For years now, Mexico has been a popular retreat for vacationers and home buyers alike and it is easy to see why. Playa Del Carmen itself has blossomed from being a sleepy fishing village to a bustling cosmopolitan town in only 15 years and it’s not showing any signs of slowing down. Many of the quiet towns along the coast of the Riviera Maya are experiencing this same boom in construction, foreign investment and new neighbors. Over the next three years the estimated growth is at 30% for the area. The tremendous growth rate is also opening up many business opportunities for foreigners and nationals alike.
One of the many advantages of buying Real Estate in Mexico includes getting more bang for your buck. Construction costs are significantly lower due to local materials (i.e., stone, marbles, ceramic, and exotic hard woods) being more affordable. The consistent Caribbean breeze keeps yearly temperatures moderate and comfortable.
In general, the cost of living is more affordable in Mexico. Fresh tropical fruits and vegetables abound and many high quality national products are readily available. A variety of imported products are also widely available and the selection grows daily.
There are many culturally important places to visit in Mexico. The state of Quintana Roo alone has many ancient Mayan ruins, cenotes (Mayan for “sacred well”), the Sian Ka’an Biosphere Reserve, incredible dive sites (Chinchorro banks, Cozumel) and historic cities such as Tulum, Felipe Carrillo Puerto and Chetumal. Other historic cities such as Merida, Campeche and Valladolid are a mere bus ride away, as are the ruins of Tikal and Palenque. Travel in Mexico is relatively inexpensive and easy, the bus service (ADO) is top notch and if by car gasoline is presently half the price of U.S.
The Riviera Maya has all the variety a potential buyer/investor could ask for: quiet undeveloped jungle areas, beautiful sandy beaches along the warm Caribbean coast, pristine cenotes, golf courses, amazing diving, a flourishing tourist industry and more importantly a rich, friendly culture of welcoming people.
Can foreigners own property in Mexico?
YES. Foreigners can own property in Mexico, including beach properties, through ownership of a Mexican Corporation or a Fidecomiso (Bank Trust).
Can foreigners get fee simple title in Mexico?
YES. Fee Simple Title can be obtained for foreign ownership of land in Mexico through ownership of a Mexican Corporation or Fidecomiso (Bank Trust) which holds the Title.
What is a Fidecomiso?
A Fidecomiso is a bank trust that is set up to hold ownership of land for a foreigner. The trust is for 50 yrs, is renewable, and the beneficiary has all the rights and obligations of ownership to buy, sell, improve, encumber or otherwise own the property in question.
How do I set up a Mexican Corporation?
A Mexican attorney can advise you and set up a Mexican Corporation. The corporation can be 100% owned by foreigners (minimum of two share holders). Shareholders of a Corporation are able to obtain an FM3 (work visa) for doing business in Mexico.
Do I need an attorney?
It is advisable for someone purchasing property in Mexico for the first time to seek qualified legal counsel.
What is a Notario and do I need one?
A Notario prepares and records titles and agreements, verifies that agreements are legal, and is official witness to and guarantor of signed and notarized agreements.
Any agreement, to be legal in Mexico, must be in Spanish and witnessed and recorded by a Notario.
What are the steps or procedures for making an offer and closing a property purchase safely in Mexico?
When an offer is made and terms are agreed to agreement is prepared and presented for signature, the buyer at that time places a deposit to guarantee performance. The title history of the property is then researched and a legal opinion on the history and counsel on the form of ownership to hold the property should obtained.
When all contingencies are satisfied, the sales contract documents are prepared. Then both Party's sign the documents before a Notario, the balance of funds according to the terms of the agreement are exchanged, and the then Notario records the completed sale.
Can I get title insurance in Mexico?
YES you can, it is possible to obtain US title insurance on Mexican Real Estate. We are pleased to offer Title Insurance for direct (or corporate) ownership, leasehold and trust or beneficial ownership ("fideicomiso") covering commercial and residential properties, including "ejidos" and restricted zone (beachfront and border) properties through a major international title company. Contact us for more information and to apply for title insurance.
What does the title insurance cover?
The policies include specific title risk coverage against marital rights, fraud, mortgages, mechanic's and/or tax liens, easements, contractual obligations restricting the use of the property, adverse possession by a third party, ejidos, forgery and other matters not of record (based upon our receipt of acceptable surveys, surveyor's certificates or affidavits, seller's affidavits and real property tax certificates). The policies insure against loss from defects in title unknown to the insured prior to the date of the transfer of title or loan that were not otherwise stated in the policy, regardless of whether the loss results from errors in the Public Registry, errors in the search of the Public Registry or any other cause. They also cover access to the land. The policies are written in English, insure in dollars and pay claims in dollars. They are U.S. policies covering land in Mexico issued directly by Title Company in the U.S. Coverage continues for the duration of time that the insured holds its interest in the real property.
Are there escrow services in Mexico?
Mexico does not have escrow accounts per se, funds are usually held by the Seller. However, through a major international title company, we are able to offer escrow services for Mexican transactions, with funds held in an international escrow account arranged through a major US bank. Contact us for information and to set up an escrow account.