Some things you should know before purchasing property
in Mexico:
Can foreigners own land in Mexico? Yes. Foreigners may
obtain direct ownership of property in the interior of
Mexico. Foreigners cannot acquire direct ownership of
residential property within the area 100 kilometers from
the border and 50 kilometers from the coastline. This area
is known as the restricted zone. It is possible, however, to
acquire beneficial rights to use, improve and enjoy
property in the restricted zone through a Bank Trust or
Fidecomiso authorized by the Mexican Government under
the Ministry of Foreign Affairs. The Fidecomiso is
established for a 50 year renewable term and grants the
beneficiary the right to use, rent, modify or sell the
property. An advantage of the bank trust is the avoidance
of probate upon the death of the beneficiary when a
substitute is named. Property acquired for commercial use
by foreigners may be owned without the need for a bank
trust, provided that the property is held in a Mexican
corporation. Depending on the type of business, it is often
possible for a foreigner to own 100% of the Mexican
corporation.
Are real estate brokers and agents licensed in Mexico? No.
Currently, anyone can call themselves a real estate broker
or agent. There is an association of real estate brokers
(AMPI, Asociación Mexicana De Profesionales
Inmobiliarios, A.C.) that has been formed to ensure that its
members abide by a code of ethics and conduct.
Are real estate contracts of sale recognized and enforced in
Mexico? Yes. Real estate contracts of sale have to be
written in Spanish and conform to the laws of the State.
Your best protection is have a contract of sale that you
fully understand and describes the property to be
purchased, purchase amount, deposit amount, closing date
and other terms that pertain to your purchase. Do not
purchase property without a contract! It is astonishing the
number of people that will give a perfect stranger a deposit
on property because “they seemed to be someone who
was sincere” or “I was told by so and so that they
purchased a property through them and it worked out
OK”, only to find out later that there is a problem and the
seller or agent becomes uncooperative. Without a contract
you will have no legal recourse.
Do I need a lawyer to complete a real estate transaction?
No, but you should have one! The Notario Publico is a
government appointed lawyer that will finalize the sale and
collect all taxes due but does not represent you in the sale.
Your lawyer will do the title search, make sure that the
prior land taxes and other fees have been paid and in
general protect your interests. Always use an independent
lawyer, not the seller’s lawyer.
Should I give a deposit directly to the seller? Never! The
deposit should be held in escrow until the closing of sale.
Is title insurance available for real estate in Mexico? Yes.
Title insurance is available whether the property is
purchased through a trust or corporation.
in Mexico:
Can foreigners own land in Mexico? Yes. Foreigners may
obtain direct ownership of property in the interior of
Mexico. Foreigners cannot acquire direct ownership of
residential property within the area 100 kilometers from
the border and 50 kilometers from the coastline. This area
is known as the restricted zone. It is possible, however, to
acquire beneficial rights to use, improve and enjoy
property in the restricted zone through a Bank Trust or
Fidecomiso authorized by the Mexican Government under
the Ministry of Foreign Affairs. The Fidecomiso is
established for a 50 year renewable term and grants the
beneficiary the right to use, rent, modify or sell the
property. An advantage of the bank trust is the avoidance
of probate upon the death of the beneficiary when a
substitute is named. Property acquired for commercial use
by foreigners may be owned without the need for a bank
trust, provided that the property is held in a Mexican
corporation. Depending on the type of business, it is often
possible for a foreigner to own 100% of the Mexican
corporation.
Are real estate brokers and agents licensed in Mexico? No.
Currently, anyone can call themselves a real estate broker
or agent. There is an association of real estate brokers
(AMPI, Asociación Mexicana De Profesionales
Inmobiliarios, A.C.) that has been formed to ensure that its
members abide by a code of ethics and conduct.
Are real estate contracts of sale recognized and enforced in
Mexico? Yes. Real estate contracts of sale have to be
written in Spanish and conform to the laws of the State.
Your best protection is have a contract of sale that you
fully understand and describes the property to be
purchased, purchase amount, deposit amount, closing date
and other terms that pertain to your purchase. Do not
purchase property without a contract! It is astonishing the
number of people that will give a perfect stranger a deposit
on property because “they seemed to be someone who
was sincere” or “I was told by so and so that they
purchased a property through them and it worked out
OK”, only to find out later that there is a problem and the
seller or agent becomes uncooperative. Without a contract
you will have no legal recourse.
Do I need a lawyer to complete a real estate transaction?
No, but you should have one! The Notario Publico is a
government appointed lawyer that will finalize the sale and
collect all taxes due but does not represent you in the sale.
Your lawyer will do the title search, make sure that the
prior land taxes and other fees have been paid and in
general protect your interests. Always use an independent
lawyer, not the seller’s lawyer.
Should I give a deposit directly to the seller? Never! The
deposit should be held in escrow until the closing of sale.
Is title insurance available for real estate in Mexico? Yes.
Title insurance is available whether the property is
purchased through a trust or corporation.
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
