Mexico Finance Insurance

All too often citizens of the United States, Canada and other countries ASSUME that property purchases are carried out automatically in Mexico in a manner similar to that of their native countries.  The first law of property purchase in Mexico is DON`T ASSUME anything!  Purchasing property is NOT  the same as in other parts of the world.

Would You Purchase a Property in Your Hometown Which Is Not Registered in the Local Public Registry or Land Titles Office?

Would you hand a complete stranger, without an office or an established business entity, a check for perhaps hundreds of thousands of dollars to pay for a property?  Why do so many foreigners do this when they purchase in Mexico?  Many do not realize that Mexico has a complex and complete legal system and a court system that is as well organized as any that exists in the United States, Canada or Europe.  It is essential that you have an idea of how the system works and what to expect when considering a purchase of property in Mexico.

Don’t Leave Your Brain at the Border!

Article 27 of the Mexican Constitution prohibits ownership by a foreign individual or business entity of real property (real estate) within the “restricted” zone which is an strip of approximately 30 miles from any coastline and 60 miles from any border.  Recognizing the demand by foreigners for ownership of property and recognizing the importance of making desirable properties available to foreigners for potential positive impact on the economy, the Mexican government implemented a series of Foreign Investment Laws beginning in 1973.  The law was modified in 1989 and again in December 1993, to incorporate the provisions of the NAFTA treaty passed in late 1993.

For those who are acquiring property for residential usage, the law requires that title to the property in the restricted zone be transferred to a Mexican bank, as trustee, in the establishment of a trust (fideicomiso) in which the foreigner is the beneficiary.  The bank is the titleholder of the real property and the foreigner is the owner of the rights of usage of the property.  The bank owns the real property rights and the beneficiary owns the personal rights of usage.  Ownership of these personal rights is evidenced through a deed prepared by a Mexican Notary Public and signed by a representative of the trustee bank.

Currently the term for a trust is fifty years.  The Foreign Investment Law of 1989 provides for renewal by filing an application.  Multiple renewals are permitted under the law.  By requesting extensions every fifty years, a property may be controlled by a family or business entity for generations.  For those foreign individuals or companies buying property in the interior of the country, not in the restricted zone, no bank trust is required but authorization from the Secretary of Foreign Relations must be obtained and ownership must be registered in the National Foreign Investment Registry located in Mexico City, as well as in the municipality where the property is located.

Avoid Mexico Taxes and Extra Costs. Leave the Mexico Deed in the Seller’s Name:  This is Wrong!

Until the buyer is formally named as the owner in fee simple or in the bank trust in a public document before a Mexican Notary Public, title to the rights in the property remain with the persons named in the previous property deed.  Their signatures are required to transfer title.  If the buyer fails to obtain his or her own deed he/she will be required to obtain the titleholder’s signature before a sale and transfer to another buyer.  This can be costly, frustrating, dangerous and time consuming.

The Importance of Mexico Registration of the Deed for Beneficial Rights.

The Mexico purchase/sale document signed by buyer and seller is generally legally valid between the parties to a transaction.  It most likely contains the description of the property, the price to be paid to the seller, and any other special terms and conditions.  It WILL NOT, however, provide valid notice to third parties unless it is recorded in the Public Registry Office of the municipality in which the property is located.  Mexico’s land registry system functions in much the same manner as the Public Registry offices in Podunk, North Dakota, Los Angeles, California, Ottawa, Canada or places in between.

many foreigners purchasing property in Mexico do not understand the importance of registration of their interest in property.  They believe that it should be left in the name of the property developer, in the Master Trust, or in the name of the previous holder of title.  What if the developer goes bankrupt?  What if the corporation and its principals, disappear?  Who can sign as the representative of the property?  Who then owns the property?  What happens if an unscrupulous seller sells the property to someone else?  While title is in the name of the seller, it is HIS/HER asset;  she may mortgage it, he may sell it again, it may be attached in satisfaction of a judgment, she may die without a will.

Unless the Deed for the rights of the Beneficiary has been Recorded, there may not be a remedy for the purchaser who neglected to obtain a registered deed…his or her interest and investment, may be lost.

