Mexican Investment Board

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Mexican Investment Board

SECOND TITLE

ACQUISITION OF REAL ESTATE, EXPLOITATION OF MINES AND NATIONAL TERRITORIAL WATERS AND TRUSTS

ARTICLE 10.- Pursuant to Article 27, paragraph (I) of the Political Constitution of the United Mexican States, Mexican companies with an Exclusion of Foreigners Clause or which have executed the agreement to which said provision refers, may acquire ownership of real estate in Mexico.

For companies whose by-laws include the agreement provided for in Constitutional Article 27, paragraph (I), the following shall apply:

I.- They may acquire ownership to real estate located in the Restricted Zone used for realization of nonresidential activities, and must give notice of such acquisition to the Secretariat of Foreign Relations, within sixty business days following the acquisition date; and
II.- They may acquire rights to real property inside the Restricted Zone that are used for residential purposes pursuant to the following chapter.

ARTICLE 10A.- The foreign individuals and entities that pretend to acquire real estate outside of the Restricted Zone or to obtain concessions for the exploration and development of mines and waters anywhere within Mexico, shall submit before the Secretariat of Foreign Relations, prior to the acquisition or concession, a statement in which they agree under the terms of Article 27, paragraph (I) of the Political Constitution of the United Mexican States and obtain the corresponding permit from that Secretariat.
When the real estate that the foreigners pretend to acquire is totally located outside of the Restricted Zone or when they pretend to obtain a concession for the exploration and development of mines or waters anywhere within Mexico, the permit will be deemed to have been granted if not expressly denied by the Secretariat of Foreign Relations by notice published in the Daily Official Gazette of the Federation, within five business days following the filing date of the corresponding application.

When the real estate that foreigners pretend to acquire is at a county partially located inside the Restricted Zone, the Secretariat of Foreign Relations will determine whether the particular parcel of real estate is in the restricted zone within thirty business days following the filing date of the corresponding application.

The National Institute of Statistics, Geography and Computer Systems (INNER) will publish in the Daily Official Gazette of the Federation a list of the above mentioned counties, as well as those entirely located in the Restricted Zone. These lists will be currently renewed by such Institute.

The Secretariat of Foreign Relations will determine, through General Agreements that shall be published in the Daily Official Gazette of the Federation, circumstances in which the foreigners may simply file the application required in this Article, only by presenting before the Secretariat a statement in which they agree under the terms of Article 27, paragraph (1) of the Political Constitution of the United Mexican States without need for a permit from the Secretariat.

CHAPTER II

RESTRICTED ZONE REAL ESTATE TRUSTS

ARTICLE 11.- Authorization from the Ministry of Foreign Affairs shall be required for credit institutions to acquire, as trustees, rights on real estate located within the restricted zone, when the purpose of the trust is to allow the utilization and development of such property without constituting rights in real in respect thereof, and the trust beneficiaries are:
I.- Mexican corporations without foreigners’ exclusion clause in the case provided for in Section 11 of Article 10 hereof; and
II.- Foreign individuals of foreign entities.

ARTICLE 12.- The term ?utilization and development of real estate located in the restricted zone? shall be understood as the rights for the use or enjoyment thereof, including in such case, the obtention of fruits and products and, in general, any yield resulting from the lucrative operation and exploitation, through third parties or through the trustee.

ARTICLE 13.- The duration of the trusts to which this Article refers to shall be a maximum of 50 years, which may be renewed on request by the interested party.

The Secretariat of Foreign Relations can verify at any time compliance with the conditions under which the permits set forth in this Title are granted, as well as the substance and veracity of the contents in the announcements refer in the same.

ARTICLE 14.- The Secretariat of Foreign Relations shall decide on the permits to which this Chapter refers, considering the economic and social benefit that realization of these operations implies for the Nation.

Any application to obtain a permit must be resolve by the Secretariat of Foreign Relations within five business days following the filing date of the corresponding application, with the competent central administrative unit or within thirty business days with the corresponding local authority; otherwise, approval is deemed to have been granted.