Categoría: News and Blogs

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WHAT IS THE TRUST MANAGEMENT?

By Thorvald Pazos Casas

SILMÉXICO Research Center

Translated  by Jessica Hernández

Trust is a fickle legal instrument, which has been transformed over time and has become popular in commercial practices. Recently, we can say that it is the rise of this very flexible legal vehicle, there is certainly no specific law that regulates all aspects of this figure, however, the Trust has been strengthened through a solid legal foundation that depends on the type of trust that is intended to be established, which implies the consultation of various current Mexican laws. In this article, we will focus on one of its most significant variants: Trust Management.

TRUST MANAGEMENT

What is the Trust? The Trust in accordance with the contemplated provisions in the General Law of Credit Titles and Operations2 (LGTOC), in its number 381. It is a contract or a legal transaction through which a person called Trustor, transfers the ownership or ownership of assets and/or rights to a financial institution, called fiduciary so that it conforms to the purposes and objectives of the contract that manages the assets or rights in favor of the trustees or beneficiaries. 

From the previous concept, it is important to address two questions; Who can participate in a trust? Can all assets and rights be transferred? According to the first of the questions raised, article 381 of The LGTOC mentions that people with capacity can be subjects, this is in relationship with the Civil Code of the State of Oaxaca in its numerals 21 and 25 respectively, they mention that people are divided into: Natural Person and Moral person. This means that both individuals and legal entities (companies, etc.) can participate in a trust, as long as they comply with the legal requirements and can exercise their rights and obligations. For its part, regarding the second question, it is important to focus on that, people have the ability to decide what to do with their assets and/or rights freely, except and with the exceptions that these are found in commerce, are lawful and do not affect third parties. That is, in the example of not affecting third parties, it refers to the fact that you cannot transfer food rights, or use a trust to avoid your responsibilities in that regard. In this sense, it is mentioned that certain assets and rights cannot be transmitted through a trust if its transfer violates laws or affects the legal sphere of third parties. Knowing the previous generalities, we are going to study one of the variants that the Trust has, which is known as “Fideicomiso de administration”. Rodolfo Batiza states that “TRUST MANAGEMENT” is known in which the trustor delivers real estate to the trustee who is responsible for the execution of lease contracts, the collection of rents, the promotion of eviction or eviction trials, payment of various taxes levied on real property, etc., all in the interest of the beneficiary”.

Manuel Villagordoa Lozano3 points out that management trusts “are those by virtue of which certain assets or assets are transferred to the trustee rights, so that the fiduciary proceeds to carry out the custody operations, conservation or collection of products of the trust assets entrusted to him the trustor, delivering the products or benefits to the trustee”.

What we can interpret from the two previous definitions, the function of administration trust is to transmit to the trustee certain assets and rights (real or personal property, real or personal rights, including securities, titles, credits, and cash) for him to keep, guard, manage, collect and transmit in your favor or to a third party. Then the question arises, when can we use trust management? There will be trust management provided that the trustee is prohibited (because it is not part of the purposes of the trust) the provision of assets in favor of the trustee or a third party.

The activities that the trust carries out are those related to the custody and conservation of the assets that make up the trust assets, as well as the collection of products or returns that they generate and transmit to a third party. Likewise, you may make the investment of trust assets through the acquisition of goods of another nature.

The constitution of Trust Management not only protects your personal assets from external threats, but it can also improve your financial situation by reducing the tax burden. It is a smart strategy to effectively manage and safeguard your assets, offering you the peace of mind and security you need on your path to financial success. Commercially, Trust Management is a flexible legal instrument that adapts perfectly to the needs of the operation, and additionally provides great benefits such as, Can the assets of trust be seized? They cannot be seized by creditors or debts against the trustor. The assets and rights are in the name of the trustee and not in the name of the trustor. Only the rights are seized (but if there are no instructions (from the committee) of payment, nothing is delivered). 

Does the trust pay taxes? The trust as such does not, since according to the Art 1 of the LISR, those obliged are the Natural Persons and the Legal Persons, however, the Trust is not a person. Therefore, those who must pay the taxes are the settlors and the trustees. 

