“Uncertainty” is your worst Loreto Bay Homeowners scenario.

Dear home owner, three week ago all of us learned about the tragic situation with the Developer and Investors for the Village of Loreto Bay Community, it is very sad and devastating for everyone involved, including the old time Loreto residents, construction workers, their Company employers and especially to you “The Home Owner”.

This fact puts YOU ALL the homeowners at the center of the controversy, yes, right on the spot and certainly has created UNCERTENTY upon your Real Estate Investment. I want you to know that I am aware of the tremendous good will, effort and monetary commitment that all of you have devoted in trying to resolve the matter as soon and painless as possible, watching for the well being of the entire project, but one day it looks like everything is going wrong, to very wrong, to better and vise versa.

In order to ease your anxiety my Law firm “Baja Sur Legal S.C” has put together a series of legal considerations for every single homeowner to read and to be as much as possible informed of the legalities on your property, so that way in the immediate future you can make better judgments and decisions upon your particular situation.      

WHAT DOES THE RESTRICTED ZONE AND “FIDEICOMISOS” WITH LORETO BAY TSD COMPANY MEANS?

The Mexican law declares that the Mexican Nation has original ownership to all land and water in Mexico, as well as minerals, salts, natural gas and oil; but that such ownership may be assigned to individuals.The Mexican Constitution prohibits direct ownership of real estate by foreigners in what has come to be known as the “restricted zone.” The restricted zone encompasses all land located within 100 kilometers of any Mexican border, and within 50 kilometers of any Mexican coastline, which is the case of the real estate at “Loreto Bay”. However, in order to permit foreign investment in these areas, the Mexican government created the “Fideicomiso,” which is, roughly translated, a real estate trust. This type of trust is similar to trusts set up in the United States, but with a substantial difference that a Mexican bank MUST be designated as the “Trustee” and, as such, the Bank has title to the property and is the owner of record. This enabled foreigners, as BENEFICIARIES of the trusts, to enjoy unrestricted use of land located in the restricted zone without violating the law.

Because a “fideicomiso” is not other than a “Trust Agreement” created for the benefit of a “Foreign Buyer”, executed between a Mexican bank and the seller of property in the restricted zone, foreign buyers cannot own real estate in the restricted zone due to Constitutional restrictions.

HOW DOES THE FIDEICOMISO WORKS? The bank acts on behalf of the foreign buyer, taking title to real property. The bank, as trustee, holds the property for the foreigner, then has a fiduciary obligation to follow instructions given by the foreigner who is the trust ONLY beneficiary. The trust beneficiary retains and enjoys all the rights of ownership while the bank holds title to the property. The foreigner is entitled to use, enjoy, heir and even sell the property that is held in trust at its market value to any eligible buyer.

There is a common misconception among foreigners investing in Mexico that once the trust expires, the beneficiary loses all rights and benefits of the sale of the property held in trust. This is not the case. On the contrary, the beneficiary has a contractual right under the trust agreement with the Mexican bank to all benefits that may result from the use or sale of that property, even though he does not hold title to the property; but also creates liabilities and obligations to the beneficiary such payment of property taxes and yearly reporting to the Federal Mexican Government among other responsibilities.

Under Mexican Law, “The Bank”, as trustee, has a fiduciary obligation which is, to respect the rights of the beneficiary and follow precise contractual instructions, BUT the “Beneficiary” has obligations to fulfill as well. Here is where the rope wares “thin” for Loreto Bay Homeowners as beneficiaries. Minimum exposed lack of commitment to be current on his or hers obligations makes that homeowner a vulnerable target for all kinds of possible scenarios like: Cancelation of the Fideicomiso, Penalties, Citations, Civil litigation, Labor litigation and some many other possible legal consequences.  

There is at least THREE FACTS THAT DIRECTLY POINTS AT YOU; EIMYING AT YOUR REAL ESTATE ASSETS! That is why I believe, today, it is imperative to make your self conscious of you’re “LEGAL REALITY” with information that will allow you to make an educated decision about the destiny of your dream and investment in Loreto Mexico.

