When it comes to the Restricted Zone, the only legal way a foreigner can buy property is through a bank trust. The buyer can appoint the Mexican bank of their choice to act as a trustee on their behalf. As a trustee, the bank will actually legally own the property. However, all the rights to the property will exclusively be held by the buyer. What this means is that the buyer will be able to use, improve, rent or even sell the property as though they directly owned the property.
Please note that most Mexican banks have been purchased by foreign conglomerates, so that if your trust comes from Banamex, you are actually dealing with Citibank. In the case of Santander, the bank is a subsidiary of the eponymous Spanish financial group in the case of Scotiabank it is a Canadian organization, etc. This situation can make some buyers more comfortable. If you would like to work with a reputable Mexican institution, Banorte is the largest independent Mexican bank.
Registration at the Ministry of Foreign Affairs
With any type of real estate acquisition, foreigners always need to register the ownership at the Ministry of Foreign Affairs. The rights to ownership are granted when the foreigner agrees to comply with Mexican law and to waive their rights to foreign government intervention. By doing so, the foreigner is considered as a Mexican National with the corresponding rights. In the case of acquisition of property in the Restricted Zone, it is the bank that requests the acquisition of the property at the Ministry of Foreign Affairs.
The signing of contracts or “losing“ the transaction must happen in front of the Notary Public. Just before this is done, the remaining amount needs to be deposited (once again these should be to the accounts of the notary or closing agent). With the signing and certification of the contracts, the deposits are transferred to the seller and the property to the buyer. It is common practice that the buyer pays the closing costs involved including acquisition tax, notary fees and other expenses. After signing the contracts and depositing the payments, the transfer of the property should not take longer than 45 days. And then that property in Mexico is yours!
| Jardines del Bosque |
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Los Olivos |
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Paseos de Los Olivos |
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Mediterraneo Club Residencial |
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Las Gavias Club Residencial |
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Las Gavias Golden Shores |
Av. Camarón Sábalo #1005 Mazatlán, Sin. Tel:(669)913.0314 Toll Free:(877)353.7474
If you‘re interested in living in Mexico the first thing you need to find out is where you would like to live. Mexico has a fantastic variety of living environments on offer. In our Cities section you we find detailed information on many places throughout Mexico. Naturally, you will also need to find a property that suites your needs. SolutionsAbroad now has its own exclusive on-line directory of property for sale in Mexico and exclusive developments in Mexico. You can also ask any of our very well-qualified Certified Service Providers listed under Real Estate in our Business Directory for guidance.
Once you have found the perfect place and the ideal property, there are several procedures you need to fulfill in order to successfully own or obtain the rights to that real estate. With accurate information and by hiring the right advisors, you can safely buy real estate in Mexico. Here we have outlined the general buying procedure.
Holding Title The first thing you need to do is, to make sure that the seller legally owns or holds title to the property. Likewise, you will also need to check that the owner is actually in the legal position to sell the property. As anywhere, you shouldn‘t rely on information provided by the seller. Instead you should see the proof for yourself!
- The seller must be able to provide a copy of the public deed (“escritura publica“) stating legal title of the property.
- He or she must also have a lien certificate (“certificado de libertad de gravamen“) with a legal description of the property. A Mexican lawyer or title insurance company should also be able to check this for you.
Public Notary After the offer has been accepted, the public notary (a government-certified lawyer) will handle and notarize all the closing documentation necessary for the proper transfer of real estate. This includes the registering of wills, appraisal of property for tax reasons, certificate of title search, the formation of corporations etc.
