Purchasing a house in Mexico as a foreigner can be a complex process, but with the help of a lawyer, real estate agent, and other professionals, it is possible to navigate the process successfully and legally, here some recommendations to consider:
Restricted zone: There is a restricted zone in Mexico that extends 50 kilometers (about 31miles) inland from the coast and 100 kilometers (about 62 miles) from the borders. If you are a foreigner, you cannot own property within this zone, but you can obtain a long-term lease or set up a bank trust (fideicomiso) to hold the property.
Bank trust (fideicomiso): A bank trust is a legal arrangement where a Mexican bank holds the title to the property on behalf of the foreign buyer. This is the most common way for foreigners to purchase property in the restricted zone. The bank acts as a trustee and the buyer is the beneficiary, with the right to use, sell, or lease the property.
Real estate agent: It is recommended to work with a licensed real estate agent who is familiar with the local market and can help you navigate the process. The agent can help you find properties that meet your needs and budget, and can assist with negotiations and contracts.
Title search: Before purchasing a property, it is important to conduct a title search to ensure that the property is free of liens and encumbrances. This can be done through a lawyer or a title company.
Closing costs: The buyer is responsible for paying closing costs, which typically range from 3-5% of the property’s value. These costs may include attorney fees, transfer taxes, and registration fees.
Financing: It is possible for foreigners to obtain financing for a property purchase in Mexico, but it can be more difficult than for locals. It is recommended to work with a local bank or financial institution.
Zoning laws: It is important to be aware of zoning laws and restrictions, as they can impact how the property can be used and developed.
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