Frequently a question of legal relevance arises between the foreign community that lives or visits our country. Can foreigners buy property in Mexico?
The answer is yes, according to Article 27 of the Political Constitution of the United Mexican States.
However, we must consider three variable points: First, there is a “restricted zone”in which foreigners can not acquire property directly. If the property is within an area 100 km from an international border and 50 km from the coast it can only be acquired through a trust. Second, outside of that “restricted zone”, foreigners can legally acquire any type of real estate through a permit to purchase real estate in Mexico. Third, for non-residential properties, foreigners can acquire real estate through Mexican owned foreign companies. That company can be created through a notary and must make monthly statements. The two main conditions are the acceptance of foreigners to be governed by Mexican law, and that the property is registered as non-residential before the Ministry of Foreign Affairs.
But what is a trust and how does it work?
The trust is a contract by which a person transfers to another specific merchandise or money to be assigned to a legal order. The legal effect of the trust is to maintain the fiduciary and the temporary ownership of real estate.
Although from the legal point of view they are completely different, the truth is that from the practical aspect there is no great difference between a regular sale and a fideocomiso, except the participation of a fiduciary institution that will be the one that holds the property registry for profit , unique and exclusive use of the person who has acquired the real estate.
A great advantage is that the trust contemplates a clause for hereditary purposes. In the event of the death of the owner, it will not be necessary to carry out any kind of dilatory judgment that, in most cases, is expensive. Automatically, and through a public deed, the ownership of these rights will be transmitted in favor of the beneficiaries that were designated at the time.
The Notary Public plays an important role in the purchase and sale of real estate, much more important than in most countries. The governor of the state designates the notary public as responsible for the execution of several key aspects of the transaction, such as the authentication of legal documents, the search for title deeds and deeds (for encumbrances or other legal and financial matters), tax collection , revisions of construction permits (if applicable), calculation of taxes on capital gains, etc.
The notary is basically responsible for ratifying real estate transactions; therefore, if the transaction of the property is carried out without a notary and is not settled in the public registry, then it is invalid, placing the buyer in a position where he or she may lose the property without legal recourse.
Notaria 210 provides legal assistance for any case. We have specialized advice for the acquisition of all types of properties.
We take care of the whole process always thinking about customer satisfaction. You can contact us with total certainty.
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