Select Mexico Properties

Things have changed considerably in Mexico in a very short time. Buying real estate in Mexico was, until recently, a dangerous proposition for the buyer. The laws governing the purchase of land were remarkably different than they are in the US, and there were few protections for the buyer. As a consequence, banks were unwilling to lend money for buying real estate in Mexico.

Serious reforms were needed and that’s exactly what’s been delivered. Deeds for land purchases near the Mexican coast and national borders are now held in a trust mechanism called a fideicomiso. Fideicomisos are not required in other places, but many Mexican citizens choose to use this form of ownership to give themselves an added measure of protection.

If you are buying real estate in Mexico, you’ll need to work with a bank to establish your fideicomiso. Once it is established, you direct the bank to purchase the land, and the bank will act in your interest during the purchase transaction. The bank will also hold the deed for the land in trust for you after the sale has been completed. You’ll pay the bank for the land, as well as fees associated with setting up the fideicomiso. You’ll also need to pay a small annual maintenance charge to the bank for trust adminstration and servicing.

Be particularly wary of sellers who tell you that you do not need a fideicomiso when buying real estate in Mexico. All land purchases within 50 km of a coastline or 100 km of a national border must be held in a trust. You’ll also need the services of a real estate attorney to do title research, draw up and review the sale papers.

Your land purchase must be registered by a notario publico. A notario publico is not like a notary public in the US. A notario publico is a real estate attorney who acts as a quasi-judicial official. He or she records land purchases after verifying that the sale has been conducted in accordance with Mexican law, and that there are no other ownership claims, unpaid taxes, liens or other attachments on the property. For added peace of mind, you may purchase title insurance through companies like First American Title or Stewart Title on any piece of property that Select Mexico Properties sells.

These reforms protect the buyer and the lender quite well, and make buying real estate in Mexico as safe as buying land in any other developed country. For more information about buying real estate in Mexico through Select Mexico Properties, please contact a Select Mexico Properties sales representative today.

Photo Credit: Steve Woods