1 Mendoza, C. (29 de marzo del 2022). El Fideicomiso y sus implicaciones tributarias. Colegio de Contadores Públicos de México. https://www.contadoresmexico.org.mx/Vida-colegiada/Fideicomisos-y-sus-implicancias-tributarias

2 Ley General de Títulos y Operaciones de Crédito. DOF 22-06-2018.

https://www.diputados.gob.mx/LeyesBiblio/index.htm#:~:text=22/06/2018-,PDF,-WORD 

3 Mendoza, C. (29 de marzo del 2022). El Fideicomiso y sus implicaciones tributarias. Colegio de Contadores Públicos de México.

https://www.contadoresmexico.org.mx/Vida-colegiada/Fideicomisos-y-sus-implicancias-tributarias 

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DO YOU KNOW THE SOIL CLASSIFICATION FOR CONSTRUCTION PURPOSES?

Wednesday, September 20, 2023

By Jessica Hernández

Real estate and marketing analyst in SILMÉXICO

One of the most important aspects to consider when starting a construction is the type of soil, as this will determine what will or will not be suitable for the work, or how the soil should be prepared for the building so that it turns out as expected plans. 

In Mexico, the classification of soil types is in charge of the INEGI (National Institute of Statistics, Geography and Informatics), and the categories are listed below:

According to geography

The geographical location of the land provides context for what it is like. In Mexican territory, the main types of soil are:

    • Regesol: this is the loose material on the rock and is where most of the mountain ranges are located.
    • Litosol: predominates in forestry, agricultural, and livestock functions.
    • Xerosol: it is arid in the center and north of the country.

Meanwhile, the Yucatan Peninsula, due to geological events thousands of years ago, has different characteristics from the rest of the country and the types of soil that predominate are:

    • Leptosol: which is shallow and dominates the landscape. 
    • Histosol: with organic material accumulated on the coast of the peninsula.
    • Vertisol: abundant in clay and changing with temperature.

According to the texture

In construction issues, we can talk about types of soil according to their texture, which are classified as:

    • Sandy: very light in texture and with little organic load, so it does not work in fertile soil. However, it is a useful source of construction materials.
    • Clay: It has a heavy and sticky texture abundant in organic matter. Likewise, clay is a useful material for construction.
    • Silty: contains no organic matter and is sterile by definition.
    • Stony: composed of rocks of different sizes. These kinds of soils are waterproof so they prevent water circulation. It is a good base to support a foundation, it is a good land for carrying out multi-level projects.

According to its integrity

This classification is even more important in the field of construction, since depending on the integrity of the soil, it will be the foundation that must be used in the work, this will give certainty that the soil will be able to support the construction. They are classified into:

    • Rock: Capable of supporting large buildings, and within them stony soils can be found.
    • Fine soils: As their name indicates, they are composed of fine materials
    • Granular soils: This type of soil also has fine material, such as gravel and sand, alone or in a mixture. As expected, we can include sandy soils here. Just like fine soils, their foundation requirements are more complex than those of rock soils. 

As mentioned at the beginning, the identification of the type of soil is necessary in the planning of the work, for this, it will be necessary to carry out the corresponding soil study, which we will talk about in a future publication.

Interested in construction services? Contact us at https://silmexico.com/contact-us/.

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TYPES OF FINISHES FOR INTERIOR WALLS

Wednesday, September 13, 2023

By Jessica Hernández

Real Estate Advisor & Marketing Analyst in SILMÉXICO 

The finishes are the coatings that are placed on a black work, whether on the walls, floors, roofs, openings, or ceilings, that is, they are the final details whose purpose is to protect, seal, or waterproof said surface, giving at the same time aesthetics to the construction. There are different types of finishes depending on where you want to place it and what function you want to fulfill.

In this section we will focus on the types of finishes for interior walls, of which there are two; horizontal and vertical.

Horizontal finishes:

They are subdivided into rigid pavements, continuous pavements, and false ceilings.

False ceilings: They have the function of hiding the evacuation pipes or installations that pass through the ceiling. They are usually made of plaster and reduce the height of the room.

Rigid pavements: These are those composed of rigid pieces such as tiles, paving stones, or tiles and are made of stone, cement, ceramic, concrete, wood, and steel sheets.

Continuous pavements: They are executed on-site and possible joints must be taken into account to avoid cracking. Continuous pavements are paving, gravel, printed concrete, or micro cement. For the final finish, it is usually necessary to use other materials known as intermediates that go between the final finish and the load-bearing elements.

