Acquiring real estate in Mexico as a foreign investor has become more secure, efficient and transparent in the last 10 years. International property acquisition has increased dramatically, and even more at a significantly faster pace in recent years due to the growth opportunities in attractive local markets such as the Mexican Caribbean, known as the Riviera Maya.
Mexican law changes regarding foreign investment allow greater flexibility, freedom and legal security with regards to property rights to potential international buyers in search of residential properties in Mexico. However, real estate laws, rules and regulations are much different than other countries, especially those in the United States. Buyers looking for a place to live, to vacation or to retire must become familiarized with the basic legal requirements to acquire property in Mexican territory. Hence, it is highly recommended that early on in their search phase, investors seek knowledgeable and experienced real estate counsel.
The following are some tips to consider when looking to buy property in Mexico as a foreign investor:
- Start early on building your team of local property experts in Mexico: an established real estate broker and a respected title services company, who at the same time, will give you access to a team of Certified Real Estate Legal Advisors to coordinate your transaction from beginning to end.
- Obtain a complete copy of the current title deed, with the proper information from the Municipal Public Registry. This helps initially verify that whoever is selling has legal ownership of the property.
- Seek to have a complete Title Research. This is an important part of your due diligence and helps you to know the good standing of the title.
- Establish an Escrow Account to give you the right financial security that your deposits are held by an independent third-party in conformity with a predetermined contract, binding both the Seller and Buyer, to comply with the negotiated terms of the sale.
- Have your assigned Real Estate Legal Advisor, from the title firm, draft all important documents, in both English and Spanish, such as the Initial Offer, Promissory Contract, Escrow Agreement, Purchase & Sale Agreement, among others. This helps all parties engaged to fully understand all the terms and conditions of the acquisition.
- Engage with your title services firm to delegate the Closing Coordination efforts and manage all the legal minutiae and key legal details to have a successful transaction, and legal transfer of ownership.
- Initiate your Title Insurance coverage at the time of the closing along with registering the new owner at the Public Registry, making sure that all ownership transfer documentation is duly formalized.
Mexico is a beautiful and charming country, an excellent place to enjoy life at its fullest. Enjoying what this country has to offer as a foreigner investor is a wise decision. Hence, your security and peace of mind at the time of property acquisition are of utmost importance. Don’t jeopardize your piece of paradise, and enjoy your new property while building your family wealth. Always consider protecting your investment.