1. HOW CAN I PURCHASE A PROPERTY IN MEXICO?
Foreigners can own property within Mexican territory, however, they cannot hold property titles within 100 km of the border and within 50 km of the coast. This area is known as the restricted zone. However, in Mexico there is a System that allows foreigners to purchase property, providing excellent protections for the property owner. To purchase real estate in the restricted zone, foreigners must acquire the property through a bank trust formalized with a Mexican banking institution. As the buyer, you will be designated as the main beneficiary who can designate substitute beneficiaries in the event of death, thus avoiding probate procedures in the event of death. The bank trust is established for 50 years, renewable for the same period of time. Before expiration, the trustee bank will inform you that it is time to extend the term for another 50 years.
2. CAN I ACQUIRE IN CO – PROPERTY?
3. CAN I PURCHASE THROUGH AN LLC?
4. IF THE BANK THAT HOLDS MY TRUST CLOSES, IS THERE ANY RISK OF LOSING MY PROPERTY?
5. WHAT ARE MY CLOSING COSTS?
Closing costs are generally paid by the buyer and vary on a case-by-case basis, depending on the purchase price, and are generally between 5% and 9% of the purchase price. Closing costs include notary fees, government taxes and duties, bank trust fees, government permits, title insurance fees, and more.
Seller is responsible for Capital Gains Tax, unpaid utilities and property taxes. Such fees must be paid at or before closing. ARK REALTY will make sure all items are paid for, so the buyer receives a clear title.
6. WHAT IS THE ROLE OF THE NOTARY PUBLIC IN MEXICO?
7. PROPERTY TAXES
8. ONCE I OWNER, HOW DO I TRANSFER TITLE?
As the primary beneficiary of the trust, you would instruct the trustee bank to:
i) extinguish the trust and transfer the title if the buyer is a Mexican national, or
ii) assigns the rights of the trust agreement to a foreign buyer
9. WHAT ARE THE NEXT STEPS:
1. FIND YOUR PROPERTY AND SUBMIT AN OFFER,
2. IF THE OFFER IS ACCEPTED, the following is:
– Carry out due diligence to verify that the property is in good legal standing.
– Draft the deposit and purchase contract in both Spanish and English.
– Coordinate with the notary public and the trustee bank the draft of the deed that will contain the trust.
– Receive funds in trust.
– Be a closing date to execute the deed.
– Release funds from the guarantee deposit, once the terms and conditions agreed by the parties are fulfilled.
– Submit a certified copy of the deed.
10. WHAT ARE THE DOCUMENTS THAT WERE EXPECTED TO BE PROVIDED FOR THE TRANSACTION?
– Copy of passport and driver's license.
– Copy of proof of address (no more than 3 months).
– KYC document (Know Your Customer).
– Entry visa at closing.