Vertical finishes:

  • Within which we can find:

    Plastering: It is used to achieve a smooth wall surface thanks to the application of mortar, cement, or plaster base.

    Interior paints: This layer on the interior is purely aesthetic and is applied over the plaster.

    Tiling: It is usually used in humid places such as bathrooms or kitchens and consists of a wall covered in tiles, its function is to waterproof the wall.

    Stucco: Stucco is a paste of slaked lime and pulverized marble, It is applied in several layers and is used to cover both interior and exterior surfaces.

    Whitewash: Whitewash is a mixture of lime, powder, marble, and water. It applies like paint.


    Remember to choose the finish that best suits the design of your property considering that it fulfills its basic function of sealing, protecting, or waterproofing, and that it can also be maintained from time to time without having to replace it so often.

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WHAT IS NEEDED TO BUILD IN MÉXICO? ALL ABOUT THE BUILDING PERMIT

Thursday, August 7, 2023 

By Jessica Hernández

Real Estate Advisor & Marketing Analyst in SILMÉXICO

The construction permit is with which authorization is requested from the government either to modify, repair, expand, install, demolish or build a property. On the contrary, if the process of said permit is not carried out, you may be creditor of sanctions such as the definitive closure of the work.

The construction permit not only applies to the construction of homes, buildings, premises, warehouses, but also to make changes to the street, such as sidewalks. In this case, the permit is even more important, since it would be modifying a space that It is for shared use and is paid for by the citizens themselves with their taxes.

How is this permission obtained?

In Mexico there is a government institution that is in charge of granting the construction permit, this is the Ministry of Urban Development and Housing, in the same way this permit is granted through the mayors or municipalities to which the land or site belongs, wherever want to build, or make modifications.

Once the permit has been granted, the construction will have a limited time to finish, which must be respected in the same way, otherwise a fine can also be credited. 

It is important to highlight that construction permits vary according to the size of the work to be carried out, they are differentiated by minor works and major works. Likewise, a building permit will not be the same if the construction will take place in natural areas or reserves, such as coastal areas.

What are the necessary documents to process the construction permit?

  • Land use permit.
  • Deed or property title registered in the Public Registry of Property.
  • Proof of payment of Property Tax for the fiscal year in which the request is made.
  • Drinking water contract or receipt.
  • Road and access Geometric Design Plan, calculation of the number of parking spaces.
  • Plan endorsed by the Municipal Coordination of Civil Protection.
  • Geotechnical study and plans with the specifications, in case the project generates soil stability alteration conditions.
  • Construction project with indications in accordance with the regulatory code.
  • Plan of the structural and foundation design signed by the expert in the matter.
  • Structural calculation signed by an expert in the matter, attaching a copy of his professional certificate.
  • Plans of electrical, hydraulic, special, sanitary and gas installations, with their respective descriptive and calculation reports.
  • Approval of the location and land use of the construction, in accordance with the provisions of the Territorial Code.
  • Power of attorney to carry out the process or notarized Power of Attorney in case the owner does not sign the application.
  • Valid official identification with photograph of the owner.
  • Current official identification with photograph of the person processing.
  • Request letter signed by the expert, in which he presents his registration as Project Manager and, in turn, must sign all the plans with his expert number.
  • Vo.Bo. of the Drinking Water and Sewerage System, in case the project has a swimming pool and/or micro treatment plant (septic tank).
  • Study of visuals of the public road and adjoining areas in which it is demonstrated that the existing levels of the environment are respected, and that the sunlight and ventilation of the neighboring properties are not obstructed. Carried out by the expert responsible for the work.
  • Evaluation of the Environmental Impact Statement or respective risk study, Civil Protection Opinion and Urban Compatibility Study, with a positive resolution, in the case of the construction of gasoline, diesel and/or carburetion service stations.
  • Conformity document of the Ministry of Energy, in the case of carburetion stations for the supply of L.P. Gas.

Can you build without a permit?

The only works that can be carried out without a construction permit are those carried out by the government in order to make improvements to the infrastructure that provide benefits to society.

In the event that construction begins without permission, as mentioned at the beginning of this section, you may be subject to a fine, which will only generate extra and unnecessary expenses within the budget allocated to the work, in addition to third parties, such as construction workers, would also be affected.

