Canadian Owners Club

Mexico Realty Ltd. – Canadian Owners Club

MexicoMexicoMexicoMexicoMexicoMexicomr014MexicoMexicoMexicomr011MexicoMexicoMexicomr024004_0MexicoMexicomr_31_0Mexicomr019mr009mr022Mexicomr013MexicoMexicoMexicoMexicomr020cemetary_001_0mr_28_0MexicoMexicomr_27_0Mexicomr025mr015MexicoMexicoMexicoMexicoMexicoMexicoMexicomr12Mexicomr_29_0mr007_0MexicoMexicoMexicoMexicoMexicoMexicoMexicomr005_0MexicoMexicomr010mr_30_0Mexicomr023mr008_0Mexicomr016mr021MexicoMexicomr018MexicoMexico009Mexico

“Canadian Buyers who secure interest in a vacation, retirement or investment property in Mexico through a Canadian structured company under the Mexico Realty Ltd. model automatically become members of the Canadian Owners Club.”

Highlights

  • Similar to fractional ownership, the buyer purchases a share in a real estate property that is held with other persons;
  • Each property is purchased directly via a Canadian corporation which in turn becomes the legal registered owner of the underlying real estate asset.  This corporation is formed for the sole purpose of securing a specific real estate property;
  • For every property purchased a new individual corporation is established;
  • The total value of the real estate asset in each corporation is comprised of the initial acquisition costs including furnishings, Mexican closing costs, bank trust registration, Canadian legal, accounting, commissions and other related fees;
    • MexicoMexicoMexicomr_27_0mr020mr005_0Mexicomr_31_0MexicoMexicoMexicoMexicomr019mr008_0mr025mr007_0009mr015MexicoMexicomr_28_0mr009Mexicomr024MexicoMexicoMexico004_0mr013Mexicomr_29_0MexicoMexicomr016Mexicomr021MexicoMexicomr023MexicoMexicoMexicoMexicoMexicoMexicoMexicoMexicoMexicomr_30_0MexicoMexicoMexicoMexicoMexicoMexicoMexicoMexicoMexicoMexicoMexicomr022Mexicomr011Mexicomr12Mexicomr010mr014Mexicocemetary_001_0Mexicomr018MexicoMexico
  • Each buyer becomes a shareholder in the specific Canadian corporation with shares issued in direct proportion to their investment. The percentage of shares held, as compared to the total shares of the corporation, represents each owner’s fractional ownership interest in the real estate asset;
  • Co-owners can be a group who want to buy together such as family and friends or buyers with similar preferences sourced by Mexico Realty Ltd.;
  • A Co-Ownership Agreement forms the basis of the agreement among the shareholders of each Canadian corporation holding the real estate asset;
  • The Canadian corporation may in turn be party to agreements governing the use of the property and dealing with items such as common area costs with other parties as would be the case with a conventional condominium structure in Canada.

Through established affiliations with several prominent developers, Mexico Realty Ltd. currently has a portfolio of 5 star resort style condominiums located in popular destinations such as the Puerto Vallarta region, Baja California and Mayan Riviera that are available for the Canadian Owners Club.

mr_30_0MexicoMexicomr12Mexico004_0MexicoMexicomr023Mexicomr_29_0MexicoMexicomr024MexicoMexicoMexicoMexicomr014MexicoMexicomr018MexicoMexicomr007_0mr005_0mr016009MexicoMexicoMexicoMexicomr011MexicoMexicoMexicoMexicoMexicocemetary_001_0Mexicomr025Mexicomr013Mexicomr009mr_31_0Mexicomr019MexicoMexicoMexicomr010MexicoMexicoMexicoMexicomr021mr008_0MexicoMexicoMexicoMexicoMexicoMexicoMexicomr_27_0mr022mr015mr020Mexicomr_28_0MexicoMexicoMexico

Each unit is located within a newer, well-run development featuring many attractive amenities.  Options include purchasing 1/2, 1/4 or 1/8 ownership interest within the specific property.  Generally speaking, the fraction owned is directly proportionate to the number of weeks the unit is available for the owner.  For example ¼ ownership equals 13 weeks.  This formula is subject to the number of days / weeks the unit is set aside for annual maintenance.  The access schedule is established in advance and is based on a fair rotation system.  Owners can also collaborate with each other and may choose to swap weeks as mutually agreed.

Keep in mind that in Mexico, property that is located within 100 km of the Mexico border and 50 km of the Mexican coastline cannot be directly held by a foreigner.  It has to be held under a trust agreement (fideicomiso) with a Mexican bank.

The bank holds legal title and the foreign owner (in this case, the Canadian corporation) has beneficial ownership.  Transfer of shares by shareholders in the Canadian corporation would not involve Mexican authorities.

Canadian Owners Club members receive the following benefits:

    Mexicocemetary_001_0MexicoMexicomr023MexicoMexicoMexicoMexicomr_29_0MexicoMexicoMexicomr_30_0MexicoMexicomr016Mexicomr010mr018MexicoMexicoMexicoMexicomr015mr007_0MexicoMexicoMexicoMexico009mr022Mexicomr014mr_28_0mr025Mexicomr_31_0MexicoMexicoMexicoMexicoMexicomr005_0MexicoMexicomr011MexicoMexicomr013mr019MexicoMexicomr021MexicoMexico004_0Mexicomr020mr008_0MexicoMexicoMexicomr_27_0Mexicomr12MexicoMexicoMexicoMexicomr009Mexicomr024Mexico
  • Purchase at a fraction of the price proportionate with the amount of time you would like to use the vacation or retirement property;
  • Receive rental income for the periods you are not using your allotted time;
  • Potential tax benefits through the Canadian Owners Club structure;
  • Have everything taken care of for you as far as management, rentals, accounting, cleaning, scheduling and maintenance;
  • Own a real estate asset that may appreciate in value and that you can sell or pass on to your children;
  • Exchange Program with Canadian Owners Club units in other destinations;
  • Exclusive amenities and access;
  • Discounts on golf, restaurants, attractions and activities.