FACTS:

1. - “UNILATERALY” Loreto Bay has made a decision that affects your life and the life of others of course, but my focus is on you.  Loreto Bay principals and executives have ignored their promises and commitments to you without even thinking for a second on the tremendous consequences of their acts; the Law Firm that represents Loreto Bay Group has been very proactive on protecting “their client’s best interest”.

Loreto Bay Company has notified every one of you that they have suspended all the construction on site, but WHAT ABOUT YOUR CONTRACT WITH THEM, AND THE CONTRACT THEY HAVE WITH CONTRACTORS APPERANTELY ON YOUR BEHALF, do you really know what all that means by Mexican Law?

2. - “The Contractors” have retained the services of Lawyers in Loreto and La Paz to make sure someone will pay for the default and breach of contractual obligations among other legal implications and liabilities with the construction workers.  WHAT ABOUT YOU, HAVE YOU SEAKED LEGAL ADVICE?  

You need to retain the professional services of a “Law Firm” which primarily is interested on protecting every single homeowners right, works hard and intelligently to keep the project alive to avoid a collapse on your Real Estate Investment, a Law Firm that is familiar with the Loreto Bay project, knows the series of Civil, Labor, Foreign and other Mexican legislation that will affect the entire course of the project, a Law Firm locally located, well aware of the sensibilities and cultural differences among the participants during what seams an inevitable long process for now, but is also willing and capable to properly assess and provide written analysis and report on the situation to every one that has retained their services.

3. - “A group of workers have retained as well, the services of lawyers to protect their given legal rights by Mexican Law. Mexico is a Country where “Form” prevails upon “Content”; “First in time” First in rights”, “Workers interest among the first rights” , not to mention Taxes owed.

Act now do not wait another minute to get proper legal advice “PROTECT YOUR INTEREST AND THE INTEREST OF THE OTHER HOMEOWNERS.

Baja Sur Legal S.C

Real Estate, Corporate & Immigration Law Firm

Lic. Alfredo Cristo 608-320-0799 or alfredo@bajasurlegal.com

Attorney at Law

La Paz, Loreto, Mulege & Eastcape Baja California Sur México.

Hello my friends and Baja Sur lovers; unless you’ve been living under a rock, you knowMexico needs a tourism boost due to a bad publicity by the media on the influenza issue (which by the way we did not get any here I Baja Sur Mexico). In Baja, alone, hotels are down 90%, we all know friends and neighbors who are struggling to stay employed or keep their businesses going. So Mexico has a chance to be chosen as a site for Amazing Race on TV which would bring a much needed positive PR shot in the arm to this country. We’re at 42% but Colombia is ahead. We need an email blitz.

Go to this Banderas news site, it will take you to the Amazing Race voting site:

http://banderasnews.com/0905/to-amazingrace.htm

Or go directly to the Amazing Race site and vote:

http://www.tudiscovery.com/race/inicio.shtml

Hola mis estimados amigos y entusiastas admiradores de Baja California Sur México, solamente que vivas en las remotas montanas debajo de una piedra y sin acceso a ningún tipo de comunicación no sabrías que México necesita imperantemente publicidad positiva para recuperar el daño que nos han causado los medio informativos en el extranjero debido a la Influenza (que por cierto no tuvimos en Baja California Sur), por lo que esimportante tu participación y voto para que el famosísimo evento “The Amazing Race” se lleve a cabo en México, por ahora Colombia se mantiene con mas votos que Nosotros, ayúdame a revertir este voto y Vota conmigo por “México” utilizando los links aquí incluidos. Muchas gracias. Cualquier duda contáctame.

Alfredo Cristo

With the US economy in trouble, many people are keeping their Dinero close to home. Has the Mexican economy been affected like Asia and Europe? Not on the same level, and not so surprisingly. Mexican financial institutions did not buy sub-prime loans. If you’re thinking of investing in Mexico, there are still a few things to consider.

The economy is definitely more robust compared to the US, but there has been somewhat of a market downturn. Mexico has positively turned around banking systems and now has a good handle on the industry. It’s also probable that the days of yo yo devaluations are over. The treasury department is poised to deal with economic adjustments as witnessed by the efficient correction last month with the peso slide.