At SILMÉXICO we are used to carrying out construction projects from scratch, taking care of every single detail, from the processing of the corresponding permits, to the delivery of the final product.

For advice about our construction services, call 9511271380, write to info@silmexico, or visit our offices in Oaxaca City and Santa María Huatulco.

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WHAT IS A JOINT VENTURE CONTRACT?

Wednesday, September 6, 2023 

By Jessica Hernández  (Real estate advisor & marketing analyst in SILMÉXICO) ft. Karla Soto (lawyer in SILMÉXICO)

This contract, as well as others, is an agreement of wills of two or more persons who have an object in common, its main characteristic is that the parties that participate in it look for a strategic ally for a business or an economic activity they want to carry out since this or these allies can make a significant contribution for economic growth or a social impact, being this main purpose of a joint venture contract. 

In simple words, it is a temporary agreement in which the parties are reunited to achieve a business goal, and that is why it can be short, medium, or long-term. The persons who participate in it can keep their individuality and legal independence, so that each of the parties can contribute with knowledge, Know-How, and even monetary, material, and human resources, being that, the intervention of each is under the regulations and rules stipulated in the contract.

Likewise, it is necessary to emphasize that a joint venture contract is not expressly regulated by Mexican legislation, so in legal terms, it is an “atypical contract”, in which clauses are established that contain the rights, obligations, responsibilities, contributions, and possible risks, as well as the extent to which the parties will assume them in the event that the main business can not be carried out. 

Once the above has been specified, it is said that there are 3 main types of joint venture contracts: 

1. Joint Venture: strategic alliances

In this type of Joint Venture, it is not carried out for an economic contribution, but for the sum of characteristics of each of the parties in the business or main objective of the business.

2. Joint venture: co-inversion

In this type of Joint Venture, the main characteristic is the monetary or asset contribution made by the parties, generating the same direction, whose purpose is to obtain greater profits than those that could be achieved individually through the incorporation of new markets and economies of scale.

3. Joint venture: contractual

In this type of Joint Venture, the parties involved carry out a common activity, establishing collaboration agreements that stipulate clauses that govern the activities that each party will carry out, the way of distributing profits and risks, and the use of auxiliary agreements and contracts. satellites. It is worth saying that there is strict regulation of entrepreneurship.

Are there risks and benefits?

The answer is yes, its main advantage is that being a legal link where everything is shared, all the parties involved assume the same level of responsibility, likewise, by sharing costs these are considerably reduced, in the same way, due to their union becomes a stronger and more efficient competition.

However, in terms of risks, the most outstanding is a possible conflict of interest by any of the partners, as well as the dependence between them for making important decisions.

The answer is yes, its main advantage is that being a legal link where everything is shared, all the parties involved assume the same level of responsibility, likewise, by sharing costs these are considerably reduced, in the same way, due to their union become a stronger and more efficient competition.

However, in terms of risks, the most outstanding is a possible conflict of interest by any of the partners, as well as the dependence between them for making important decisions.

For a joint venture contract to be successful, possible measures must be considered, always implement effective and efficient communication between the parties and the way in which their agreements and decisions should be made.

And, finally, a correct integration process, since if the Joint Venture occurs between people from different countries, it could generate conflicts due to differences between cultures, markets, legislation, and the planning of resolution strategies.

Final comment.

Joint Venture contracts, as well as their satellite contracts, will always be a good tool for legal or physical persons who have business activities, since they can help them increase their business alliances with other businessmen with the same interests or objectives, always giving support and legal protection for any eventuality.

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WHAT IS THE DUE DILIGENCE IN REAL ESTATE?

Monday, August 28, 2023

By Julio Velázquez

Lawyer in SILMÉXICO

When we think about buying or selling a property, we generally focus on some elements such as the price, delivery date, date of signing of deeds, etc. For this reason, we omit to analyze the background of the process that will result in a successful operation, such as the passage of due diligence or due diligence, however, what do we mean when we talk about this topic in the world of Real Estate? 

The process of buying and selling properties is made up of various stages, one of them, and perhaps the crucial and important stage is due diligence, in which the property information must be analyzed to provide suitable legal certainty for the celebration of said operation.

Therefore, a legal team of specialists in real estate consulting must objectively and in detail analyze all the documents that make up the transaction file, this analysis must result in a favorable opinion to later give the green light, this in order to provide security and legal certainty to the purchaser or seller of the property.

