By: Jason Kay
Submitted: 2009-03-05 08:55:21 | Word Count: 544
Buying property in Mexico is much different than buying property here in the United States. In fact technically a foreigner is not even allowed to own property in Mexico. While this doesn’t mean you can’t get property in Mexico it does mean you have to take careful steps to ensure you are doing the deal properly.
Owning property in Mexico as a foreigner is known as owning in the Restricted Zone. Because a foreigner cannot legally own property in the restricted Zone you will have to appoint a Mexican Bank to act on your behalf as a trustee. As the trustee the bank will legally own the property, but you will hold the exclusive rights of ownership and can improve, rent or sell the property as though it was your own. One of the most trusted banks in Mexico is Banamex, which is actually owned by Citigroup.
[ advertisement ]
The first thing you should do is hire an attorney. Make sure that the attorney is licensed to practice law in Mexico. Having an attorney with you can aid in the different legal proceedings that take place in Mexico when it comes to buying property.
When you find a property in Mexico that you like, you need to make sure that the seller legally owns the property and can legally sell the property. If everything is alright with the property the seller should be able to provide you with a copy of the public deed stating ownership and a lien certificate with a description of the property. Have your attorney check to make sure that the paperwork is in order.
Next comes the offer. The offer should be done in written contract form and it is a good idea to have a copy done in both English and Spanish. The offer is usually accompanied with a deposit of between five and ten percent of the offer price. The contract is known as a “promise to buy” and the buying process begins after the seller accepts the offer. Once the seller accepts the offer, the buyer is normally expected to deposit half of the closing costs as spelled out in the offer to buy.
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 you agrees to comply with Mexican law and to waive their rights to foreign government intervention. By doing so, you are 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.
Once all is in order you are now ready to close on the property. The signing of all contracts or the “closing” must happen in front of a Notary Public. Before all the papers are signed you will be required to deposit the remaining money needed to complete the transaction. Once the contracts are all signed the funds are transferred to the seller and the property is transferred to the buyer. Transfer of the property typically is completed within 45 days. After that you –or rather the Mexican Bank will own a great piece of property in Mexico.
Author Resource:-
Learn how to buy anything at http://www.HowToBuyStuff.org, which features the latest consumer advice articles written by experts.
