One common real estate question that’s asked in relation to real estate involves whether or not foreigners are permitted to own property in Mexico. The simple answer to this question is yes. Under Mexican law, however, foreigners are not permitted to own property that’s located in the country’s restricted zone, and a real estate trust fund must be established in order to keep the title held. A bank must also act on behalf of the foreigner because of the fact that they cannot actually enter into a real estate contract.
Typically, the following factors are involved in any real estate transaction that takes place in Mexico’s restricted zone:
*Real estate company
*Buyer’s lawyer
*Bank
*Public notary
Any transactions that take place outside of the restricted zone will never involve a bank since a trust doesn’t have to be established in any of those areas.
It’s also important to note that real estate transactions in Mexico are not conducted in the same manner as those in the United States of America. For starters, Mexico has yet to actually regulate these, and furthermore, the buyer must retain the assistance of a professional in order to complete the transaction.
There is also nothing similar to either a Department of Real Estate or Real Estate Commissioner in Mexico. Perhaps the best places to start the process itself are the American consulates and American Embassy, especially if you want to determine whether or not a real estate company is actually legitimate and reputable.
An attorney should also be retained in order to help draw up contracts, as well as review all of the terms and conditions of a sale. The attorney can also conduct a title search and locate any issues or alternatives that a buyer may be experiencing. Alternatively, American attorneys are not licensed to practice law in Mexico, nor are they recommended for obtaining information regarding Mexican law.
Thank you for visiting LOIT & Associates blog, a Mexico real estate lawyer. We write to inform people about Mexican laws regarding business and real estate.