TIME OF THE DUE DILIGENCE

Once the initial document is signed, the due diligence time varies; everything will depend on the negotiation of the parties or the conditions in which the operation is carried out, although the final opinion must be given by the expert adviser who is studying the operation, since, due to his/ her experience, he/ she will be able to assess the time that is performed documentation inspection thoroughly. 

 

Normally an average term is from 10 to 30 business days, in the most delicate operations; either because a large amount of resources is handled or due to a condition that greatly compromises the same parties involved, the due diligence period could exceed the time contemplated; This is so that, in case it is required, process or obtain a missing document or an indication that conditions between the parties have the window of time.

ELEMENTS TO VERIFY IN THE DUE DILIGENCE

Once we have identified the average terms of analysis and study, it is time to know what are the elements that are studied in this due diligence.

In each operation, the parties must have a checklist on which they rely to request information on the property, the owner, and the legal status, among others. Normally the most important elements are made up of:

 

  • Public deed.
  • Registration of the deed before the RPP (Public Property Registry).
  • Identity and quality of the seller, which is detailed in the public deed or power of attorney (as well as the corresponding record of power).
  • Compliance with tax obligations, that is, payment of taxes.
  • The property has basic services, such as electricity and water.

 However, these points and the checklist will depend on each operation, since they are all different.

 At SILMÉXICO there is a strong and consolidated legal team of specialists in real estate consulting that will be able to help review each of your operations in detail, making you feel comfortable and legally secure.

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KEY PEOPLE IN THE CONSTRUCTION OF A REAL ESTATE PROJECT

 

Wednesday, August 23, 2023

By Jessica Hernández

Real Estate Advisor & Marketing Analyst in SILMÉXICO

A real estate development is the one in which the construction of a property is executed, in which different figures play important roles and are key to its proper development. Here we tell you who they are:

Project Manager

The project manager will be in charge of carrying out the planning and control so that all the steps of the execution of a project are carried out correctly. In other words, project management applied to this field includes all actions aimed at coordinating the work of the team to achieve the objectives of any construction project. Usually, the functions of the project manager include the initiation, planning, execution, monitoring, and control of construction projects.

The functions of a project manager in construction are among others: 

–        Decision making.

–        Economic feasibility studies.

–        financial planning.

–        Establishing the design.

–        The cost configuration.

–        The cost-design relationship.

–        Value engineering or economic analysis of alternative technical designs.

–        Buildability analysis. 

–        Contracting through preparation, selection, and contracting of proposals.

– Construction management or management, that is, time and investment programming.

Construction manager

Unlike the Project Manager, who occasionally visits the site, but is not there full time, the Site Manager is on site. He works in coordination with the project manager, and his duties include supervision and management of construction projects from conception to completion. In-depth project review to schedule deliveries and calculate costs. Supervision of all on-site and remote works to control compliance with construction and safety regulations.

General contractor

A general contractor is tasked with completing the construction process within the specified time frame. General contractors must also work with different interested parties, as well as the hiring and coordinate of all the personnel involved in the work, and suppliers of the different materials to be used, operating within the budget and supervising the entire construction project. The role of the contractor is essential from the preconstruction phase since it is in charge of receiving, analyzing, and landing all the information generated by the architects and calculating engineers, to fit it into a price and time frame. 

Safety Manager

A construction site is a place where accidents and risks are the order of the day, these can occur due to human errors, or due to machines that do not function properly. Objects placed in the wrong position, a distraction, or just not wearing the right clothing (special boots, helmets, gloves, etc.), can be the cause of insignificant accidents, even those that involve hospitalization for long periods. Precisely to avoid these situations, it is necessary to have a safety manager on site, who will be in charge of monitoring that each one of the workers is safe during their workday. The security manager’s task is to apply the corresponding preventive measures at each stage of construction, identifying possible risks and carrying out corrective actions according to their previously established management plan. These actions will not only avoid fatalities but also prevent fines and sanctions from construction regulatory agencies in the state and country that may even result in the definitive suspension of the work on the project. 

Facility Manager

Among the functions of the facilities manager we can find: planning and coordination of all installations and retrofits, management of the maintenance of equipment and supplies to meet health and safety standards.

