1) Can a foreigner own real estate in Mexico?
Yes, by buying the property through a fideicomiso (Trust)
2) Can I buy a property near or in front of the ocean?
Yes, laws have made it possible for foreigners to invest in coastal real estate through a bank trust.
3) How much are closing costs?
The closing costs vary from 5% to 7% of the investment. The percentage depends on the area where you adquire your property.
4) How long does the buying or selling process take?
This process might take between 30 to 60 days when using a Bank Trust.
5) Who will be involved in Real Estate transactions in Mexico?
Normally there are five players involved in a real estate transaction. These are the real estate company(ies), the seller, the buyer, a bank, and a Public Notary.
6) What are the Public Notaries activities?
A Public Notary is a lawyer who reviews all official documents to ensure the proper transfer of the property.
7) How much is the transfer tax?
The transfer tax ranges between 3% to 6% of the tax appraisal value, which in general is less than the sales value.
8) How do I pay for my real estate investment?
We use the Escrow service where a third party on behalf of the buyer and seller manages the money portion of the transaction.
9) How many parties are involved in a bank trust?
There are three parties involved. First the Trustor (Seller), the bank is the Trustee (Fiduciario), and the buyer is the Beneficiary (Fideicomisario.)
10) How does the trust function?
Title of the property is assigned to a trust with a Mexican bank acting as Trustee. The Trust Agreement is formalized by the division of a permit from the Mexican Ministry of Foreign Affairs. The buyer is titled as Beneficiary in the Trust and the beneficiary rights are listed in the public record by a Notary Public.
