PURCHASING A HOME IN MEXICO

Yes - foreigners can own real estate in Mexico, but there are restrictions and issues to be considered.   The following information is important when considering the ownership of real estate in Mexico.  Please keep in mind that the realtor you select will be your guide thoughout the transaction.  Therefore, it is extremely important to select one that is not only a well qualified real estate professional, but one that is also "business savvy".

During recent years, the importance of foreign investment to the economy of Mexico has become increasingly important and has lead to changes to its real estate laws.  Today, foreigners have expanded opportunities to purchase and invest in Mexican real estate.  In the inland portions of Mexico, the purchase of real estate by foreigners has the same legal basis as in the United States.

However, ownership by foreigners is restricted within 31 miles of Mexico's coastline and 62 miles of its borders.  This - restricted zone - effects most vacation ownership locations. Within the "restricted zone," a foreigner purchased the beneficial interest in real property through a bank trust or "fadeicomiso".  In this bank trust, the buyer of the property is designated as the "fadeicomisario" or the beneficiary of the trust.  While legal title is held by the bank, (specifically the trustee of the trust or the "fiduciario," ) the trustee must administer the property in accordance with the instructions of the buyer (the beneficiary of the trust).

The property is not an asset of the bank and the trustee is obligated to follow every lawful instruction given by the beneficiary to perform legal actions, i.e., rent it, make improvements, sell it, etc.  Most new trusts have a time period of 50 years. But, these trusts are almost always renewable for another 50 years.  An important point to be aware of is that in exchange for the ability to invest in real estate in Mexico, you agree that only the laws of Mexico will apply to any of your real estate transactions.  In the courts of Mexico, you will be treated the  same as if you were a citizen of Mexico. You cannot use the legal system of Arizona or the United States federal government in the event of disputes or adverse rulings.

Should you be thinking about an investment or vacation home in Rocky Point, give us a call  -  1 866 316 5575 - to discuss your interests and address your concerns OR complete the contact form and we will call you back.