Buying real estate in Mexico:
10 steps to do that right
10 steps to do that right
If you are fond of sunbathing on virgin beaches while enjoying the superb cuisine and fruity cocktails, investing in Mexican real estate will be the best decision in your life. With the endless variety of remote places and breathtaking landscapes, this country ranks among the world’s most gorgeous resort destinations offering its nationals as well as tourists the way to escape from everyday stresses.
Yet, Mexican real estate laws and the purchasing procedure are often associated with hidden pitfalls for foreign buyers since they are different from those in other countries. That is why we’ve prepared useful tips on how you can avoid acquisition-related problems.
Your must-read guide to property purchases in Mexico
1. Hire an experienced real estate agent
To make sure your investment meets will be met in their full, you need a qualified real estate agent. When it comes to diving in the Mexican housing market, it’s AMPI and MLS BCS members who provide the highest level of professionalism. Do your research to find a specialist who is well-versed in closing real estate deals.
2. Ask for single-client representation
If your estate agent represents both parties, conflicts of interest are to be expected. As a result, the transaction process will be gummed up. Thus, it makes sense to avoid dual agency services.
3. Stay clear of Ejidos
According to the Mexican laws, non-nationals cannot acquire ownership of communal land (or Ejido). Consequently, it cannot be legally transferred. When considering real estate purchases, private properties are your only options.
4. Deal with a title holder
Once all the documents are prepared, and you are ready to proceed to the transfer procedure, be sure to deal directly with a title holder or his/her authorized representative. Otherwise, you may encounter some legal issues throughout the process.
5. Take care of dispute resolution
It would be a good idea to include an arbitration clause in a deed so that any potential disputes between the parties are settled in a well-defined way. This will help you minimize the risk of endless legal wrangling.
6. Purchase title insurance
Even though it requires an in-depth title search, this type of indemnity insurance will protect your investments and ensure the security of your estate assets.
7. Find your best ownership option
If you are investing in Mexican real estate as a foreigner, you may qualify for several forms of property ownership. Consult your realtor to find out which one meets your needs perfectly.
8. Use unbiased third-party services
Title transfer is the most important stage that is associated with piles of paperwork and elaborate preparation. Therefore, you would be better off using third-party services for supervision.
9. Know your closing costs
In Mexico, real estate closing costs mostly depend on the property price and may go up to 20%. It’s recommended to know their amount before signing any documents not to be taken aback.
10. Protect your assets
An escrow is the safest way to protect your funds. Use this agreement to make sure your money is secured by a third party until the deal is closed.
Now you know how to end up with a successful real estate deal. All you need is to follow this 10-step guide prepared by Baja Properties.