[BUYING AND SELLING REAL ESTATE IN MEXICO] 188
included special tax benefits for FIBRAs in the LISR. According to the LISR 3 , in order for a trust to be considered a FIBRA and to have the tax benefits provided by the LISR, it needs to comply, among others, with the following requirements: (i) to be executed pursuant to Mexican laws and with a Mexican trustee. (ii) to have as its main purpose the acquisition or construction of real estate in Mexico that may be destined for lease, or the right to obtain income from the real estate. (iii) that the real estate built or acquired by the FIBRA be destined to lease (or equivalent) and not be sold within a period of 4 years following the date the construction of the real estate was completed or as of the date of the acquisition of the real estate, as applicable. (iv) that the trustee of the FIBRA issues trust certificates to represent the assets allocated in the FIBRA so that such certificates may be placed through a public offering in the Mexican Stock Exchange and registered before the National Securities and Intermediaries Registry ( Registro Nacional de Valores ); and
taxable income accrued during the immediately preceding fiscal year.
Please be aware that a FIBRA is a way for investors to invest in securities in a stock market of a special vehicle trust backed by leased real estate property but in no way can it be a vehicle that can be settled by a foreigner to invest, use and enjoy real estate property in Mexico. IV. Preparatory, Promissory and Purchase Agreements Once the buyer has decided in what capacity she/he will acquire title over the real estate, whether directly or through a Mexican Corporation or through a Mexican trust, the transfer of ownership will take place through the execution of a definitive agreement. It is customary and recommended, before closing of the definitive agreement, to undertake a thorough due diligence and seek proper legal advice before engaging in any transaction. The following are the agreements typically used to formalize the real estate property acquisition in Mexico: (a) Preparatory, Promissory Agreement ( contrato de promesa ) A promissory purchase agreement is a very common way to agree with a seller the future acquisition of a real estate property, without executing at that point the final purchase agreement itself. Through a promissory purchase agreement both parties reciprocally agree or promise, one to sell and the other to purchase real estate property at a stated price, as well as to enter into a definitive purchase agreement within a certain period of time, having agreed upon the essential terms thereof.
(v)
that the trustee of the FIBRA distributes to the holders of the relevant trust certificates issued through the public offer, at least once a year and no later than March 15th of each year, at least ninety- five percent (95%) of the total
3 Article 187 of the LISR.
ILN Real Estate Group – Buying and Selling Real Estate Series
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