Investing in Mexico
Consult a Mexican Lawyer
Foreigners may buy real estate through a fideicomiso if the property is within the restricted zone (100 km from the Mexican border and within 50 km from any coast) or by creating a Mexican corporation, and outright if the property is outside the restricted zone.
Whether you buy an existing home, presale or bare land, it is vital to have a lawyer assist you through the entire process to protect your investment. In the past, foreigners have lost their property or never received a title deed due to simple oversights; protect your investment by covering every base. Foreigners would not purchase real estate back home without a lawyer; the risk is no different in Mexico. After the deal is closed, discrepancies may leave the buyer with no recourse.
Some may claim you do not need a lawyer because the Notario is responsible for finalizing the deal, registering the property, and providing the deed. The Notario is indeed an essential figure in the real estate business since the title transfer is not valid until the Notario registers it in the public record. Still, they are an unbiased entity and not there to represent you. They represent all involved in the transaction, including the government. We recommend hiring a licensed, bilingual Mexican lawyer who will act solely in their client's best interests. It is important to note that a lawyer from your home country can not advise on Mexican law.
The Benefits of Hiring a Lawyer:
You may have already experienced the red tape involved in any process in Mexico; by hiring a lawyer, they will deal with government agencies, utility companies, developers, contractors, warranties and advise on licenses or permits.
Run an extensive title search to ensure the seller has the right to sell and that the property is not tied up in any legal battle or encumbered in any way
Research origins of the land to ensure it is not Ejido land (Propiedad Comunal), which will not provide a deed and may be reclaimed by the communal commissary or the government at any time.
Prepare the contract and review the terms and conditions of the sale.
Submit the permit to the Mexican Ministry of Foreign Affairs.
Collect non-debt certificates from utility providers and government agencies.
Confirm property taxes are up to date.
Obtain an active property survey (cadastral).
Determine the best strategy for the purchase, fideicomiso or corporation.
Coordinate with the bank in order to create the fideicomiso and the Not.
Special considerations are required when reviewing pre-construction contracts, including who holds the deed for the land, disbursement of funds, construction schedule, delivery date and consequences of incomplete or late delivery of the project.
Most importantly, provide peace of mind by ensuring you receive your new property's title deed.
2 Comments
My father has two pieces of land down in Michoacan Mexico in San Juan de Alima. We are looking to get a fideicomiso. He’s in very poor health. And struggles to get around. He lives down there. I live in Oceanside San diego. Will probably put it in my name because I am the benefactor. Or if it’s easier to put it in his name. These are the questions I need answered. Unfortunately he doesn’t receive mail down there being that it’s off the beaten path. So that’s something as well. So I’ve done some research. But looking to see how much everything would cost? How long it would take? And how secure it is to get it done without having to go in some place physically. Thank you
Dear Corey, Thank you for reaching out. We will review your request and contact you by email with more information and guidance on how to proceed.