Buying a house is always fun but when it comes to buying a house in Mexico? Everyone turns to have an opinion about the matter even though they spend or contribute nothing in the process. Buying a house in Mexico especially for first-timers can be a little challenging like buying a home in any other country in the world. But with the case of this Latin American country, all you need do is to solely follow their laws (Mexican laws)!
Although there is this misconception that “it is impossible to buy a house a Mexico unless you lease it,” which of course is not true. One of the most important laws binding the purchase of properties in Mexico states that, although everyone is free to buy a house in Mexico, the transactions must be done under a Bank Trust called FIDEICOMISO (Escrow).
In addition, there is a clause in the law which also states that you can own the property for the term of the trust which is 50 years, after which you offerings are at liberty to renew for another 50 years. While the bank acts as a trustee you (the buyer) are the beneficiary of the trust. Such laws can only be changed by an act of Congress as it has been in effect for the best part of 30 years.
Furthermore, it is of prime importance to note that, most real estate personnel’s in Mexico are unlicensed. But there is however a group popularly known as AMPI (Association Mexicano Professional Imobilarios) which is like a realtor in the U.S. In order to undergo a legit real estate dealing in Mexico dealing with members of AMPI is the best option. This is so because, they have an enforced code of ethics bidding the association and its members and unlike the others, AMPI also offers multiple listing services.
Some of the steps involved in buying a house in Mexico
- Hirer a broker you are comfortable with.
- Do a little research to find the right house, in the right area, at the right price.
- The broker will prepare a contract to purchase (must be in Spanish).
- Table an earnest money deposit of 5% of the purchase price. This is non-refundable IF your offer is accepted.
The moment you offer is accepted, all you need do is to sit back and relax for this process takes between 30 to 90 days for all the paperwork to be done.
Points to Consider Before Buying a House in Mexico
Enclosed below are some of the points to consider before you buy a house in Mexico.
- Get Title Insurance From American Company
- Use American Escrow Company:
- Get All Contracts Translated To English:
- Pay All Property Taxes:
- Understand What A Fideicomiso Is
It is worthy to note that, the main purpose of the fideicomiso is geared towards aiding foreigners to buy real estate in the restricted zone while ensuring a safe and secure transaction with other companies involved. In Mexico, restricted zones are mostly around the coastlines and this rule is not applicable to everyone.
To conclude, it is always advisable for persons seeking to buy real estate in Mexico to do proper research on the where to buy, hiring the services of a competent agent to serve as your guide and most importantly, acquire proper documents needed to ensure the home is bought within the context of the law. The moment you have all of this handled buying a house in Mexico becomes easy and stress-free.