Foreign Residents Network News

By Peter Fowler
pfowler@mail.com

Attention Newcomers:

This is the second of a series of network newsletters just for you! Bienvenidos (welcome) to Playas de Rosarito, B.C. aka Rosarito Beach, a sparkling Jewel-by-the-Sea. There are approximately 140,000 people living in Rosarito Beach of which about 14,000 are foreign residents, most of whom have concerns and questions. There is a municipal organization here called FRAO, which stands for Foreign Residents Affairs Office ( the only government office of its kind in all of Mexico) where you can get relocation orientation. FRAO was created to assist foreigners integrate comfortably into this rapidly growing community. Just let FRAO know what your concerns are what information you need - and they will do their best to get answers or put you in touch with reliable experts. You can e-mail your questions to: FRAO at frao@rosarito.org Conversely, if you have some good information you'd like to share with your fellow foreigners, send it via e-mail to: internationalresidents@hotmail.com

This issue concerns real estate and visas.

Real Estate
Gringos are flocking south of the border, some to visit and some to retire in Baja California. Lured by affordable housing with beach front vistas, quaint colonial backdrops, very low property taxes and a historic construction boom, thousands of gringos are snapping up vacation homes, retirement villas and investment properties. The interest in time share, rentals, lease and purchase, has created a prolific market. It's important to know that Mexico real estate laws are not the same as in the USA. Yes, you'd be surprised some gringos have asked about VA loans (duh!) and 30 year mortgages. Here CASH IS KING. You pay a lot up front in cash and pay a little in a short period of time by agreement. If you are a senior, a 30-year loan does not make much sense in Mexico! Further, the constitution of the United Mexican States way back in 1917 established a “restricted zone,” from the shore line to 100 km inland, which comprises almost half of Mexico's territory and the entire Baja peninsula. This restricts the purchase of property by foreigners. Only Mexicans, by birth of naturalization, can legally own beachfront properties in this zone.

Mexico's beaches are public land, known as the Federal Zone. Twenty meters from main high tide is the precise measurement for the public lands that adjoin waterways: oceans, rivers, lakes, estuaries and streams. If you have a beach house, you must construct it above the twenty meter mark. The government can grant a special concession for commercial use of said land if the federal zone agency deems it is in the best socioeconomic interests of the community Examples are marinas, hotels, commercial shipping, etc. A major criteria for granting commercial use of the federal zone is employment and the resultant economic benefits.

But wait! You really can buy beachfront property. Enter the Bank Trust. Foreigners can execute real estate trust contracts called Fideicomisos with a duly authorized Mexican banking institution. The bank holds the title in trust and the foreigner has “beneficiary” rights. This procedure is aka a “de facto real estate property system.” Under this system, foreigners can enjoy beneficiary rights for 50 years with the right to renew for another 50 years.

There is no way I can cover everything about this extremely important and complex matter of Mexican real estate which often involves large sums of money, so I'll provide you with information re: where you can find answers. I highly recommend that foreigners attend a real estate seminar where you can learn about Mexican real Estate Laws and ask questions. There are two such seminars that I know of in Rosarito Beach. One is presented by Remax, a real estate company owned and operated by Gustavo Torres. Presentations are held every Saturday morning at 9:30 at their office on the corner of Benito Juarez Boulevard and the entrance to the Rosarito Beach hotel. You can contact Remax at 100-2076 if dialing from Rosarito Beach of 011-52-661-100-2076 or 619-270-5446 if dialing from the USA. Seminars are also presented by Baja4u, a real estate company owned and operated by Roberta Giesea. Roberta has written a number of articles about real estate for the Baja Times. Go to www.Bajatimes.com and click on Past Issues. To enquire about when and where Roberta's next seminar will be you can contact her at 612-2187 if you are calling from Rosarito Beach or 011-52-661-612-2187 if you are calling from the USA.

Visas
Citizens of the United States do not need a visa to drive across the border. You are allowed to stay for five days. If you are planning on staying more than five days but less than six months you'll need a Tourist Visa, of FMT . You can get one at any Mexican Consulate, a travel agency, at the border, or, when traveling by plane you will be provided with one, depending on your nationality. You will be asked to provide certain information such as your full name, place and date of birth, gender, destination, reason for your visit and so on. You can request an extension in which case you'll need the following: (1) your passport and a photocopy, (2) the original FMT, and (3) a letter requesting the extension of the term. The tourist visa for Mexico does not allow you to work in the country. Upon returning to your country, you will have to return the FMT to the authorities, so keep it in a safe place. Please note that certain nationalities have a restricted entrance to the country. In such cases you must be invited by a family member, a friend, or a corporation. Request the visa from the Mexican authorities. The visa will be granted as long as all the requirements are fulfilled. As a NON IMMIGRANT, you don't acquire residency rights and are entitled to leave and enter the country freely.

If you wish to stay longer than six months you may apply for an FM3. This will allow you to stay in the country as a NON IMMIGRANT for a period of one year. This permit may be renewed annually for five years. If you are interested in acquiring the next immigration status ( IMMIGRANT) you may request from the authorities the corresponding immigration permit, the FM2. FM2: You must note that as an immigrant you have a restricted number of exits from the country. In the case that you leave the country for more than 18 months in a period of 5 years, you will not be able to apply for the INMIGRADO ( permanent resident) status. Caution: In case you stay outside the country for more than 2 years, you will lose the immigration status of an immigrant.

Both the FM3 and FM2 have to be renewed annually. We recommend that you take all the necessary precautions for the term not to expire. You should request the renewal 30 days before the expiration date.

You can get more information about FRAO at www.Rosarito.org.