MEXICO- Ten Rules to Buying Property in Mexico
Here are 10 rules to Buying property in Mexico:
1- Get title insurance from an American Company. Stewart Title's been insuring property in Mexico since 1994. First American and Land America insure down there also. Mexican sellers (and their agents) will tell you you don't need it but do NOT listen. You need title insurance or NO deal.
2- Check to see how you have to hold title. The "restricted zone' for foreigners is 100km from a border and 50km from the coast. Baja California peninsula is, in effect, mostly in the restricted zone. You can hold property fee-simple in outide of the restricted zone but need to use a bank trust or fideicomiso
3- Get a referral from someone who owns property about a reputable Realtor down there. There are no licensing requirements for Realtors but many belong to AMPI which is an organization similar to NAR. In fact, NAR announced an association with AMPI and is having a joint conference with AMPI.
4- Understand the role of a notario publico as a title search agent, closing agent, and county recorder.
5- Get all contracts, promises, representations, and warrants in English (or have them translated). Any reputable firm will have them available.
6- Use an American escrow company. The title company can offer their "in-house" escrow company; use them.
7- Examine the document called the condominum regime (regimen de condominio) to see owners' right, obligations, and restrictions. These are similar to our CCRs.
8- There is no requirement for sellers-disclosure in Mexico. Caveat Emptor!
9- Mexican Corporations have restrictions against foreign ownership now. Using a Mexican Corporation to buy property isn't as advantageous in the past. Don't be awed by the Mexican corporation that comes with the property; it may be useless to you.
10- Pay your taxes ! The IRS is called Hacienda in Mexico and they will lien and foreclose on your property if you do not file or underpay your tax bill.
- Last edited October 12 2012
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