Buying property in Mexico doesn’t have to be a worry; in fact, buying Mexico property has many of the same procedures as purchasing a property back home. Hiring an attorney or legal adviser who is bilingual will be a great help and you should seek out a reputable notary public before handing over any money. However, before hunting around for a notary public or bilingual legal adviser, here are a few things you should know about purchasing Mexico Property:
- Once you have found the Mexico property that you wish to buy, you must make a verbal offer to the owner. If this amount is agreed, you can then start working on the sale agreement with an attorney.
- When you have come up with a verbal agreement, a formal “Convenio de Compra/Venta” purchase/sales agreement should be drawn. This contract should outline all the costs and fees, exclusions and inclusions and deadline for payment. At this time a deposit is applied that can be five to ten percent, so the owner is protected if you back out of the purchase.
- If the Mexico property that you are wanting to purchase is located inside the coastal border zone, which is 50km from the coast or borders, then a trust will need to be set up, but if the property is not located in this zone, then no trust is needed. This trust is called a fideicomiso and is a service offered by most major banks in Mexico.
- Permission will needed to be granted to buy land in Mexico by the Foreign Secretary. A “Calvo Clause” is a legal paper that you will be asked to sign to state that you will not seek any foreign jurisdiction for the purchase.
- Any property being purchased from a developer will need a Notary Public to look over any permits with the developer. The Notary Public will also check the deeds for private Mexico property, making sure that the land is not ejido land (community land) and can conduct the appraisal for you.
- You will need to make sure you have copies of official documents, which include passports, birth certificates, marriage licenses if applicable, a tourist permit or visa. Some of these may require translation and an apostille stamp. Translations must be carried out by an official translator (perito).
- Take into consideration Capital Gains tax. This tax is usually paid by the seller but check your contract to be sure.
- The final payment should be done at the Notary Public’s office and the deed will be turned over and signed over to you, the buyer.
For more information about Mexico property, check out the other articles on this website.