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MAYA COAST PROPERTIES

Frequently Asked Questions - FAQ

COMPREHENSIVE FAQ ON BUYING REAL ESTATE IN MEXICO, COVERING LEGAL, FINANCIAL, AND PROCEDURAL GUIDANCE FOR FOREIGN INVESTORS.

GENERAL

  • TWO MAIN CONTRACTS ARE INVOLVED:

    • PROMISSORY AGREEMENT: A PRELIMINARY CONTRACT THAT OUTLINES THE TERMS OF THE PURCHASE.

    • FINAL AGREEMENT: PREPARED BY THE NOTARIO PÚBLICO TO OFFICIALLY TRANSFER THE TITLE.

    THE BUYER’S ATTORNEY SHOULD DRAFT OR REVIEW ALL CONTRACTS TO PROTECT YOUR INTERESTS.

  • NO, WITH A FIDEICOMISO OR THROUGH A MEXICAN CORPORATION, YOU HAVE THE SAME RIGHTS AS A MEXICAN CITIZEN TO RENT, DEVELOP, OR SELL YOUR PROPERTY. ENSURE THAT ANY DEVELOPMENT COMPLIES WITH LOCAL ZONING LAWS AND REGULATIONS.

  • A FIDEICOMISO IS A LEGAL TRUST AGREEMENT WHERE A MEXICAN BANK HOLDS THE TITLE TO THE PROPERTY ON BEHALF OF THE FOREIGN BUYER. THE BUYER RETAINS FULL CONTROL AND RIGHTS TO THE PROPERTY, INCLUDING THE ABILITY TO SELL, LEASE, OR DEVELOP IT.

    KEY POINTS:

    • VALID FOR 50 YEARS AND RENEWABLE.

    • AVOIDS INHERITANCE TAXES AND SIMPLIFIES ESTATE PLANNING.

    • REQUIRES A PERMIT FROM THE MEXICAN SECRETARY OF STATE.

  • TO CREATE A MEXICAN CORPORATION:

    1. OBTAIN A PERMIT FROM THE DEPARTMENT OF EXTERIOR RELATIONS.

    2. REGISTER THE NAME OF THE CORPORATION.

    3. DRAFT AND NOTARIZE THE ARTICLES OF INCORPORATION WITH THE ASSISTANCE OF A NOTARIO PÚBLICO (PUBLIC NOTARY).

    4. REGISTER THE CORPORATION AND OBTAIN A TAX ID (RFC) AND NECESSARY PERMITS.

    A MEXICAN ATTORNEY CAN ASSIST WITH THE ENTIRE PROCESS.

  • THE KEY PARTIES INVOLVED ARE:

    • REAL ESTATE AGENT: ASSISTS WITH FINDING AND NEGOTIATING PROPERTIES.

    • BUYER’S ATTORNEY: REVIEWS CONTRACTS, PERFORMS TITLE SEARCHES, AND ENSURES LEGAL COMPLIANCE.

    • SELLER: TRANSFERS OWNERSHIP OF THE PROPERTY.

    • NOTARIO PÚBLICO: VERIFIES AND FINALIZES THE TRANSACTION, ENSURES ALL DOCUMENTS ARE LEGITIMATE, AND REGISTERS THE DEED WITH THE PUBLIC REGISTRY.

  • THE NOTARIO PÚBLICO IS A SPECIALIZED ATTORNEY LICENSED BY THE STATE TO OVERSEE AND FORMALIZE PROPERTY TRANSACTIONS. THEIR DUTIES INCLUDE:

    • PREPARING AND NOTARIZING THE PROPERTY DEED.

    • VERIFYING THE TITLE AND CONDUCTING PUBLIC RECORD SEARCHES.

    • COLLECTING AND PAYING TAXES (PROPERTY AND TRANSFER TAXES).

    • REGISTERING THE TRANSACTION WITH THE PUBLIC REGISTRY.

  • WHILE A NOTARIO PÚBLICO OVERSEES THE LEGAL PROCESS, HIRING AN INDEPENDENT ATTORNEY PROVIDES ADDITIONAL SECURITY. THEY CAN:

    • PERFORM THOROUGH TITLE SEARCHES.

    • DRAFT AND REVIEW CONTRACTS.

    • ENSURE COMPLIANCE WITH MEXICAN LAWS.

    • REPRESENT YOUR INTERESTS IN ALL ASPECTS OF THE TRANSACTION.

  • THE PUBLIC REGISTRY OF PROPERTY IS A GOVERNMENT OFFICE THAT KEEPS OFFICIAL RECORDS OF PROPERTY TITLES AND LIENS. IT ALLOWS THIRD PARTIES TO VERIFY OWNERSHIP, CHECK FOR ENCUMBRANCES, AND ENSURE THE LEGALITY OF TRANSACTIONS. ALL DEEDS AND TRANSACTIONS MUST BE REGISTERED HERE TO BE LEGALLY BINDING.

    • CAPITAL GAINS TAX: PAID BY THE SELLER, BASED ON THE INCREASE IN PROPERTY VALUE.

    • TRANSFER TAX: PAID BY THE BUYER, TYPICALLY 2-4% OF THE PROPERTY VALUE.

    • PROPERTY TAX: ONGOING ANNUAL TAX BASED ON THE PROPERTY’S ASSESSED VALUE, WHICH IS GENERALLY LOW COMPARED TO OTHER COUNTRIES.

