Buying Property In Mexico

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The Mexican government relaxed its foreign investment laws in
1993, as an effort to increase industrial development, expand
Mexico's job market and increase industrial output. The Foreign
Investment Law (FIL), enacted in 1993, generally allows non
Mexican investors to own up to 100%of the capital stock on any
Mexican corporation or partnership.

Americans and other foreigners may purchase property in the
interior of Mexico. Foreigners cannot own property outright
within the "trust fund zone" (area within 100 kilometers of land
borders and 50 kilometers of the coast). If they choose to purchase
within the "trust fund zone", a real estate trust must be established
to hold title for the foreigner. Foreigners must use the services of
a bank in order to buy real estate. In this case, the bank would act
muck like a trust to hold the property because foreigners cannot
contract independently.

Real EState Transactions in Mexico.
Generally, there are three to four parties involved with any
transaction of real estate in the restricted zone. These parties
would be as follows:
A real estate company
The buyer's lawyer
A bank
A public notary

These parties provide assistance in the real estate transaction
through their respective areas. Real estate transactions that fall
outside of the restricted zone don't require the assistance of a bank
when purchasing real estate as their is no need to establish a real
estate trust in these outlying areas.

Basically, buying property in Mexico is much the same as buying
property in the a U.S. Even though the paperwork required when
purchasing property in Mexico is quite similar to buying real
estate in the U.S., it is important to know that many aspects are
completely different and so foreigners should never 'assume'
anything. In Mexico, buyers must retain professionals to assist in
the transaction. Bear in mind that real estate agents and brokers in
Mexico are not legally licensed in Mexico. Thus, a foreign buyer
can't always depend on the so called "normal safeguards" that
would be applied to buying real estate in the U.S. This brings new
meaning to the phrase "let the buyer beware".

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