Areas of Responsibility and Expenses

There are four components that generally comprise the division of responsibilities and expenses associated with the Canadian Owners Club model.

mr010MexicoMexicoMexicoMexicoMexicomr013MexicoMexicoMexicoMexicomr019MexicoMexicoMexicomr005_0MexicoMexicoMexicoMexicoMexicoMexicomr_31_0mr011mr_27_0mr008_0Mexicomr018MexicoMexicoMexicomr016Mexicomr_29_0mr022Mexico009mr_28_0004_0MexicoMexicoMexicomr015Mexicomr12MexicoMexicoMexicomr023MexicoMexicoMexicomr_30_0cemetary_001_0MexicoMexicomr007_0Mexicomr014mr021Mexicomr020Mexicomr025MexicoMexicoMexicoMexicoMexicomr009Mexicomr024MexicoMexico

Mexico Realty Ltd. services include all aspects of acquisition and management of the real estate property on behalf of the Canadian corporation.  Leveraging reputable local resources, many services are contracted out to third-party providers as appropriate.  Specific responsibilities and expenses include:

  • evaluating and presenting select properties for Canadian Owners Club fractional ownership purchase;
  • establishment of the Canadian Corporation purchasing the underlying real estate asset, Co-Ownership Agreements and all related legal and accounting matters;
  • Mexican real estate closing costs including bank trust registration fees;
  • all staffing and/or contract labour costs specific to the unit;
  • reservations and costs relating to guest services;
  • accounting, reporting and distribution of net income for optional rental pool or unit specific management;
  • overall management of the entire process to ensure seamless, secure and worry free enjoyment by all Owners.

Fractional Owner is the investor indirectly purchasing a shared interest in real estate by acquiring shares in a Canadian corporation holding the specific real estate in Mexico.  Responsibilities and expenses incurred by the fractional Owner include:

  • financing costs (if required);
  • Co-Owners’ Assessments (defined in the Co-Ownership Agreement);
  • additional services used and paid on behalf of the Owner;
  • change-over cleaning charge may apply;
  • Owner damage.

Co-Ownership Group is the combination of all shareholders in the Canadian corporation holding the specific real estate asset. Responsibilities and expenses include:

    MexicoMexicoMexicomr015MexicoMexicoMexicoMexicoMexicoMexicomr_30_0mr011mr010MexicoMexicoMexicocemetary_001_0MexicoMexicomr013Mexicomr007_0Mexicomr_29_0mr025mr008_0Mexicomr020mr018MexicoMexicomr022Mexicomr_27_0MexicoMexicoMexicomr12MexicoMexicoMexicoMexicoMexicoMexicoMexicoMexicoMexicomr014MexicoMexicoMexicoMexicoMexicoMexicoMexicomr019mr_28_0mr021mr016MexicoMexicomr_31_0mr009Mexico004_0mr023MexicoMexico009mr005_0mr024MexicoMexicoMexico
  • residence unit utilities
  • unit property tax
  • Home Owners Association Assessments
  • annual Bank Trust fees
  • repair and replacement of in-suite furnishings, fixtures and equipment
  • cleaning supplies for the unit
  • in-suite maintenance and repairs (other than Owner damage)
  • specific Co-Owners’ amenities and equipment
  • insurance for furnishings, fixtures, equipment and liability
  • legal and accounting
  • in-suite capital and contingency reserves (furniture replacement allowance)
  • certain overhead costs of Manager charge backs as part of managing the Co-Owners’ interests
  • MRL management fees.

The Home Owners Association (HOA – similar to Strata Corporation in Canada).  This is the legal entity that is established to govern the use and maintenance of the overall common areas of the building, operations and maintenance.  Areas of responsibility and expenses typically include:

    Mexicomr010MexicoMexicoMexicoMexicoMexicoMexicomr_31_0Mexicomr022Mexicomr_30_0Mexicomr020MexicoMexicoMexicomr019mr12MexicoMexicoMexicoMexicoMexicomr008_0Mexicomr021009mr018MexicoMexicomr009MexicoMexicomr007_0MexicoMexicomr016MexicoMexicomr_29_0Mexico004_0mr005_0mr_28_0mr024MexicoMexicoMexicoMexicomr011MexicoMexicoMexicomr013mr015Mexicomr023mr014mr025MexicoMexicomr_27_0MexicoMexicoMexicoMexicoMexicoMexicocemetary_001_0MexicoMexicoMexico
  • staffing of reception
  • common area cleaning and maintenance, including:
    • exterior window cleaning
    • parking
    • outdoor landscaping
    • corridors and other common areas
    • building structure, systems, exterior and roof
    • general cleaning
    • security
  • common area utilities
  • building insurance and general liability
  • legal, administration and accounting
  • contingency reserve fund (for building repairs)

In most cases, the HOA monthly fees are based on the square meters (feet) of the unit.

Mexico Realty Ltd. derives its revenues from:

  • Commissions;
  • Transaction fees;
  • Management fees.

For more information simply email us.