Forums > Specific Focus > Home, Garden & Construction in Mexico

Terry

May 14, 2002, 9:19 PM

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Buying property as a limited partnership

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We are buying property in Mexico with two other families. We want to form a limited partnership to do so and would have the fideicomiso in the name of the limited partnership instead of the the six individuals involved. Is this a good idea or are there some Mexican legal problems with doing this??

Dutch

May 15, 2002, 7:40 AM

Post #2 of 3 (9357 views)

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Buying property as a limited partnership

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: We are buying property in Mexico with two other families. We want to form a limited partnership to do so and would have the fideicomiso in the name of the limited partnership instead of the the six individuals involved. Is this a good idea or are there some Mexican legal problems with doing this??<p>=======================================================
Can't speak to the Mexican law, you need a reputable Notario for that. Partnerships, even with a significant other, can later result in heartaches if not established properly in the first place. You not only have to consider "worst case" scenarios, and provide specific remedies for them, but also provide for dealing with heirs and assigns, bankruptcies or lawsuits against the interests of any party to the agreement, etc. Even "Right of first refusal" clauses (which give the other parties the right to buy another's interest before it can be sold to an outsider) must be very specific as to how value is established. OTOH, there are advantages in pooling money to buy something you can't afford alone, or don't want to tie all your money up in. You just need to be very careful, regardless whether you're dealing with a friend or relative. Buena Suerte!...Dutch

Rolly

May 15, 2002, 8:37 AM

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Buying property as a limited partnership

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My four friends, who are building a four-family house, tried to set up such an arrangement. The notario said it could not be done. We haggled with her for some while, but she was insistent that a simple joint ownership was all that could be done. I still think there must be a way, but what do I know about Mexican law?