NAVIGATING THE PURCHASE
A Guide for Americans and Canadians on Buying Property in the Riviera Maya, Mexico.
- Research and Choose a Reputable Real Estate Agent: Begin your property-buying journey by researching and selecting a reliable local real estate agent. A trustworthy agent with experience in the Riviera Maya market can provide valuable insights, guide you through the process, and help you find the perfect property that aligns with your goals and preferences.
- Legal Consultation and Documentation: Engage the services of a qualified local attorney who specializes in real estate transactions for foreigners. They will guide you through the legal intricacies, review all documentation, and ensure compliance with Mexican laws. It’s essential to have a clear understanding of property ownership regulations and any restrictions that may apply to foreigners. We have several options for you to choose from.
- Due Diligence: Conduct thorough due diligence on the property you intend to purchase. This includes verifying the title, confirming that property taxes are up to date, and ensuring there are no outstanding liens or legal issues associated with the property. This step is crucial to avoid potential complications after the purchase. Our legal team does this for our clients free of charge.
- Secure Financing: While most buyers choose to fund the purchase through their savings, 401K, home equity, etc, others opt for financing from their home country. Work closely with financial institutions and professionals who specialize in cross-border transactions to find the most suitable financing solution for your situation. Most foreigner citizens do not have credit in Mexico which, for the most part makes it a cash market.
- Negotiation and Offer: Work with your real estate agent to negotiate a fair price for the property. Once an agreement is reached, a written offer will be presented to the seller. This offer typically includes the purchase price, payment terms, and any conditions or contingencies.
6. Closing Process: The closing process involves finalizing the purchase and transferring ownership. Your attorney will ensure that all necessary documents are prepared and signed, and funds are transferred securely. This process typically includes the payment of closing costs, which may cover legal fees, notary fees, and property transfer taxes.
7. Property Registration: After the closing, it’s essential to register the property with the Public Registry of Property to formalize the ownership transfer. Your attorney will handle this step, providing you with the necessary documents as proof of your ownership.
Conclusion: Buying property in the Riviera Maya is a rewarding experience, but it requires careful navigation through legal procedures. By partnering with experienced professionals, conducting due diligence, and staying informed, Americans and Canadians can confidently make their dream of owning property in this tropical haven a reality.
THE TWO WAYS MOST FOREIGNERS TITLE PROPERTY IN MEXICO
1. FIDEICOMISO – SINGLE PROPERTY PURCHASE
Opting for a Fideicomiso is the prevailing choice among foreigners acquiring property in Mexico due to its similarity to a “real estate trust.” A Fideicomiso de Zona Restringida (a Real Estate Trust of a Restricted Zone). The Fideicomiso deed outlines the Purchaser’s (Trustee’s) full responsibility for property use, administration, maintenance, civil liability, rental income, mortgage loans, and sales proceeds, emphasizing that the trust institution bears no responsibility. A notable advantage of a Fideicomiso is its testamentary function, allowing you to designate beneficiaries who inherit the trust by presenting a death certificate and a brief request letter. Initial Fideicomiso bank fees, covering permits, a yearly fee in advance, and legal expenses, generally range from $2,000 to $2,500 USD. These fees are in addition to Buyer closing costs and the process typically takes two to three months to formalize.
2. MEXICAN CORPORATION – MULTIPLE PROPERTY PURCHASES
Mexican Corporations are primarily recommended for individuals seeking to establish a business presence in Mexico. Formation of a Mexican corporation, achievable within two weeks, requires a minimum of two partners (both can be foreigners; no Mexican citizenship necessary), incurring a maximum cost of $1,500 USD. This structure allows property acquisition as if you were a Mexican national. All transactions conducted through a Mexican Corporation involve payments via checks or wire transfers from the corporate bank account. Opting for a corporation is particularly advantageous for those planning to start a business or acquire property for non-residential purposes. It not only provides potential savings on income tax but also establishes a legal source of income in the country.