Administration Manager

The one who will be in charge of seeing everything related to the monetary flows of the work. As its name indicates, it will manage the money destined for the execution of the work and, likewise, will coordinate the necessary purchases of the material. In short, it is the person who controls the budget and ensures that it is respected.

 

It is clear that there are more people involved who are equally important for the precise construction of the project, which is why it is necessary to establish roles and select the appropriate personnel for each function. Plumbers, masons, painters, topographers, welders, architects, engineers, etc., all form an essential part of a construction.

Currently, SILMÉXICO is in the process of construction on the coast of Oaxaca in different projects, where the processes are being meticulously carried out and all construction regulations are being applied, always with the indicated personnel, such as our team of engineers. and architects that make up the construction area.

Interested in our construction services in SILMÉXICO? Contact our advisors at info@silmexico.com, call to 951 127 1380, or visit any of our offices in Oaxaca City and Huatulco.

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FIND OUT NOM- 247 OF THE HOUSING SECTOR

Monday, August 21, 2023

By Jessica Hernández

Real Estate Advisor and Marketing Analyst in SILMÉXICO

Last September 19 entered into force the Mexican Official Standard (NOM) 247, which is the one that regulates everything related to Commercial practices- requirements of commercial information and marketing of real estate destined for residential housing and minimum elements that the related contracts must contain.

What is its purpose?

Regulate the implementation of strategies for the commercialization and advertising of real estate, for what is sought with this NOM, to protect the rights of consumers before real estate companies, developers, construction companies and all those involved in the real estate sector.

What does this Mexican Law stipulate?

Among the conditions stipulated in NOM-247 regarding the operation of real estate activities, are:

  • The advertising used by the provider must be true and verifiable.
  • Images and other descriptions must not mislead consumers.
  • Do not use messages that insinuate that the purchase of property makes you have superior personal qualities to those who do not make this purchase.
  • Honesty with the description of the property that is for sale, that is, type of materials, date of construction, etc.
  • Ads that discredit any other institution or brand should not be published.
  • The provider is obliged to inform and respect the prices, rates, guarantees, quantities, qualities, measurements, interests, charges, terms, restrictions, terms, dates, modalities, reservations, and other applicable conditions in the commercialization of real estate.
  • The provider must have the executive construction project in an affordable way, either digital or in physical form.
  • The provider must inform the consumer about the legal status of ownership and/or possession of the real estate.
  • The sale price of the property must be offered in national currency. If it is decided to use another currency, it will be at the exchange rate that governs the place and date in which the payment is made, in accordance with the applicable legislation.

Which institutions are responsible for monitoring compliance with this Standard?

Supervision of proper compliance with NOM-247 is the responsibility of the Ministry of Economy through the General Directorate of Standards and PROFECO (Federal Consumer Attorney’s Office).

Are there consequences for non-compliance with NOM-247 by the supplier?

Suppliers must analyze the effects of non-compliance with the NOM since the sanctions provided for in the Federal Consumer Protection Law indicate fines ranging from $617.41 to $2,414,759.14 Mexican pesos. The Federal Consumer Protection Law establishes that the recidivism of infractions (that is, when the same infringer incurs two or more violations of the same legal precept during the course of one year, counted from the day the first infraction was committed) results in the suspension or cancellation of the Supplier’s operations.

Are you about to sell your house and want to know more about this Standard and other aspects to consider when marketing the property? Contact our advisors at info@silmexico.com, call 951 127 1380, or go to any of our offices in Oaxaca City and Huatulco.

Bibliography: 

    • NORMA Oficial Mexicana NOM-247-SE-2021, Prácticas comerciales-Requisitos de la información comercial y la publicidad de bienes inmuebles destinados a casa habitación y elementos mínimos que deben contener los contratos relacionados, SECRETARÍA DE ECONOMÍA, Ciudad de México, DOF, 22 de marzo 2022, [citado el 21/08/2023], disponible en https://www.dof.gob.mx/nota_detalle.php?codigo=5646251&fecha=22/03/2022#gsc.tab=0 
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FOREIGN COMPANIES AND INDIVIDUALS’S REAL ESTATE ACQUISITION IN PRC

Monday, August 14, 2023

By Nan Chen

Legal assistant

Since July 2006, foreign companies and individuals are no longer permitted to directly acquire and hold PRC real estate for “investment purposes” (eg, greenfield evelopment projects and acquisition of buildings for investment holding and/or leasing). Today, foreign companies and individuals must obtain approval from the PRC foreign investment authority to set up a local company to carry out real estate
investment.