BUY & SELL

  • YES, IT IS SAFE FOR FOREIGNERS TO PURCHASE LAND IN MEXICO. THE MEXICAN GOVERNMENT HAS ESTABLISHED LEGAL FRAMEWORKS TO ENSURE THE SAFETY OF FOREIGN INVESTMENTS. PROPERTIES WITHIN 50 KILOMETERS (31 MILES) OF THE COASTLINE OR 100 KILOMETERS (62 MILES) OF INTERNATIONAL BORDERS FALL UNDER THE "RESTRICTED ZONE," BUT LAWS HAVE BEEN ADAPTED TO ALLOW FOREIGNERS TO ACQUIRE RIGHTS TO PROPERTY THROUGH SPECIFIC LEGAL MECHANISMS LIKE BANK TRUSTS (FIDEICOMISO) OR MEXICAN CORPORATIONS.

  • YES, FOREIGNERS CAN OWN PROPERTY IN THE RESTRICTED ZONE THROUGH TWO LEGAL METHODS:

    • RESIDENTIAL USE: A BANK TRUST, KNOWN AS A FIDEICOMISO, IS ESTABLISHED WITH A MEXICAN BANK ACTING AS THE TRUSTEE. WHILE THE BANK HOLDS THE TITLE, THE FOREIGN BUYER RETAINS FULL RIGHTS TO USE, LEASE, IMPROVE, OR SELL THE PROPERTY. A FIDEICOMISO IS VALID FOR 50 YEARS AND CAN BE RENEWED OR TRANSFERRED.

    • COMMERCIAL USE: FOREIGNERS CAN FORM A MEXICAN CORPORATION (SOCIEDAD ANÓNIMA) WHICH CAN DIRECTLY OWN PROPERTY IN THE RESTRICTED ZONE WITHOUT REQUIRING A TRUST.

  • TO CONFIRM LEGAL OWNERSHIP:

    • REQUEST A LIEN CERTIFICATE (CERTIFICADO DE LIBERTAD DE GRAVAMEN), WHICH PROVIDES DETAILS OF THE OWNER, LEGAL DESCRIPTION, AND ANY ENCUMBRANCES ON THE PROPERTY.

    • CONDUCT A TITLE SEARCH THROUGH THE PUBLIC REGISTRY OF PROPERTY.

    • HAVE A MEXICAN ATTORNEY REVIEW THE SELLER’S DOCUMENTS AND PROVIDE A LEGAL OPINION.

    • IDENTIFY THE PROPERTY YOU WANT TO PURCHASE AND AGREE ON A PRICE.

    • SIGN AN INITIAL OFFER OR PROMISSORY AGREEMENT OUTLINING THE TERMS.

    • PAY A DEPOSIT TO SECURE THE PROPERTY.

    • IF THE PROPERTY IS IN THE RESTRICTED ZONE, SET UP A FIDEICOMISO OR MEXICAN CORPORATION.

    • WORK WITH A NOTARIO PÚBLICO AND YOUR ATTORNEY TO VERIFY ALL DOCUMENTS, TITLES, AND PERMITS.

    • COMPLETE THE TRANSACTION BY SIGNING THE DEED AND PAYING ASSOCIATED COSTS.

  • FOR THE BUYER:

    • PASSPORT AND PHOTO ID.

    • BIRTH AND MARRIAGE CERTIFICATES (IF APPLICABLE).

    • VALID VISA OR RESIDENCY DOCUMENTS.

    FOR THE SELLER:

    • ORIGINAL PROPERTY DEED.

    • CURRENT PROPERTY TAX RECORDS.

    • UTILITY BILLS AND LAND-SERVICE FEES WITH A ZERO BALANCE.

  • FINANCING OPTIONS ARE AVAILABLE BUT LIMITED FOR FOREIGNERS. MANY BUYERS CHOOSE TO PURCHASE PROPERTY OUTRIGHT. IF FINANCING IS NEEDED, SOME BANKS AND PRIVATE LENDERS OFFER MORTGAGE OPTIONS TO FOREIGN INVESTORS. IT IS ADVISABLE TO CONSULT A FINANCIAL EXPERT FAMILIAR WITH MEXICAN REAL ESTATE.

  • CLOSING COSTS GENERALLY INCLUDE:

    • BUYER’S RESPONSIBILITY: TRANSFER TAX (TYPICALLY 2-4% OF THE PROPERTY VALUE), NOTARIO’S FEES, REGISTRATION FEES, AND ANY BANK TRUST SETUP FEES.

    • SELLER’S RESPONSIBILITY: CAPITAL GAINS TAX AND REAL ESTATE BROKER’S COMMISSION.

    EXACT COSTS VARY DEPENDING ON THE PROPERTY VALUE AND LOCATION.

    CLOSING COSTS GENERALLY INCLUDE:

    • BUYER’S RESPONSIBILITY: TRANSFER TAX (TYPICALLY 2-4% OF THE PROPERTY VALUE), NOTARIO’S FEES, REGISTRATION FEES, AND ANY BANK TRUST SETUP FEES.

    • SELLER’S RESPONSIBILITY: CAPITAL GAINS TAX AND REAL ESTATE BROKER’S COMMISSION.

    EXACT COSTS VARY DEPENDING ON THE PROPERTY VALUE AND LOCATION.

  • YES, AS A FOREIGNER, YOU CAN SELL YOUR PROPERTY. IF THE PROPERTY IS UNDER A FIDEICOMISO, THE NEW BUYER CAN ASSUME THE EXISTING TRUST OR CREATE A NEW ONE. ALL TRANSACTIONS WILL INVOLVE A NOTARIO PÚBLICO AND FOLLOW MEXICAN LEGAL PROCEDURES.

  • YES, PROPERTY INSURANCE IS AVAILABLE AND RECOMMENDED. COVERAGE CAN INCLUDE PROTECTION AGAINST NATURAL DISASTERS, THEFT, AND LIABILITY. CONSULT LOCAL INSURANCE PROVIDERS FOR OPTIONS.

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