Are you looking for information to buy real estate in Mexico? Can foreigners buy real estate?

Are you looking for information to buy real estate in Mexico? Can foreigners buy real estate?

Are you looking for information to buy real estate in Mexico? Can foreigners buy real estate?
The Mexican law for the purchase of real estate establishes that Americans and Canadians, or non-Mexican people can legally acquire coastal or border properties through a trust deed agreed with a Mexican bank. The owner has complete control of the deeds, so they can change them from one bank to another and not at the whim of a bank manager. Foreigners can directly buy rural or urban properties in the interior of the Mexican Republic with certain limitations in certain agricultural sections.

The trust deed is established through a Mexican bank, assuring foreign buyers with all the rights and privileges of owning a negotiable and property title. The Foreign Investment Law allows such deeds to be established for a term of 50 years and can be infinitely renewed for a nominal fee for this process. This process protects the rights of foreigners and ensures that the transaction is legal and unhindered. The Trust deed should not be confused with a lease, which has a lower value.

Real estate held by deed of trust is valued differently than similar property held by deed – its value increases in exactly the same way and is taxed in the same way as property in the United States. . Property rights in Mexico are, in fact, safer for the owner, compared to owning in the United States or Canada.

Taxes
Property taxes are very low in the Riviera Nayarit. The value is determined at the time of each sale, one of the necessary documents required for a legal closing is the appraisal evaluation, carried out by a competent and licensed appraiser specialized in this type of valuation. Property taxes have historically been low for real estate, as they have never been considered a major source of government revenue.

The legal closing process
The closing process usually takes 30-45 days, with documentation and escrow processes coordinated through a real estate office, a designated liaison attorney, and a Notary Public.

The Mexican notary system follows the Napoleonic Code, as in most European countries where the notary must successfully obtain his professional title in law, have two years specialization, and be an apprentice in the office of a notary, and in the end receive a appointment to obtain a place in one of the Notaries of a certain area.

Notaries are required to certify all documents before being accepted by the land registry, and are also responsible for collecting the various taxes that must be paid as part of the title transfer costs.

The notary acts effectively in both directions: from buyers and sellers, to ensure that there is a legal closure of all the required documentation. Closing costs are traditionally paid by the buyer, the seller must pay capital gains taxes and real estate fees.
The buyer and seller do not have to be present at closing, but can be represented by their legal representative through a power of attorney.

Buying Properties through a Corporation or Company.
The Foreign Investment Law now allows Mexican companies – even those with 100% foreign ownership – to own real estate in the “restricted” areas (that is, 50 kilometers from some aquatic body (lake, sea, etc.). ) and 100 kilometers from the borders), provided it is commercial property. Commercial properties carry higher rates on water and electricity services, in addition to requiring government reporting. Generally there are no advantages and there are more disadvantages when owning a commercial property to a residential one.

Maintain the Property
For condo owners, maintenance and security is handled by the Homeowners Association, so they must pay monthly fees. Homeowners, who have to be away from your property for a period of time, can hire a company to manage the expenses of the property.

Financing
The information to acquire real estate in Mexico can change dramatically over the years. For example, the real estate law in Mexico has changed regarding financing. Previously, a cash transaction was made to acquire real estate, although there were some financing cases. In the last year the scenario has changed a lot and now the financing in Mexico is now available.

Your financing for properties in the Riviera Nayarit can be approved from 30 to 60 days, but each case is different and may vary. Many people seek financing in Mexico, but they can also search in their home countries. American and Canadian banks now lend money for the purchase of real estate in Mexico, there are a lot of investment companies that also lend money for this purpose. One of the services that exist is to guide clients throughout the process of obtaining mortgage loans in Mexico, or to seek approval for financing.

Real estate law in Mexico, why not buy ejido land?
By David w. Connell
A very large portion of real estate in Mexico is classified as ejido land. An ejido property is not private property and cannot be bought and sold as it were. However, since the 1992 constitutional reforms, ejido land can be converted into private property and sold to third parties, including foreigners. This article briefly describes what an ejido is, how they are classified, and the ways in which they can become private property.

What is an ejido?
Generally speaking, an ejido is a group of people who live and work on a certain property as a community. Although the concept of ejido in Mexico is pre-Hispanic, most of the fundamental ideas and concepts that created what is now an ejido are derived from theories of democratic communism. Understanding this is very important when it comes to ejidos. Most of the people who read this article have grown up in a society based on democratic capitalism, where the individual and not the community determines what he or she is going to do. In a communist society, the community determines what it will do, including agreeing on how the land will be used.

With this in mind, it is easy to imagine the confusions that can exist when talking about property on ejido lands. Most foreigners associate the word “property” with words such as “absolute domain”, “private property”, “Adam Smith”, while the idea of ​​ejidatarios would be more along the lines of “community rights”, ” right to use and enjoy ”“ government concession ”. Until ejido land becomes private property, foreigners cannot acquire “ownership” of ejido land according to their understanding of the word “property.”

Please remember the following:

  1. Ejido lands cannot be sold to non-ejido members until it becomes private property. There are exceptions in which non-members of the ejido can acquire “possession” rights over ejido lands, however, the rules governing “possession” rights are not very safe, especially for foreigners.
  2. Foreigners cannot legally be ejidatarios.
  3. What an ejidatario understands by property is very different from what one understands by property.

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