I. INTRODUCTION

According to the current law, foreign companies and individuals may directly acquire PRC real estate for “self-use” or “self-residence” purposes in certain limited circumstances. Foreign companies may purchase a “reasonable quantity” of buildings for self-use for their representative offices or branches in China. Note, however, that foreign companies and individuals from countries without diplomatic relations with China could be restricted from acquiring PRC real estate even for self-use purposes.

II. APPLICATION MATERIALS

For application with the designated bank, foreign individuals and entities need to submit the following materials:

1. Branches or representative offices established by foreign entities

(1) Sales or pre-sales contract for the property;
(2) Approval documents for the establishment of the domestic branch or representative office and valid registration certificate;

(3) Relevant certificates issued by the competent real estate authority regarding the registration and filing of the pre-sales contract of the property signed by the domestic branch or representative office; and
(4)A written undertaking stating that the purchased property meets the principle of self-use.

2. Foreign individuals who have worked or studied in China for more than one year

(1) Sales or pre-sales contract for the property;
(2) Identification certificates;
(3) Valid employment contract or study certificate for more than one year;
(4) Relevant certificates issued by the competent real estate authority regarding the registration and filing of the pre-sales contract of the property signed by the foreign individual.

III. LOANS

In addition, according to a statement issued by China’s National Development and Reform Commission in 2012, medium and long-term loans (i.e. loans exceeding one year in duration) given to foreigners by foreign banks for the purpose of home purchases will not be permitted. This statement applies to all foreign banks in China, which means foreign banks can no longer borrow money from overseas to provide medium and long-term loans to foreigners for the purposes of home purchases.
However, such banks can still use their own funds to provide mortgages to foreigners.
Alternatively, foreigners have the option of seeking home mortgages from domestic
Chinese banks.
Reference

1. https://www.china-briefing.com/news/regulations-on-real-estate-property-purchases-by-foreigners-in-china/

2. https://resourcehub.bakermckenzie.com/en/resources/global-corporate-real-estate-guide/asia-pacific/china/topics/real-estate-law

3. https://www.mohurd.gov.cn/gongkai/zhengce/zhengcefilelib/200607/20060726_1577

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ETHNOBOTANICAL GARDEN OF THE CITY OF OAXACA: A SPACE DEDICATED TO THE CARE AND PROPAGATION OF ENDEMIC PLANTS OF THE STATE.

Friday, August 11, 2023

By Jessica Hernández 

Real estate advisor and marketing analyst in SILMÉXICO

Located just behind the church of Santo Domingo de Guzmán, is the ethnobotanical garden, a space dedicated to the safeguarding and study of endemic flora of the state of Oaxaca, it is one of the favorite places of nationals and foreigners who visit the City.

How did this sanctuary come about?

The Garden is part of the Santo Domingo Cultural Center, which occupies the old convent that was built in the 16th and 17th centuries for Dominican friars. The land of the Garden was part of the old orchard of the convent.

This space served as a barracks from the mid-19th century until 1994, and was used as dormitories, parking lots, sports fields, and other military facilities. In colonial times it had other uses linked to the life of the convent, as can be seen in the remains that have been restored inside the Garden: irrigation and drainage channels, ponds, lime kilns, laundry rooms, a ceramic oven, and a paved road for the carts that supplied food and fuel. 

The hundreds of plants that can be seen in the garden began to be planted in July 1998, and since then, the arduous task of collecting, planting, propagating, and caring for them, etc, has been carried out.

Why was it called Ethnobotanical?

In addition to exhibiting the plant species that inhabit the state, this garden was founded to show the close relationship between plants and culture, since a large part of them, both in ancient times and today, are used as food, medicine, condiments, dyes, and have been a source of inspiration in art.

In addition to a nursery, the garden has a seed bank, a herbarium, and a specialized library where visitors can consult information on flora, ecology, and botany.

Do not forget to visit this site on your next visit to the City, and let yourself be surprised by the beautiful flora of the different regions that make up our state. Besides that, it is a place where you will be happy to take more than 1 photo.