A Quick Start Guide to
The real estate market in Mexico is highly attractive; vacationing or retiring in one of the beautiful tourist and resort districts of Mexico, like Riviera Maya, that have sandy, beautiful beaches with lovely views of the blue ocean are even way more attractive. Opportunities to invest, purchase for resale or just completely own properties in these places are plenty. Many of the cities offer up exciting opportunities that can be easily accessible to you as a foreigner.
However, you must understand that the Mexican real estate market has its own peculiarities, just like every other market should have. Understanding the workings of this market and some of its complexities would save you a whole lot of resources and time. You have to acquire enough knowledge, as a foreigner, and also depend on trustworthy professionals to help you in the process of acquiring and investing in properties in this market.
Sometimes it could be scary buying a property in a foreign land, and it’s understandable, but we’ve got you covered with the basic information to get you comfortable and confident.
Ownership of properties by foreigners is guided by the Mexican constitution. In the 1917 constitution, foreigners were totally banned from owning properties. But the amended 1973 constitution allowed foreigners access to owning properties in non-restricted areas. However, the good news in the 1993 constitutional amendment, a system called Fideicomiso granted access to foreigners like you to purchase properties in some places earlier stated as restricted. How the Fideicomiso system works should be of concern to you if you intend on buying a property in one of the restricted areas. The restricted areas are places within 100 kilometers of an international border or just within 50 kilometres of a coastline at high tide.
Through this system, as a foreigner, you can purchase properties through a bank acting as the trustee. The bank is the legal owner while you are the beneficiary of the trust. You as the beneficiary, retains all legal rights of ownership and as a result, you can decide to sell, rent, and transfer the fideicomiso or property to anyone you sell to or even pass it down to your children. The trust runs for 50 years and can be renewed during these years for another set of 50 years, but there’s still an opportunity for another 10 years after those 50 years to renew the trust. But please note that you are going to be incurring some bank charges – an annual fee– based upon the value of the property you acquired.
There’s another way to purchase properties, though. Through this other process, you can bypass the fideicomiso system. This process goes through a Mexican corporation – this company could be 100% owned by a foreigner. This option is most used by foreign investors to buy large properties. Mexican corporations can own properties – with full rights – in restricted areas, but they cannot own single-family residences. So if you are looking to invest in the real estate here, it’s only advisable you make use of this process.
Acquiring your property in Mexico is not so different from the process in your own country. A real estate agent helps you find your property and negotiate on your behalf. It’s much easier this way.
Another process is to visit the foreign secretary’s office to obtain a permit to buy a property you admire; the permit would contain a clause that denies you from consulting a foreign jurisdiction on that property. The most important thing in this process is to involve a reliable and trustworthy lawyer to help you review and verify the land deed before paying for the property. The process of getting a property registered may last anywhere between 48 to 108 days. We have a trust-worthy lawyer and we also recommend you highly reputable lawyers who have many years of experience.
Aside from your agreed price for the property with the seller, you will incur additional costs in the process of your purchase.
In the process of buying, expect to incur costs like: Notary costs (the notary public ensures legal procedures are followed and proper documents have been presented; this is very important), acquisition tax, title insurance and registration fees.
And if you eventually own a property and you’re thinking of selling, agent fees and the relevant taxes are what you need to settle.
Save yourself time and hassle. We make sure you get a great deal and getting your property obtained legally with Mexican law. Make sure you seek an experienced professional real estate firm to guide you.
Our experienced real estate company in Rivera Maya help you find your investment property and luxury home easily and safely.
We want you to feel at home and safe with your new Mexico investment property. We are friendly and always open to chat to you.