Guidelines for a Foreigner to Purchase Property in Mexico
Can a foreigner legally purchase property in Mexico?
A most definitive YES! It is a safe and secure process that we will walk you through from beginning to end.
A foreign purchaser (one who is not Mexican) must purchase their property with a Fidecomiso/Trust if the property is within 62 miles (100 kilometers) of the border or 31 miles (50 kilometers) of the coast. It is a 50 year Trust that is fully renewable in 50 years or can be assumed if the property is resold within the 50 year term. An advantage of the Trust is your heirs can receive the property without paying an inheritance tax.
Otherwise the purchasing process is very similar to your process at home. Using an agent to assist in selecting your property is recommended. The seller pays the commission for the sale of the property. A Notaria or Notary prepares the closing. The closing costs are based on the value of the property. Closing takes about 60 days to complete paperwork and to go to closing. We will even be there after the closing to guide you through utility connections and any questions you may have.
An Escrow service is used to safely hold all of the funds. There is a 750 USD fee cost for the buyer to open the escrow account once the offer is accepted and signed by all parties. A 10% of purchase price is then wired to this escrow account. Once the closing process is completed by the Notary, the seller send the balance of monies due to the Escrow company will be wired. The signing of the final documents at the Notary office is completed at closing. The Notary then requests that the funds be distributed to the seller and the agencies. The owner receives their keys to their new property and the number for their deed. It takes several months for the process to be completed and they will notify the homeowner when it is time to pick up their Deed. This Deed is important and should be kept in a safe place as it has original seals and signatures.