If you are thinking about buying land in Tulum Mexico, congratulations! There’s no better place to buy a plot of land to build your dream home.
If you are looking for a place to retire and enjoy the sun, sand and sea for the rest of your life, you will love living in Tulum.
Imagine waking up every morning with the sound of waves crashing on the beach and birds chirping their good morning song while the warm sunshine greets you and the ocean breeze cools your skin.
Tulum is also a great investment opportunity. If you want an investment property or need extra income when you retire, then building a home or condo on one or two plots of land will get you closer to your dreams faster than any other investment opportunity available today.
What’s the Process of Buying Land in Mexico?
Buying land in Mexico is a very straightforward process.
All that is required is a diligent investigation of the property and a carefully drafted sales contract. The main obstacles are language barriers and cultural differences, so it is always advisable to work with an experienced real estate agent or lawyer to ensure that you know what you’re getting into by buying land in Tulum, Mexico. In addition to being your representative, they can also help you find the right property for your needs. So how will you get through the process of buying land in Mexico? Follow these steps:
- Find Your Real Estate Agent. Click here to contact our real estate agents in Tulum to help you for free.
- Find an experienced Real Estate Agent who speaks Spanish and English fluently! It will be important for them to understand all details of both languages when communicating with government officials and other agencies on your behalf.
- You need someone who has experience working in this area because there are many pitfalls waiting for those without knowledge about doing business within another country’s legal system—and finding reliable information can often be difficult if not impossible without their localized expertise (e.g., reading Mexican newspapers). Your agent should have worked before with expats looking down south-of-the-border properties as well as native buyers too!
- Schedule Some Showings With Your Real Estate Agent in Tulum Mexico. Click here to contact our real estate agents who can find land and schedule appointments for viewings.
The process of buying land in Mexico is very similar to that in the US or Canada, with a couple important differences.
The process of buying land in Mexico is very similar to that in the US, with a couple of important differences. As a foreigner, you need to have a bank trust (fideicomiso) and to have your real estate agent and lawyer review all documents. The buyer usually pays the closing costs and the land is sold as is. You must do due diligence before buying, which includes title insurance and checking with local authorities such as the tax office, municipal water department and national geographic institute. These processes are all handled by your agent, who will help coordinate with these agencies on your behalf. Other helpful information includes:
- A 10% deposit is required by most sellers upon signing an agreement
- The buyer’s name needs to be registered at the Foreigner’s Registry Office (Registro de Extranjeros) in order for him/her to own Mexican property
- It takes approximately 30-45 days from when you signed an agreement until closing
Land Sales Contract
Once you’ve found the plot of land that is perfect for you, it’s time to sign the contract. This is a binding agreement between buyer and seller, which means you need to understand every sentence before signing. It’s important to have an attorney review these documents as well. Your real estate agent should be able to recommend an attorney who is experienced in real estate in Tulum.
The contract should include:
- Purchase price
- Payment plan with due dates and amounts
- Closing costs (notary fees, land registry fees and taxes)
- Description of the property, including legal description and easements or encumbrances on title (things like easements or liens)
- Closing date
Buying land in Mexico is a relatively simple process, but it is important to do your due diligence. Make sure that the property has a clear title. If you are buying from another owner get a lawyer to help you with the process and make sure that everything is done correctly. He can also help you make sure that the property lines are correct and are as represented by the seller.
If you are purchasing land from a developer, make sure that they have all of their legal documentation in order. You don’t want to end up stuck with something if they did not follow through on all legalities required for having a development or building on your land.
As the closing date approaches, you will also need to decide how you want to pay for your new property. Closing costs are typically an additional 5 percent of the overall value of the property. For our hypothetical $150,000 USD home, that would be around $7,500 USD in closing fees. If you’re paying a buyer’s agent, their fees will also be included here.
Your payment options generally come down to one of three methods: cash, a bank loan (also called a mortgage), or a trust fund (also called an “inheritance”).
Once you’ve decided on how you’ll pay for your land and all the forms have been signed and approved, it’s time to celebrate! You’re now a landowner!
The title to the property must be established and registered with the local land registry. Lawyers in Tulum typically process deeds, which are filed in the public records of Quintana Roo. Your lawyer should ensure that your name appears in the title.
As long as you work with an experienced Realtor and Lawyer you can avoid most complications when buying land in Tulum Mexico
As long as you work with an experienced Realtor and Lawyer you can avoid most complications when buying land in Tulum Mexico.
Working with a trusted realtor is important, because the work that a realtor does prior to closing can save you several headaches and much money.
The realtors will help you find the best property for you and your needs, they will assist you in making an offer on the land, create all of the contracts and once accepted by both parties they will make sure everything is completed in time for the closing date. Closing dates are usually 30 days after acceptance of the offer. The realtor will also guide you to reputable lawyers who have experience working within the region and know what needs to be done to ensure a smooth transaction.
Getting a lawyer involved early on is also very important, because it typically costs very little for their legal fees compared to how much money is being invested into purchasing land in Tulum Mexico (the closing cost typically 1% or 2% of purchase price). It is good practice to hire your own lawyer because even though there are many excellent lawyers working in Tulum Mexico, their job is really only to protect their clients interest. They tend not too look out for buyers interests from another country or state unless they are paid directly by them vs the seller paying their fees since it’s customary for the buyer and seller each pay half of those fees; if that’s not possible then it’s usually customary for buyer pays full fees but this must be negotiated between buyer and seller prior to offer acceptance.
Find Land to Buy in Tulum Mexico Today
Our team of real estate agents in Tulum help you find, analyze/check, and close on your land property in Tulum Mexico at no extra cost and at no obligation. Click here to contact them today to get started.