Our economy is however feeling the global slowdown ignited by the troubled US economy. The foundation of the Mexican economy is remittances, tourism and oil - all intricately tied to international markets. Money sent to Mexico from the US is down because jobs in the US are waning, tourism is down by a suggested 30% which is hard hitting and the oil industry is troubled by poor management. Government subsidies on electricity and corn have also waned causing a minor crunch at the cash register. This is due in part to the US policy to turn corn into bio fuel lessening US surpluses.

On to the good news about the Mexican financial market. The government has plans in place to counter the effects of the global recession, including the National Development Plan created in 2007. The initiative is focused on boosting infrastructure and moving forward with structural reforms. It also aims to spark a fast growing economy and generate more jobs. The policies of recent years have supported these measures enhancing economic and financial stability in the Mexican marketplace. Annual targets for a balanced budget have been met creating a gradual decline in the public debt ratio. The Fiscal Responsibility Law seeks to keep the budget balance zero. Annual inflation is in the low single digits, settling around 3%. Flexible exchange rates are also contributing to domestic stability. External debt ratios are down and foreign exchange reserves are up. Banks are well funded, profitable and liquid.

The Mexican government will be increasing spending on projects that generate domestic and foreign investment. Tax code is being modified and shifted to weather the oil storm.

The economy is quite mixed but is certainly not experiencing the kinds of problems seen in the US. The Mexican stock exchange in recent history has been very lucrative and has been holding fairly steady in light of the world picture.

Bottom Line: the Mexican economy faces challenges like any other world economy, however it’s well positioned to weather the global storm.

Source: The Gringo Gazette, Read the article: Investing in Mexico, Si or No?

The seasonal winds in Los Barriles make this sleepy surf town the ideal place to perfect kite boarding.  Also referred to as “kite surfing”, kite boarding is a growing in popularity in Los Barriles and further north in Las Ventanas.  Similar to snow boarding, you stand on a board with toe holds to keep it on your feet.  From here you are attached to a kite with a chest harness and when the winds pick up - off you go zipping across the water!  It can be fast and furious based on the wind speeds.  Most kite boarders bring several different kites to the beach for varying wind conditions.

A portion of the kites are pumped up with air in the event of a water landing.  There are several outfits that will provide lessons for beginners on up.  Prices range from $65 for a basic overview to $400 for a full on session. For first timers, it’s suggested you try to learn slowly over a few days.  In Los Barriles a local outfit called Exotikite works out of a palapa on the beach.  For those of you too wary to hit the waves it’s fun to just watch as some of the boarders get launched high into the air with powerful gusts of wind. 

To find the kiteboarders in Los Barriles, head north of town just a few minutes and turn toward the ocean once you pass the second big arroyo.  Look for the palapa with the orange pennants.

Recently the Akcion Boe Community Park opened in La Paz.  Governor Narciso Agundez was even on hand to cut the ribbon at the opening ceremony.  The park is sponsored by US companies AHK Foundation and the YO! Youth Opportunities Organization and further subsidized by a dozen or so local Mexican companies and supporters.  The 114,000 sqft center features two multiple use sports courts, a soccer field, playground, five classrooms, a library, bathrooms and a kitchen.  There are also several administrative offices and an outdoor palapa with recreation area. 

This is a wonderful new community amenity.  Courses and workshops will be held here on computers, English, dance, arts, basketball, arts, tae kwon do, aerobics, volleyball, football handicrafts and more.  Be sure to stop by with the family and check out the many opportunities.

The new JW Marriott Residences in Loreto Mexico provide all the details and amenities for a luxury living experience.  In these world-class Seaside residences the architects and designers have thought of everything one could need.  Sliding glass panels from the living areas open to large terraces with incredible Sea of Cortez views.  You’ll have direct beach access right from your front door with approximately 800 feet of private beach.  Design features include: travertine floors with a choice of three color schemes, kitchen islands with slab granite counters, high-end appliances, and custom milled cabinetry and doors. 

Each master suite will include such features as: Private terraces, beautiful wrought iron detailing, soaking tubs, double sinks, walk-in closets, wall safes and private owner’s storage.  Covered parking is a standard with an option for a private garage with storage.  Homes are also wired for high-speed Internet and satellite television.

