Things you need to know about owning property in Mexico, when buying prime beach-front real estate, ocean view homesites, and condos.
The first question most foreigners ask about buying real estate in Mexico, is whether it can actually be done. The answer is yes! Thousands of foreigners already own property throughout Mexico.
Costa Loreto offers the foreign and domestic investor one of the most secure forms of property ownership in all of Mexico. The following information describes the process of Mexican Property Ownership, the equivalent to an American beneficial trust.
While it is true, that in years past, Mexican law prohibited foreigners from purchasing property, this is no longer the case. Although there are some restrictions, foreigners can purchase property and will receive either fee-simple title or a trust deed. To do so, the buyer requests a Mexican bank of his/her choice to act as a trustee on his/her behalf. Either way, the owner will be able to own property, sell it, or will it to their heirs as they choose.
How it Works:
Foreigners will acquire irrevocable and absolute ownership right to property in Mexico through a 50 year perpetually renewable and transferable Bank Trust called a "Fideicomiso". This Trust is a legal substitute for deeded (commonly referred to in the U.S. as fee-simple) ownership and is to be carried out by a notary public. This Bank Trust is provided specifically for non-nacionals to own property in formerly restricted zones (border and beach areas). The trust system of ownership is sanctioned by the government of Mexico, provided for under the constitution of Mexico and secured by the Central Banco de Mexico by offering powerful protection to the buyer and investor.
Financing:
In years past, buying real estate in Mexico was always a cash transaction. But now, home mortgages are available to qualified buyers. Both Mexican and U.S. companies currently offer mortgages. It is important to note that interest rates are usually hgher than in the U.S. , and that additional fees apply. This does however offer the opportunity to purchase property in Mexico to buyers that may not have been able to do so in the past.
To learn more about the process of buying and owning property in Mexico please press the following link, and don't forget to bookmark this page before you leave!
