Are you considering buying property in Mexico? Do not leave your wits at the border!

Think that laws and customs are different from one country to another. I will give you five suggestions to follow when buying property in Mexico.

1. Get a local attorney.

   A Mexican real estate attorney should be able to take you through the ins and outs of the process. Ask as many questions as you can. If you can’t think of any questions, ask your attorney to take you to the process from the start. Have your attorney review all documents before you sign anything.

2. Conduct a title search.

   A title search on the property is a must. You want to know who the owner of record is, whether the property has any liens, mortgages, easements, or encumbrances. Also, you want to know if the property has road access, city water, electricity, telephone lines, and other services. All these matters will show in the title search report.

   For properties under a condo regime, a title search will evidence whether homeowner’s fees are up to date. Ask for a copy of the Rules and Regulations of the condo regime to verify if pets are allowed.

3. Sign a contract.

   Have your attorney draw up a contract for you or ask your attorney to review and make any appropriate changes if the seller has already a contract. Never pay a down payment or earnest money without reviewing the contract first. Some sellers will ask you to sign an offer first. Make sure the deposit is refundable in the event you decide not to go ahead with the purchase.

4. Set up a trust or Fideicomiso.

   Foreign individuals or entities may not own real estate within the “restricted zone” (that is the strip of land 100 kilometers from the borders and 50 kilometers along the coasts). However, they may hold a beneficial interest under a trust agreement or fideicomiso. Under the Foreign Investment Law, the term for the permits for said trust agreements is 50 years (renewable for additional 50-year periods).

5. Get your title registered.

   Make sure your attorney files for registration of your title in the property tax office, and in the Public Registry of Property. By following these steps, yours will be a smooth buying process. If you need a lawyer to assist you in buying a property in Mexico, you can contact us here.