Easy Steps to Purchase Real Estate in Mexico
Define your budget!!!
Will this be a cash purchase or do you need help with financing?
Let one of our experienced agents help you. We will also help with financing; note rates may be more preferable in the U.S. or Canada.
Find your ideal property.
We have access to the largest selection of properties in Mexico.
Meet a recommended Mexican attorney of your choice.
We have a few selected Lawyers that can help with your purchase they will answer any questions or concerns you may have pertinent to your real estate transaction
One of our agents will submit an offer to purchase along with your good faith deposit.
Deposit good faith money (usually 10 – 20% of contract price) into the World Class Homes Client Trust account.
Sales price and terms are negotiated and agreed upon
You receive your copy of offer and final negotiated terms are drafted in to final sales contact.
Final sales contract is distributed and filed with all parties, with additional Promise to Purchase contract.
Remaining deposit balance normally 20%, equalling at total of 30 – 40%% of purchase price is deposited into the trust account.
An optional Bank Trust or corporation is established, or fideicomiso created or assumed in the name of buyer or on their behalf.
Clear title is researched and issued.
Finally you exchange all monies due at an appointment for closing at the Notario, this is an appointed government authority that drafts a final sale recorded with the municipality, state, and receive your title.
Owning Property In Mexico - Questions Often Asked:
Can you really own property in Mexico?
In fact, foreigners are not only allowed to legally purchase property in Mexico, the Mexican government has gone to great lengths to make it safe and simple. It is legal and 100% secure and we are here to guide you through each step.
How is it done?
You will own your slice of paradise in one of two ways: either through a Fideicomiso (FEE-day-coh-MEE-soh) which is a bank-held trust, or through a Mexican corporation.
What is a Fideicomiso?
A fideicomiso is a real estate trust held on your behalf by a Mexican bank of your choosing (Scotia Bank, Bancomer, HSBC, Banamex, Santander etc.).
The bank acts as the Trustee, and you and those you designate are the Beneficiaries of the trust. As the beneficiary of the trust, you maintain complete control over it, retaining the use of the property and making all investment decisions. This is not a lease, it is equivalent to a Living Trust in the US and Canada. A fideicomiso bestows upon the Beneficiary of the Trust (you) absolute and irrevocable control over the property: to enjoy, lease, improve, mortgage, sell, inherit and will.Simply stated, your property is placed in a trust that you own to be administered by a Mexican bank on your behalf.
Why is a Fideicomiso necessary?
The purpose of the fideicomiso is to allow foreigners to buy prime Mexico real estate inside the "restricted zone,"and ensure a safe and secure transaction. The "restricted zone" is any land within 31 miles (50 km) of the coastline and 62 miles (100 km) of the borders. The Mexican constitution, when created, was designed to protect their land and prevent the kind of massive land loss they had endured through their history. Rather than amend their constitution, Mexico created and added the fideicomiso to encourage foreign investment in the highly desirable areas, particularly along the coastline. Residential properties outside of the restricted zone can be acquired directly by foreigners without the need for a bank trust, although some buyers opt to use it.
Is the Fideicomiso an asset of the bank?
No. Your trust is not an asset of the bank; they are merely the stewards of the trust. You and those you designate are the beneficiaries. The trust to your Mexico real estate property is held by the bank for the beneficiary (you) and is not considered an asset of the bank therefore not exposed to any legal action that the bank might find itself in. The trust is the beneficiary's property.
For how long is the Fideicomiso good /sufficient?
The Trust is initially established for a period of 50 years and can be renewed at any time by a very simple form and a nominal fee. The trust is set in 50-year increments guaranteed renewable for perpetuity. The current cost is about $500 USD.
Can the government take my Property?
Foreigners often worry about their land being expropriated by the Mexican government. Under the North American Free Trade Agreement, NAFTA, Mexico may not directly or indirectly, expropriate property except for a public purpose (i.e. building roads). And only through a legal condemnation proceeding will this be possible. In the rare case where it is necessary to expropriate land, the government will pay swift and fair market compensation to the owner, together with accrued interest.
This is the same process known as Eminent Domain in the USA, Compulsory Purchase in the UK or Expropriation in Canada.
Tip: If you have ever heard one of those stories about someone getting their property taken by the Mexican government, it is because the unfortunate person bought Ejido land, which is untitled land that only a Mexican national can legally own. Ejido land is the only land in Mexico that is without title.