The developers at the Loreto JW Marriott are also committed to the environment and responsible development.  They will be seeking a LEED certification (Leadership in Energy and Environmental Design) - which is part of the Green Building Rating System.  Internationally accepted standards for environmentally sustainable construction must be followed to gain such elite status.  

For more information about the new Loreto JW Marriott Residences please contact Alfredo Cristo.

Search for available properties in La Paz, Los Barriles, Loreto, Mulege, Baja Sur - Mexico

The new JW Marriott Residences in Loreto, Mexico offer the utmost in outdoor recreation with a natural Baja setting like no other.  Expanses of palm groves, water features, gorgeously manicured landscaping, pools, sunning decks, and exotic gardens will define the community.  This world-class resort will feature amenities such as:

• A gated and fully staffed entry
• Gorgeous beaches with sheltered coves and jetties
• Five acres of outdoor recreation play-land
• An 8,000 sqft full service spa
• Infinity pools, swim-up bar, family pools with water slides, lazy river, waterfalls, and interactive water features
• Beachfront restaurant with indoor and outdoor dining
• Poolside lounge with Beach Club Service
• 35-seat theater for private viewing or business events
• Adventure Center
• 18-hole putting green
• Aquatic Center
• Event Lawn for gatherings
• Grand reception lounge and porte cochere

The 8,000 sqft full service spa will primarily service JW Marriott homeowners and their guests.  It will offer the most luxurious of treatments and opportunities to celebrate health.  The site will include: seven private treatment rooms, men’s and women’s locker rooms, spa lounge with whirlpool and cold plunge pool, 1/4 acre spa garden, 15 meter lap pool, natural plunge pool, Fitness studio and spa boutique.  This spectacular new residential resort community will be one of the finest real estate opportunities Loreto has to offer.  No detail will be overlooked. 

For more information about the new Loreto JW Marriott Residences please contact Alfredo Cristo.

Search for available properties in La Paz, Los Barriles, Loreto, Mulege, Baja Sur - Mexico

Sales have slowed a bit on the Baja, but Mexican banks are not experiencing problems like that of their US counterparts.  Subprime loans were never issued by local banks in Mexico so the American banking crisis has barely hit our radars.  In fact in the first quarter of 2008, Banamex - one of Mexico’s top performing banks, helped out American based Citigroup (it’s parent company) with a $453 million loan.  Although Mexico’s economy is more closely tied to the US than any other country, banking reforms and several other measures in the past years have provided somewhat of an economic shield.  Of the top five banks in Mexico, two are Spanish-owned, one is American, one British and just one Mexican. 

Macro-economic stability in conjunction with and increase in lending and credit to the private sector as well as high consumer banking fees all lend to building such a shield.  Shrewd regulators and growing market sophistication also top the list of strength factors.  Reforms to bank secrecy laws allowing for the creation of a solid credit reporting system and reforms to bankruptcy laws have also provided for a solid foundation for a mortgage backed securities industry. 

According to Mexico’s Deputy Finance Minister, the accumulated increase in Mexican house prices has consistently been less than inflation so there is no bubble - yet.  while growth in Mexico’s economy is slow - a healthy banking industry is a good sign that we’ll weather the storm brewing up North.

For more information about Loreto or Loreto real estate opportunities, please contact Alfredo Cristo.

Search for available properties in La Paz, Los Barriles, Loreto, Mulege, Baja Sur - Mexico

A commercial mall is soon to be built in the vicinity of the new La Paz Walmart project.  Local entrepreneurs John Pentz and the Coppel Family will front an investment of $125 million to put up three million square feet of retail space.  They are hopeful retailers such as MM Cinemas, Soriana, Coppel, Home Depot, and Costco will come on board.  There are also plans for a gas station, two hotels and a mall food court.

Construction is slated to begin in January and finish within a year.  Soon everything you could ever need will be right around the corner in La Paz!

For more information about La Paz or La Paz real estate opportunities, please contact Alfredo Cristo.

Search for available properties in La Paz, Los Barriles, Loreto, Mulege, Baja Sur - Mexico