To obtain the deed an appraisal, a property tax certificate, and a no-liens certificate must be obtained.  Notarized bank instructions must also be obtained if property is in the “restricted” zone.  Seller’s capital gains tax and Buyer’s acquisition tax must be paid.  The deed transferring rights to the buyer must be registered and stamped by both the tax office and the public registry.  If this process is not complete, the buyer is not fully protected.  The buyer’s ultimate protection is registration in the Public Registry office record, NOT the Notary Public or the trustee bank!

Financed Properties in Mexico

When property is sold with a down payment and the balance to be paid over a term of years, many sellers prefer to hold title to the rights in their name and transfer title to their rights only upon receipt of payment in full.  Meanwhile, however, the seller may die, may disappear, may bo bankrupt…again risky situations for the buyer.  the prudent buyer will insist upon a transfer of title and registration of a mortgage or pledge in which he gives his rights in the property as security for payment of the remaining purchase price.

In the event of default by the buyer, the seller must conduct a proceeding similar to a judicial foreclosure in the United States and Canada.  It is as troublesome as a foreclosure in any country in the world but notably more problematical.  The registered title and recorded pledge or mortgage provides the buyer a greater comfort level in his investment.  The lender also enjoys protection in having his loan recorded and will have an established legal proceeding to follow in the event of default by the buyer.

In one of the very few bright spots in TSX Venture share performance, Kootenay Gold (TSX.V:KTN) shares jumped 52% on December 10th after the company announced widespread high-grade mineralization from a drill program at their 100% controlled Promintorio Silver Project in northwestern Mexico.

With intercepts like 18 meters grading 950 grams per tonne and 151 meters at 162 grams per tonne silver equivalent, all eyes are focused on the suddenly stellar Kootenay, whose success at Promintorio caps a year in which the company has seen major progress on a big chunk of its property portfolio.

But while the rich intercepts are what has driven the stock to new highs, CEO James McDonald is most interested in what the drill results are telling him from a large scale geological structure perspective.

“These results indicate that the individual breccias drilled in the first phase are part of a single, large mineralized system with distinct characteristics indicative of a porphyry system. Accordingly, drill data suggests the Promontorio may contain a deposit of larger scale and scope than previously conceived,” he said.

That’s his technical way of saying that limits to both the depth, length and width of the mineralized system have not yet been reached. It remains open in all directions.

I asked him if that meant that these breccias referred to in the press release were sitting on top of a porphyry system.

“The point is not that there is a porphyry underlying the breccias but that the breccias themselves are part of a porphyry system,” he replied. “This is evidenced by the potassic (biotite) and phyllic (sericite) alteration grading from a propylitic (calcite chlorite) alteration.”

Perspective is what its all about at Promintorio. Its important to bear in mind that the region surrounding Promintorio, while historically the focus of small scale mining, has suddenly emerged as a precious metals hotspot in the last five or six years.

Current estimates from projects within a 200 kilometer radius of Promintorio put over 15 million ounces of gold and more than 480 million ounces of silver in various categories of mineral resources.

Deposits like Minefineders (TSX:MFL) Dolores project, with over 3 million ounces of gold and 148 million ounces of silver, and Alamos Gold’s (TSX:AGI) Mulatos deposit, at 3.71 million ounces of gold , are turning the region into a primary mining district for Mexico.

Other companies contributing to the previously stated regional resource include Agnico-Eagle’s (TSX:AEM) Pinos Altos, (1.6 million ounces gold), Gammon Gold’s (TSX.V:GAM) Ocampo project (2.86 million ounces gold, 133 million ounces silver), Palmarejo Silver and Gold’s (TSX:PJO) million ounce namesake property, Goldcorp (NYSE:GG), Pan American Silver (TSX:PAA), Fronterra Copper (TSX:FCC) and Tyler Resources (TSX:TYS).

Another perspective to bear in mind is that this program tested only a small fraction of the 40,000 hectares that comprise the entire Promintorio project. The project recently surveyed by an electromagnetic survey shows a number of areas with potential in addition to the 500 meter by 2,000 meter mineralized trend of which only a 175 by 200 meter portion was just drilled.

