Things You Should Know About Acquiring Property in Mexico

• Foreigners can own property in Mexico and it’s extremely secure.  The laws of the Federal Government of Mexico provide very well for foreign buyers and/or investors. Mexico has become more liberal in providing ownership for foreign buyers in the so called Prohibited Zone areas. 
• There is a Prohibited Zone that runs along Mexico’s coasts and borders which is restricted to foreign buyers it extends 100 kilometers along all natural borders and 50 kilometers along all coast lines); however, foreign buyers can purchase property in this area through a Fideicomiso.
• What is a Fideicomiso? Basically, a Fideicomiso is a bank trust.  This becomes a trust between a Mexican bank and the buyer.  The Mexican bank has a fiduciary obligation to the buyer.   All instructions given by the buyer to the bank must be followed accordingly.  The buyer can enjoy the rights to his newfound property although the bank holds the title.  Terms for Fideicomisos are established for a maximum of 50 years and are renewed thereafter.
• There are many checks and balances to protecting your real estate investment. Owning property in Baja is backed by new foreign investment laws and provides the buyer comfort in knowing that his investment is safe.

Closing a Mexican Property Purchase

• Written offer is accepted by the seller
• Our team begins the process; obtaining the survey, getting a current appraisal, and obtaining a letter of instruction from the seller to the bank.  This letter holds the Trust to place in the new buyer’s name(s), which includes naming their beneficiaries.
• Our team opens a file with a Notary.
• Closing documents required; a lien waiver certificate, a letter from the bank stating the bank trust fees are current, the property tax receipt for the current year, a letter from the Home Owner’s Association that all fees are current and there are no pending assessments either with the Association or the Federal Zone.
• The Notary verifies the “Chain of Title” and will not sign the document until all the required documents are in order and are within the required time limit of 6 months of issue.
• For the appraisal and survey.

Necessary Requirements for Obtaining an FM 3 – Requirements for Working or Living in Mexico

• To apply for the change of migratory status; a person needs to indicate his/her  name, citizenship, address, passport number, and occupation in Mexico, if any.  All information must be stated in Spanish in original and on two copies.
• Current passport must be valid for at least 6 months after the filing of his petition.
• FMT (Tourist Visitor Visa) Original and copy.
• Proof of address in Mexico.  Must show original and copy of Trust or lease contract.  If it is a lease, it must be attached to lease contract – a copy of lessor’s I.D.
• Proof on income.