Buying real estate in Mexico’s restricted zone (within 50 km of the beach and borders) requires four parties. Each aims to help prospective buyers and provides services for a better real estate transaction. These parties are: a Mexican bank that can provide a fideicomiso trust; a Mexican Notary Public; a reputable real estate company; and a Mexican lawyer. The later two are optional but highly recommended.
Mexican bank that can provide a fideicomiso trust
When buying real estate in Mexico, you have the right to choose any suitable bank ensuring that your transaction is legal and appropriate. The Mexican bank you choose will be authorized to act as the Trustee (fideicomiso). Choose a bank with an established trust which will issue the trust for your real estate. The bank has no power to transfer ownership of the property, change the beneficiary rights, or do anything about the property without your written consent. The trust is guaranteed indirectly by the government and Mexican banks have government protection against bankruptcy. The bank only acts as the steward, and the owner has the absolute authority and control over the property.
A Mexican Notary Public
Certified by the state and federal government to act as an official and unbiased representative of the government of Mexico when buying real estate in Mexico, a Mexican Notary (Notario Publico) is very similar to a notary in Canada. He or she also has a greater responsibility than a notary in the US. To be a Mexican Notary means you have passed stringent exams as required by the Mexican government. Original records are properly secured and recorded with the Public Registry of Property. A Notary can be held liable in both civil and criminal terms that is why a Notary’s role is taken very seriously in Mexico.
The notary performs various tasks like authenticating legal documents, calculating of capital gains tax, and ratifying all real estate transactions in Mexico. If a real estate transaction is not ratified before a notary and duly recorded in the Public Registry, the transaction may be considered as invalid and not enforceable. The Notary’s responsibility lies within the sphere of the buyer, the seller, and the Mexican government. You will experience smooth and reliable transactions with the aid of the Notary Public.
A Reputable Real Estate Company
Having the right people on your side is so important when buying real estate in Mexico. In order to have a smooth buying experience, you need to have a team of experienced, knowledgeable and dedicated real estate agents who will guide you through each step. Buying a property will be more secure and smart when you have a great team. You do not need a realtor when buying real estate in Mexico but it is certainly recommended.
A Mexican Lawyer
An attorney will represent you and protect all your legal transactions. It is therefore recommended to have an attorney. Only a licensed Mexican attorney can draw up contracts and review the terms and conditions of the purchase. A licensed Mexican attorney can provide legal advice and represent your best interests. Aside from protecting your legal transaction, an attorney can also help you save money. With their established connections with banks, notaries, and the Mexican government, you will have many options for the attorney to give you the assistance you need. Having a legal adviser is not only important, it is a wise and efficient ingredient when buying real estate in Mexico.