So you just got back from vacationing on the coast of Mexico. After days spent by the Caribbean Sea you have fallen in love with the place- to the point where you now want to buy property in this little bit of paradise.
And who could blame you? Mexico really is heaven on earth…
The great news is that buying property south of the border is possible! The laws have changed considerably in the past 10 years allowing foreigners to purchase property in Mexico. Even the areas along the coasts and borders, formerly designated as the “prohibited zone”, are now available to foreign buyers.
You will need to abide by a few rules, however, if you want to avoid any unwanted hassles. To make a safe and secure purchase in Mexico, be sure to follow the below procedures:
- Before you do anything, you’ll need to set up a trust called a “Fideicomiso”. A qualified and licensed bank administers real estate through this trust on behalf of the beneficiary, (the owner). The term of this trust is 50 years but can be renewed for another 50 if needed.
- You’ll also need to ask the seller for the legal title and certificate of no tax liability upfront.
- Always be careful to NOT give earnest money to the seller! This concept does not exist in Mexico. Neither does escrow. Real-estate agents are not licensed and won’t have a separate account for earnest money. You may be able to find agencies in your country to provide these services.
- The closing deal will have to take place in the office of a Notario Público. A specialized attorney, the Notario Público acts as a key person in the purchasing process. His duties include: (i) examining the documents of the selling party to ensure their accuracy and legitimacy; (ii) verifying the title; and (iii) searching the public records to determine the status of the seller’s title to the property and the existence of liens against the property.
- Last but not least, foreign buyers should always be advised to consult counsel in their country of origin or a Mexican counsel regarding real estate transactions. They also can contact title companies in their home country to answer questions about conveyance issues, title searches and title policies for a prospective property as well as escrow account considerations.
The procedures for buying property in Mexico will be different than they are in your country but there are some similarities. Always proceed with caution and educate yourself on the rules and regulations before investing your money to make a secure and profitable purchase in Mexico.
Call us today for more information !
Judi Shaw | 1 604 628 7247 Direct | +521 984 116 3251 Mexico Cell