If you are a foreigner planning to make Mexico as your second home, conduct your homework before buying a real estate property in this beautiful country. Do not just consider it because of its distance from the United States, but take into account the other reasons why you want to invest in a property in Mexico.
You can begin your “virtual travel” in Mexico via the Internet. There are many websites that carry several articles about Mexico. A virtual professional real estate agent is always at hand in one of those websites who is willing and able to guide you as you wander and see the beauty of every city or community within this beautiful country. He will keep you well-informed (as you wish) about the history, people, culture, tradition, laws, tourist attraction, prices and other factors about a specific place in Mexico.
After reading and hearing what you want to know about Mexico (even without visiting the place in person), it is quite certain that you will be convinced to settle in one of its wonderful coastal cities. But, do not make haste; it is very important that you must fully understand the intricacies of acquiring a property in Mexico. Here are some of the legal pointers you must bear in mind before sharing your precious dollars.
Are You Qualified
The answer is no and yes. NO, because under the Mexican Foreign Investment Law (FIL0) foreigners are restricted to own directly real estate properties for residence that are within the 100 kilometers land borders or 50 kilometers from the coastline (restricted zone). The answer is also yes, since they can acquire the same property through a Mexican Real Estate Trust. This trust solution allows the foreigner or purchaser as beneficiary in a local banking institution who acts as fiduciary under the set-up. The same yes answer is applicable when the property under issue is for non-residential purposes even though it is located within the Restricted Zone. The approach is not through a Mexican Real Estate Trust but under a Mexican firm.
What to Do
Before buying that piece of property, be sure to inspect it and protect your interest by securing title insurance. This insurance will secure you in case there is a lien attached to the title of the property. An actual site inspection of the property must also be considered especially the constructed facilities on the property. If you cannot personally inspect the building, hire an accredited appraiser to assure that the building is in accordance with Mexican building standards. If everything is fine as you expected, prepare for the documentation of that property in Mexico.
What Are the Legal Documents?
Like in most countries, a deed of sale is one of the modes of effecting legal transfer of ownership of real estate properties in Mexico. It could be an installment or conditional sale or an absolute deed of sale to be executed by both seller and buyer before a Notary Public in Mexico. This deed of sale is recorded by the government agency in-charge of properties in Mexico.