{"id":3020,"date":"2011-02-16T15:20:23","date_gmt":"2011-02-16T21:20:23","guid":{"rendered":"https:\/\/www.topmexicorealestate.com\/temp-blog\/?p=3020"},"modified":"2011-07-01T09:37:40","modified_gmt":"2011-07-01T15:37:40","slug":"what-different-contracts-are-involved-in-a-mexico-real-estate-transaction","status":"publish","type":"post","link":"https:\/\/www.topmexicorealestate.com\/blog\/2011\/02\/what-different-contracts-are-involved-in-a-mexico-real-estate-transaction\/","title":{"rendered":"What different contracts are involved in a Mexico Real Estate transaction?"},"content":{"rendered":"<p>Within Mexican Legislation, there are several <a href=\"https:\/\/www.topmexicorealestate.com\/mexico-laws\/\" target=\"_blank\">Mexico real estate contracts<\/a> related to the transaction; the most common agreements are oriented to purchase, sell, lease and encumber properties, whether these are preconstruction projects or finished residences.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" title=\"Mexico Laws\" src=\"http:\/\/i255.photobucket.com\/albums\/hh138\/beatlo\/Contract\/ballpointpen2-1.jpg?t=1297889853\" alt=\"\" width=\"301\" height=\"240\" \/><\/p>\n<ul>\n<li>The Sale-Purchase Agreement is a common civil agreement, by which the <strong>Seller<\/strong> transfers a property to the <strong>Purchaser<\/strong>, and the latter pays a certain amount of money for such transaction; if the object of this agreement is a property located within the restricted zone, such legal act can only be configured by Mexican individuals and\/or Mexican Corporations (which might or not have foreign shareholders). It must be highlighted that Corporations with foreign investment can only acquire <a href=\"https:\/\/www.topmexicorealestate.com\" target=\"_blank\">Mexico Real Estate<\/a> that is not intended for Residential Purposes; otherwise the parties must engage into a Trust Agreement.<\/li>\n<\/ul>\n<ul>\n<li>The Trust Agreement derives from an Anglo-Saxon legal figure, and is intended for those foreigners who desire to acquire <a href=\"https:\/\/www.topmexicorealestate.com\" target=\"_blank\">Mexico properties<\/a> within the restricted zone (50 km from the coast line and 100 km from the boundary-frontier line); as this restriction is highlighed in article 27 of our Mexican Constitution. This legal figure uses three parties: a) <strong>The Trustor<\/strong>, which is the party interested in transferring the property to a third party; b) <strong>The Trustee<\/strong>, which is the party which will legally hold the property, and whose main purpose is to administrate the property in the benefit of the <strong>Trust Beneficiary<\/strong> (This entity is commonly a derivative of a Bank Institution, and charges a yearly fee which oscillates between $450 usd and $600 usd); c) <strong>The Trust Beneficiary<\/strong> is the party which will enjoy and use the asset held by the Trustee, and is free to encumber and transfer the property in favour of a third party with the authorization of the Trustee.<\/li>\n<\/ul>\n<ul>\n<li>The Lease Agreement is a common contract by which the <strong>Leaser<\/strong><strong> <\/strong>allows the <strong>Tenant<\/strong> to use and enjoy a property for a time frame, in exchange of a quantified amount. (Eviction processes in Mexico are time consuming and expensive, thus it is highly recommended to have sufficient collateral and\/or guarantees to protect the proprietor from an un-performing tenant).<\/li>\n<\/ul>\n<p>In addition to the aforementioned agreements, which are the most commonly used in <a href=\"https:\/\/www.topmexicorealestate.com\/mexico-laws\/\" target=\"_blank\">Mexico laws<\/a> for Real Estate transactions, there are accessory contracts which aim to grant security to an unshielded party. Some of the legal tools used as collateral and\/or security are: a) Mortgage Agreements, b) Guarantee Trusts, and c) Promissory Notes.<\/p>\n<p><em><strong>Juancarlos Pelaez <\/strong>has been focused and has been helping non-Mexicans with their real estate contracts and activities for over 10 years in the Yucatan Peninsula region.\u00c2\u00a0 A graduate\u00c2\u00a0 from the prestigious Mexican University of Monterrey Technologico and a Masters Degree from Madrid Spain, JuanCarlos has ample knowledge in the regional laws and obstacles that most Americans and Canadians experience.\u00c2\u00a0 You can contact him at <\/em><strong><span style=\"color: #0000ff;\">(512) 879-6546<\/span><\/strong> <em>or through the company&#8217;s web site<\/em> <a title=\"Mexico Real Estate\" href=\"http:\/\/www.TOPmexicorealestate.com\" target=\"_blank\">www.<span style=\"color: #ff0000;\">TOP<\/span>mexicorealestate.com<\/a> <em><span style=\"#0000ff;\"><span style=\"#0000ff;\"><span style=\"#ff0000;\"><span style=\"#0000ff;\"><strong>NETWORK<br \/>\n<\/strong><em><span><span><span><span><br \/>\n&#8220;<strong>Mexico\u00e2\u20ac\u2122s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely<\/strong><\/span><\/span><span><strong>!\u00e2\u20ac\u009d<\/strong><\/span><\/span><\/span><\/em><\/span><\/span><\/span><\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Within Mexican Legislation, there are several Mexico real estate contracts related to the transaction; the most common agreements are oriented to purchase, sell, lease and encumber properties, whether these are preconstruction projects or finished residences. The Sale-Purchase Agreement is a common civil agreement, by which the Seller transfers a property to the Purchaser, and the [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[742,77,752],"tags":[90],"class_list":{"0":"post-3020","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-bb-kits","7":"category-how-to-buy-real-estate-in-mexico","8":"category-mexico-real-estate-contracts-bb-kits-2","9":"tag-mexico-lawyer","10":"entry"},"_links":{"self":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/3020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/comments?post=3020"}],"version-history":[{"count":5,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/3020\/revisions"}],"predecessor-version":[{"id":3029,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/3020\/revisions\/3029"}],"wp:attachment":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media?parent=3020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/categories?post=3020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/tags?post=3020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}