Buying property in Mexico is safe and straightforward, and the process is very similar to those in Canada and the United States. Having a professional realtor is advisable because he/she is very familiar with this legal and secure process; and he/she provides expert assistance in every step of the way to make sure the transaction goes smoothly.
The following is a brief explanation of how to own property in Mexico:
First of all, you do not have to be resident in Mexico to own property here.
Foreign nationals can purchase and own property outside of the 100 km restricted land border zone, or outside of the 50km coastal zone.
Inside of the restricted border/coastal zones, such as in Puerto Vallarta and the Banderas Bay area, foreign nationals may own land through a fideicomiso (a trust) or through a foreign owned Mexican corporation. Most foreigners choose to purchase through a fideicomiso, as it can be more convenient for properties of residential use; of course it is advisable to consult with a realtor or other real estate professionals as to which is the best option for you.
A fideicomiso is a trust in which the buyers are the beneficiaries, and it is set up through a bank and provides for ownership of the land and property in all but name.Under Mexican law only an authorized Mexican banking institution can be a trustee.The trust holds the deeds to the property, and you and/or other named persons which you specify are sole beneficiaries to the trust therefore, the property. The bank cannot encumber or sell the property without the express written consent of the beneficiaries. You have full rights to do whatever you like with your property, such as making improvements,etc.
The trust enables you to name one or more beneficiaries upon your death, and you do not need to have a Mexican Will in order for your intentions with the trust to be executed.
Mexican law requires that all real property transactions be done by a Notary Public, who is a neutral, government appointed, experienced attorney who is legally responsible to ensure the deed and title are clear and recorded at the Public Registry, and that the property transaction has fulfilled the requirements of Mexican law.
The deed of transfer of title that is registered with the Notary as well as with the Public Registry of Property will contain the entire trust agreement.
