Are you seeking advice for buying Mexico property? If you are, then you have come to the right website. Sometimes it can be scary when you are buying Mexico property. If you have a qualified attorney, which is a great idea, but not always needed, or you are using a professional and qualified real estate agency, then you will have no problem purchasing property in Mexico.
The purchasing process is very similar to your own country, and can go as follows:
- Agree on the price of the property verbally first
- Seek the service of a reputable notary public
- Draw up the “Convenio de Compra/Venta”, a sales agreement that will show all inclusions and exclusions of the property. At this time a deposit of 5-10% is made to the owner of the property, so if you decide to back out of the sale the deposit will be forfeited
- Keep in mind that you may have to use a property trust called fideicomiso for Mexico property purchases within 50km of the coastal and border zone areas. If your property is not within these zones, then you will not have to have a trust but may wish to do so regardless.
- Permission from the Foreign Secretary is needed if you are purchasing land. The “Calvo Clause” will need to be signed which relinquished your rights to any foreign jurisdiction over your property.
- Your notary public should look over all permits to make sure they are all in order, get a copy of the property deed, make sure the land is eligible for sale (not protected ejido land for example) and arrange to have an appraisal carried out. The Notary Public will ask the seller to show proof of tax receipts, utility bill payments, land fees, and any other receipts paid for the property.
- The Notary Public will also want to see legal proof such as a passport and photo identifications, visas, marriage certificate if you are married, birth certificates, six month permit as a tourist, and any other legal permits in Mexico. Be prepared for having some of these documents translated by an official translator.
- The seller is required to pay the Capital Gains Tax unless the buyer has agreed to pay this. You may agree to divide the capital gains tax.
- Final payment is due when carrying out the signing at the Notary Public’s office
Buying property in Mexico doesn’t have to be scary if you know what to expect and what to do.
Please leave a comment if you have found these tips and advice for buying Mexico property helpful.