What is a Prestanombre?

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A prestanombre is a person who lends their name and identity to someone else for the purpose of acquiring property or assets in a country where they are not legally allowed to do so. For example, in some countries, foreigners are prohibited from owning land or real estate within a certain distance from the coast or the border. In such cases, a foreigner may hire a prestanombre to act as the legal owner of the property, while the foreigner retains the actual possession and use of it.

A prestanombre is usually paid a fee for their service, which may vary depending on the value and location of the property, the duration of the agreement, and the level of risk involved. The fee may be a one-time payment or a periodic rent. The prestanombre may also receive other benefits, such as tax exemptions or access to credit.

The responsibility of a prestanombre is to sign all the necessary documents and contracts to transfer the ownership of the property to their name, and to abide by the terms and conditions agreed upon with the foreigner. The prestanombre must also respect the foreigner’s rights and interests over the property, and not attempt to sell, mortgage, or encumber it without their consent. The prestanombre must also be willing to transfer the property back to the foreigner or to another person designated by them when requested.

Finding a prestanombre can be challenging, as it requires a high degree of trust and confidence between the parties. The foreigner must ensure that the prestanombre is reliable, honest, and solvent, and that they have no criminal record or legal disputes that could jeopardize the property. The foreigner may rely on personal referrals, professional intermediaries, or online platforms to find a suitable prestanombre.

To be protected from potential fraud or disputes, the foreigner and the prestanombre should sign a written contract that clearly specifies the terms and conditions of their agreement, such as the fee, the duration, the obligations, and the remedies in case of a breach. The contract should also include a power of attorney that grants the foreigner the right to manage and dispose of the property on behalf of the prestanombre. The power of attorney can be used for various purposes in a real estate transaction, such as paying taxes, obtaining permits, making repairs, or selling or renting the property.

A prestanombre is a useful solution for foreigners who want to acquire property in countries where they face legal restrictions. It can provide them with access to desirable locations and opportunities that would otherwise be unavailable to them. However, it also exposes them to potential losses or conflicts if the prestanombre fails to comply with their agreement or tries to take advantage of their position. Therefore, it is advisable for foreigners to seek legal advice and assistance before entering into such an arrangement.

For more information please contact Galvan Real Estate and Services in Nayarit, Mexico at Director@GalvanRealEstateandServices.com or by phone +1 52 327 275 0233.