Video

  • 9 minutes

Acquiring Real Property in Mexico

 
Acquiring real property in Mexico – the Mexican Constitution provides that the coasts and border regions cannot be owned directly by foreign individuals or foreign owned entities. If a foreign individual or foreign company wants to own land in the coasts and border regions they have to do it through a trust agreement. That area is deemed a restricted zone. However in the restricted zone,” Mexican companies with 100% foreign ownership are permitted to own real estate for “non-residential purposes,” i.e., industrial, commercial, tourist development, etc. Mexican company bylaws must include “clausula calvo” that requires foreign owners of a Mexican company to be treated as Mexican and to not invoke their foreign government. Trust agreements must be drafted by a Mexican notary public, the Mexican bank is the trustee and the foreign individual or entity is the beneficiary. A designation of substitute beneficiary is recommended and the trust is recorded before the Public Registry where real estate is domiciled. Registration by trustee is also before the National Foreign Investment Registry.

In this video our speaker, Laura M. Nava, reviews Ejido land, and acquisition of real estate without restrictions.

Laura M. Nava is an attorney with Dentons US LLP. Her practice focuses on assisting clients with Mexican trade, financing and investment transactions. She practiced law in Mexico from 1989 to 1996, as in-house corporate counsel for a Mexican company and in Tijuana, Mexico, as an associate for a corporate law firm, working primarily in the areas of corporate law, real estate law, labor law and foreign investment.
Runtime: 8 minutes

Faculty

Laura M. Nava

Laura M. Nava

Sheppard, Mullin, Richter & Hampton LLP