Buying Property in Mexico A Brief Description of the Process
Property Ownership in Mexico – Mexican Law
Yes, Mexican Law allows for private ownership of land by foreigners. Their laws are quite specific about how land rights can be transferred from seller to buyer. A Notary Public will be necessary to guide you through the process, but it generally goes like this:
1. Mexican Property can be purchased and owned outright for residential use by foreign nationals if it is outside of the 100 kilometer restricted border zone, or outside of the 50 kilometer coastal zone.
2. Property inside of the restricted Border or Coastal Zones may be owned by foreign nationals through a fidecomiso (Trust) which is set up through a Mexican bank. This ownership method provides for ownership of the land and property in every aspect but name.
The Mexican Constitution bans foreign nationals from owning property within certain restricted zones. Because their Constitution cannot be altered regarding this, the Government has introduced a system of land trusts. By using this Trust System, foreign nationals can purchase property inside of the “restricted zones”.
Now, foreigners who want to buy their dream home on the ocean can do so, by utilizing a Trust, set up with one of the primary Mexican banks.
The trust actually holds the deeds to the property. You are sole beneficiaries to the trust, and therefore the property. As the sole beneficiaries, you have full rights to do whatever you wish with your property. It can be rented, leased, sold, bequeathed to your heirs or even given away. For all practical purposes you own the property outright in everything but name.
The Trust allows you to name a beneficiary upon your death. You will not need to have a Mexican Will for your beneficiaries to assume the full rights to the property.
The Mexican Laws on property ownership are comprehensive and provide protection for both the seller and the buyer in all property transactions, provided that the law is followed to the letter. You must ensure that all the necessary documentation is provided and that all the proper procedures are strictly adhered to.
The Realtor you use in this process will be your guide, and the Notary Public you use will make sure that all the paperwork is processed correctly. It is very important to Use a Reputable, Qualified Realtor to purchase property in Mexico.