which is called: “Fideicomitente”; (ii) a Mexican Bank, called “Fiduciario”; and (iii) the foreigner purchaser called: “Fideicomisario” or beneficiary.

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