Buying Real Estate In Mexico Is Absolutely Safe!
Safety is a prime consideration in any investment, and Mexican real estate purchases have a long history of not being very safe. New laws in Mexico have changed all of that, and investors can rest assured that their money is absolutely safe when buying real estate in Mexico.
All land buyers who purchase real estate within 50 km of a coastline must place the deed to their land in a trust vehicle called a fideicomiso. The use of the fideicomiso permits the safe, secure transfer of land between seller and buyer.
A Mexican bank will hold the deed for your land in trust. The bank is obligated to act in the sole interest of the trust beneficiary – you! You control the bank’s actions with regard to your land and you cannot lose your ownership interest. The trust essentially creates a fee simple ownership of land and you have all the rights to the land that you would have if you held the title yourself.
Since the fideicomiso has been established, not one single owner has lost his ownership rights when using the fideicomiso. Simply put, it is the safest way to own land in Mexico. Don’t believe sellers who try to tell you that you don’t need a fideicomiso. That’s simply not true. By establishing the fideicomiso, you will circumvent the potential for problems to arise during your purchase of land.
Another safety mechanism you should look for is title insurance. Buyers who work with Select Mexico Properties can purchase title insurance on any properties we sell. Title insurance can help reduce the likelihood that your land will be subject to last-minute ownership claims or claims that arise after the sale. Your investment will be completely protected by a title insurance policy and buyers can secure title policies through firms like First American Title or Stewart Title.
By combining the protections of a fideicomiso and title insurance, you can be sure that your experience with buying real estate in Mexico is safe, pleasant and secure. If you would like more information about buying real estate in Mexico, please contact Select Mexico Properties today!
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July 23rd, 2008 at 11:51 am
Real Estate in Mexico is only going to get easier and easier to buy as more North Americans continue to call Mexico home. As more people continue to move South, so do well trained professional real estate agents, who are there to make buying in Mexico as easy as it can be.
July 28th, 2008 at 3:19 pm
As a cross-border Mexico mortage lender providing financing for Americans and Canadians purchasing Mexican property, I cannot agree with you more than what you disclose in this helpful article.
Currently, there are more than 6 large international banks lending in Mexico, through brokers like my company, Conficasa Mortgage International, and they would not be doing so if their collateral were not safe. and they use this exact structure as it is the only legal way.