WHY BUYING PROPERTY IN THE MEXICAN CARIBBEAN ?
Not only the sun and the white sandy beaches, combined with the turquoise coloured sea, but also the boom of shopping centres, services, businesses and entertainment centres convert the Mexican Caribbean into the most important residential tourist destination in Latin America . Giving you an average annual appreciation of 15 – 20 %
now is the moment to invest in property. See our very interesting pre-construction offers for luxury condos which are often sold out before construction is completed. Remember: the earlier you buy the better the deal!
CAN A FOREIGNER PURCHASE PROPERTY IN MEXICO ?
YES, THROUGH A REAL ESTATE TRUST OR ¨FIDEICOMISO¨
Out of security reasons the Mexican government allows foreigners, within the restricted zone of 50 km from the coastline and 100 km from any border, to own property only with a bank trust or fideicomiso.
The bank holds the trust deed for the purchaser of the property but the property is not part of the bank´s asset and cannot be subject to any lien or attachment for any bank obligations. You have the right to appoint substitute beneficiaries who will receive the rights in case of death during the life of the trust. The heirs would not have to go through a long process in Mexican courts, they only inform the bank showing the death certificate and their identification. The bank will then register them as the new owners.
A big advantage of the trust is, that the bank would automatically review the transaction to ensure it was legal and, together with the notary check the documents before allowing the closing, making sure that the purchased property is legal and without liens.
HOW LONG DOES A TRUST REMAIN IN EFFECT AND CAN IT BE RENEWED?
The normal trust period is for 50 years but it can be easily renewed by giving instructions to your bank. In case you sell the property the trust can also be transferred to the new owner if desired. There is a fee for setting up a bank trust and these fees vary from bank to bank.
Buy Cancun / Caribbean Habitat will help you with all the paperwork to set up your trust!
Find out more about the legal aspects of Trusts or ¨Fideicomisos¨
In Mexico you don´t have to hire an attorney for the closing of your transaction. Notaries are by the state government appointed lawyers who have the power and authorization to close real estate transaction. Before closing the Notary determines the costs which will usually run between 5 – 7 % of the sales price of the property.
Buy Cancun / Caribbean Habitat will assist you in the whole process.