I understand land leases can only be for a maximum of 10 years at a time. If you put improvements on the land presumably you are at the mercy of the land owner on renewing the lease. I assume you could put in the lease a guarantee of renewal at no more than would be determined by a set formula, such as the CPI or ?

I'm certainly no attorney so take what I say with a large amount of caution. With that said, I think there is nothing you can put into a lease in regard to extending it that would be legally binding. A lease is valid for 10 years, PERIOD.

If you have built a house on the land, the owner of the land must pay you fair market value for the house if he does not re-new the lease. I don't know how "fair market value" is determined.

With respect gentelmen Nafta in 1994 change all of the previous deals & back then it was a 99 year lease, now its a bank trust that is good forever , it just cost money & fees are going to be invented as needed over the years but it certainly has not slowed down the development . It is going nuts right now.

Curt

This is an interesting topic in Baja right now because of all the development. I have heard of a few Land Lease developments not renewing leases. Some are trying to move to 5 year leases. I did not know that the land owner would have to pay fair market value for the improvements if they decided not to renew the lease. Is this a Mexican Law, or is it usually written into the lease.

Could the land owner raise the lease $ amount to a level that was unaffordable but still offer to renew at the unrealistic amount. Would that help the Land Lord to avoid paying for the improvements.

Art

10% per year is the most I have seen, and even at that it is pretty affordable.

One simple rule......never invest more than you can afford to lose

Teniente said it all!!! One Simple Rule...spend no more that you
can afford to lose. Forget these nebulous statements from self appointed experts on Mexican land law. If you are afraid, then...don't come!

My suggestion if you are really interested in living in Baja is to buy using a "Fido", or Trust. A lease is too iffy. On a lease you could buy a place for $60k and a 10 year lease at $400 a month would be $48K......that's $108K
you could have invested in a house that is yours. Taxes could run anywhere from $30-150 a year, and trust management fees of $500 a year....far better off to own