Nobody I spoke to wanted to be quoted as to what the potential could be. The company prefers to let the results do the talking.

So what’s next?

Well, according Kootenay president Ken Berry, “Given the success of Phase I Drill results we anticipate Phase II to commence early in the new year. We have also initiated an IP Study to source additional priority targets over the 500 meter by 2000 meter structure. “

When asked if the company was going to need to raise more money for Phase 2, Ken Berry responded that the company has “just under $2 million in the treasury and warrants and options outstanding which would yield an additional $6.9 million upon exercise.”

Considering the recent strong share price performance, it would appear likely that a good number of those options and warrants will get exercised.

“All in all”, Ken continued, “these results confirm the historic grades. From surface to depth, mineralization is rich and suggest the Promontorio may contain a deposit of larger scope than previously conceived. A porphyry system could have the set up for the possibility of an open pit.”

“This area of Mexico (Sierra Madre Region) had no major producers six years ago, now there are five major producers each having multi-million oz reserves (gold equivalent). There’s also another four projects expecting to go into production in the next 3 or 4 years.”

A key to Kootenay’s success is CEO, James McDonald, a founder of Alamos (National Gold) which produces 100,000 oz gold per year; and a the former president of Genco Resources (TSX.V:GGC), which produces 1 million oz silver per year. Jim remains on the board of Alamos and Genco Resources.

Kootenay Gold has just over 21 million shares issued and outstanding, and 28.4 million fully diluted.

If you love sunshine and beautiful beaches, there are several destinations that offer these. One of these is Goa, which is located in India. Holidays at a Goa resort is a great experience for anyone, who wants to have fun under the sun. This small Indian state boasts of magnificent scenery, which is filled with historical monuments and attractive tourist spots. It lures people from around the world to take part of its festivities. A Goa party by the beach, under the moonlight is the perfect ending to vigorous water sports activities or a day of shopping. Whatever type of fun you are into, you will definitely find it at Goa.

A Goa resort is the perfect place for you to spend the winter holidays with your family. This is because the state experiences a beautiful and warm weather most days of the year. Its coastline provides several fun activities for the tourists, whether it is day or night. Whether you are a sun worshipper, beach swimmer, diver, or water sports enthusiast, Goa’s long stretch of coastline holds several opportunities for you. If you want a rush of adrenaline, the beach of the state is the perfect place. The beach resorts of Goa have recreational facilities and activities for their guests. Most of these activities consist of activities by the beach and on the waters. There are beach resorts that are crowded with people and festivities. On the other hand, there are also some that are private, secluded, and unspoiled.

There are a handful of beach resorts in Goa that have earned a reputation for providing wonderful services, amenities, and facilities. Most of the tourists that travel to the state usually avail of an accommodation at a Goa resort because of the comfort and luxury that resorts offer. A lot of visitors opt to avail of beachfront accommodations because of the attractive opportunities that they can get. Their beachfront accommodation provides a great view of the seas. They have an easy access to different water activities. In the morning, they can have a swim or try water skiing. In the evening, they can join a Goa party.

Fort Aguada is recognized as a premier Goa resort. The base of the resort is the walls of a Portuguese fortress that dates back sixteen centuries ago. It is not only the historical charm of Fort Aguada that draws tourists. It is also the location of the resort by the Arabian Sea’s clear blue waters. Its water sports are comprised of rides on banana boats, parasailing, jet skis, water skiing, speedboats, bump skis, windsurfing, and several others. Hotel Majorda is another Goa resort, although it is less famous than the first one. It is located within the southern area of the state. It also has easy access to the beach, along with a lush environment and powdery sands. The other resorts of Goa are Hotel Longuinhos, Hotel Silver Sands, Hotel Bogmallo, and Hotel Kenilworth.

If you want to know more about a certain Goa resort, you can look up information on the Internet. One site that provides information on Goa hotels, rentals, and beautiful spots is Goanster. Through this site, you will get a chance to view photos, read blogs, and obtain Goa information. When you want to share Goa photos or Goa travel blogs, you can simply become a member of the Goanster.