Buying property in Mexico is entirely different from buying property in the United States. Technically a foreigner is not even permitted to own property in Mexico. However, this doesn’t mean you can’t gain access to a property in Mexico; it does mean you have to take cautious steps to ensure you are doing the deal legitimately.
You will have to engage a Mexican Bank.
Owning estate in Mexico as an outsider is known as possessing in the controlled Zone. Since a foreigner cannot lawfully own property in the Restricted Zone, you will have to engage a Mexican Bank to act on your behalf as a trustee. As the trustee, the bank will lawfully own the property, but you will possess the exclusive rights of ownership and can develop, rent or sell the property as if it was your own. One of the most trusted banks in Mexico is the Banamex, which is owned by Citigroup.
Make sure that the agent is licensed to practice as a realtor in Mexico.
The first step to own property is to engage the service of a registered real estate agent. Make sure that the agent is licensed to practice as a realtor in Mexico, check on SEDETUS. Having an agent with you can aid in the different legal and technical proceedings that take place in Mexico when it comes to procuring property.When you discover a property in Mexico that you like, you need to ensure that the seller is the legitimate owner of the estate who can legally sell the property.
If everything is alright with the property, the seller must be able to provide you with a copy of the public deed showing ownership and alien credentials with a description of the property. Have your agent check to ensure that the paperwork legit.
What next is the offer, the offer must be made in a written contract form, and it is a wise idea to have a copy complete in both English and Spanish. The offer is generally accompanied with a deposit of between5 and 10 percent of the offer price. The contract is also known as “promise to buy,” and the buying process begins after the seller acknowledges the offer. Once the seller endures the offer, the buyer is usually expected to deposit half of the closing costs as stated in the offer to buy.
foreigners constantly need to register the ownership at the Ministry of Foreign Affairs.
With any real estate purchase, foreigners constantly need to register the ownership at the Ministry of Foreign Affairs where the rights to property are granted when you agree to conform with Mexican law and to reserve their rights to foreign government interference. By doing so, you are recognized as a Mexican National with the corresponding rights. In the case of acquisition of estates in the Restricted Zone, it is the bank that needs the acquisition of the property at theMinistry of Foreign Affairs.
The signing of all contracts must take place in the presence of a Notary Public.
Once all the necessary documentation is compiled, you are now ready to close on the property. The signing of all contracts or the “closing” must take place in the presence of a Notary Public. Before all the documents are signed, you will be obligatory to deposit the remaining money needed to complete the deal. Once all the paperwork is done, the funds are transferred to the seller, and the property title and ownership is transferred to the buyer. Transfer of the property usually is concluded within 45 days. After the whole process, you or the Mexican Bank will own a great piece of real estate in Mexico.