Foreign Ownership in Mexico

Introduction

Want to purchase property in this Sun, Sand and Surf Paradise known as Manzanillo?

Both Snow Birds and Foreign Permanent Residents can purchase property in Mexico. Depending on the location of the real estate they will purchase the property either via a Fideicomiso or with a Deeded Title process.

By law the Mexican Constitution prohibits the direct ownership of real property by foreigners in the "restricted zone", which is any land 30 miles from the coastline.

But the Mexican government has created a means for foreigners to own this property through a "Fideicomiso" or Real Estate Bank Trust. This Bank Trust follows the guidelines of Mexican law while protecting the foreigners' investment. Foreigners can own property in Mexico through the use of this Bank Trust that names the foreigner as the beneficiary.

As a beneficiary you have all the rights of an owner in that you can develop, improve the property or rent or sell it at any time with no restrictions. Most of the Mexican affiliated banks of Canada and the US will hold these trusts for the foreign investor. There is a reasonable yearly fee charged for the holding of the Bank Trust held property.

If you purchase a property outside of the 30 mile restricted zone you can hold title of the property directly in your name and do not need to do so through the Bank Trust method. You DO NOT need to have a Mexican partner on any Bank Trust held property or on any directly owned Title Property - that law was abolished years ago.

You can do a title search in Mexico. The process is similar to the process in Canada or the US. The search will confirm the named owner, the chain of title and will also list any liens or encumbrances against the property.

Foreigners can purchase Title Insurance if they have any reservations about purchasing property in Mexico. This will give them a guarantee that their investment is free and clear of all encumbrances and that title is correctly registered. When the new deed is registered the title insurance will be issued and guarantees you of clear title to the property. Your Notario will look after purchasing Title Insurance for you if you wish.

Thousands of Foreigners own property in Mexico and as long as you use a reputable Notario (Notary) (a Notario has basically the same power as an attorney or lawyer in the US or Canada) then you can rest assured that your investment will be safe.

Contracts in Mexico are written and executed in much the same manner as they are North of the Border. All documents must be in Spanish by law but for a reasonable fee you can have the documents translated to English for you.

   MEXICO 387-761-0832         CANADA 604-628-2491         USA 818-429-4120