Welcome to CT&TM. We offer the largest selection of Mexico real estate for sale. High quality listings of Mexico properties  -  condos, houses, lands and businesses. If living in Riviera Maya is one of your dreams, we invite you to contact our specialists in investment property and real estate to benefit from our knowledge of the property market of Riviera Maya and enjoy our step-by-step support. But first, have a look at our premium selection, we are confident that you will find the property that suits your dreams and needs. Whether you are looking to purchase a second home as a dream vacation house, to retire in Mexico, or looking for a good investment opportunity, CT&TM has an incomparable choice and the expertise to guide you through the whole process.

Riviera Maya Properties - CT& TM Top 9 ... browse through some of our best offers !

Looking for the best deals available now in every price range ?  See our 'Affordable to Luxury Top 9 Properties'  and discover the house of your dreams, from $135 000 up to $3 000 000, we have them all !

PLAYA - $4,150,000	PALACIO - $3,000,000	HACIENDA - $1,500,000
CONDOMINIUM TYPE A - $261,500	PUERTO AVENTURAS - $275,000	PRIVADA RESIDENCIAL - $140,000
CONDO VILLAGE THAI - $500,000	CASA LA CAMPANA - $749,000	MARGARITAS - $220,000

REASONS TO INVEST IN MEXICO

Refer to:

http://www.sat.gob.mx/sitio_internet/informacion_fiscal/legislacion/52_3558.html

1. Territory
2. Government
3. Religion
4. Population
5. Labour Force
6. Minimun Wage

Economic IndicatorsDevelopment of Foreign Direct InvestmentInvestment EnvironmentFree Trade Agreements signed by MexicoBilateral Investment Treaties signed by Mexico (BITs)Agreements to Avoid Double Taxation signed by Mexico

INFORMATION ON RIVIERAMAYA REAL ESTATE MARKET

 Why should you consider buying or investing in Riviera Maya Real estate Mexico?

…You can be confident that your investment will grow up in value in the coming years.

AN HEAVENLY DESTINATION

Riviera Maya, situated on the East coast of the Yucatan peninsula, is one of the most visited Caribbean coastlines and vacation rental destinations, attracting an incredible number of tourists from all over the world.

Riviera Maya is a perfect investment area, where ancestral Mayan magic meets with modern know-how, luxury apartments and properties touch jungle wilderness, white sand extends meet turquoise blue waters hiding magnificent coral gardens.

Riviera Maya is also an ecoutouristic place. The property development there is respectful of its environment, since its success comes from the natural beauty of its shores and forests. The new urbanism has been meant to go well with the breathtaking and shimmering environment.

Playa Del Carmen, situated on the Riviera Maya, with its warm climate all year long, enchanting beaches, and the conveniences of Mexico's most developed sea destinations,represents one of the most attractive places to invest today.

THE MOST MODERN COMFORT, AT VERY LOW COSTS COMPARED TO THE REST OF THE CARIBBEAN

Mexico's peso has maintained a stable value over the past few years, offering a very attractive cost of living  for Canadians, Americans, or Europeans.

Some international direct flights to Cancun are low-priced and do not require early bookings.  Private flights arrive directly at Playa Del Carmen near Playacar.

Retirement in Mexico, on the splendid beaches of the Riviera Maya, is a dream that we can easily help you fulfill.

The Mexican Caribbean is only a few hour flight away from most of the major American and Canadian cities, making it easy for the family to come by. The latest know-how is very developped in Riviera Maya, and the region has all the most modern medical facilities you may need, at unbeatable prices.

Riviera Maya is not only attractive to adults and retirees. All generations enjoy it. The coastline is also known for its thriving nightlife, which attracts youth from all over the world. 

ONE OF THE WORLD'S MOST RAPID GROWTH IN THE RESORT CONDO MARKET

Playa Del Carmen and the Riviera Maya are currently experiencing an unprecedented boom in the Resort Condo Market. In the last 5 years the Mayan Riviera has growth significantly and thus getting the attention of many developers who are looking to profit by building outstanding properties with resort amenities, quality interiors, ocean views among others. The Riviera Maya real estate market had some of the world’s most rapid growth rates and is an outstanding example of regional trends.

There is a real opportunity in investment return when you buy properties in Mexico; either to rent it or to live in it, your investment will work for you.

The Riviera Maya area corresponds, within its limits, with the territory of the canton (municipio) of Solidaridad.  The population in 2000, was of 67.000 inhabitants, and passed to nearly 160.000 in 2006.  The annual growth rate is the highest of Mexico with nearly 20%.

The Guide “Invest in Mexico”, developed by the Ministry of the Economy within the framework of the Facilitation Project for the Free Trade Agreement between Mexico and the European Union (PROTLCUEM), offers practical information to facilitate business relations with Mexico.

This guide offers advice on the legislation that regulates foreign investment and the most important negotiations and paperwork needed to start up a new business in Mexico, as well as many other useful items of information.

Última actualización: Viernes 30 de abril de 2010 por la Unidad de Apoyos y Relaciones Institucionales

Mexico is an attractive and convenient destination for making investments. Its public finances are sound and sustainable, as is its banking and financial system. Mexico is a competitive destination for investment due to the certainty, security and backing of its institutions.

The business climate is one of the region’s most prosperous, considering the advantages afforded by its skilled population, its strategic location, the existence of specialized clusters in certain sectors, and the development of the services and infrastructure necessary to participate actively in the international market.

In Mexico unprecedented advances in infrastructure are being created. In the last few years, the modernization of communication routes has been carried out by channeling both public and private resources, with a view to consolidating a first-rate logistical platform.

Mexico is a viable option for investment due to its increasingly competitive regulatory and legal framework. Substantive constitutional reforms have been effected in energy, taxes and the pensions system. This favorable and dynamic setting makes it easier for investment to be much more productive.

STRICTLY SECURED REAL ESTATE PURCHASES, WITH ATTRACTIVE TAX EXEMPTIONS

The Mexican law guarantees the legal reliability and the full transparency of real estate acquisitions for foreigners and their heirs. 

In order to be exempted from capital tax gains, the taxpayer simply has to prove that he resided on the property for six months each year, during the two years period prior to the sell of the property.

Buying Mexican real estate is safe and easy with more and more financing sources available to U.S, and Canadian citizens, through both U.S and Mexican banks.

Let's not forget that Mexico is a major player in western hemisphere, since the passage of the North America Free Trade Agreement (NAFTA).  

For all these reasons, Riviera Maya is, in the current economic scene, the best place to invest in real estate. 

...You can be sure that your investment will grow up in value in the coming years. 
 

REAL ESTATE NEWS - "NEW RIVIERA MAYA AIRPORT TO BRING BOOM TO MEXICAN CARIBBEAN"

Posted on March 29, 2010 by Dan Prescher

In an event near one of Mexico’s major Mayan ruins in Tulum last week, Mexican President Felipe Calderon announced that bids would soon be open for construction of a new Riviera Maya airport project.

Calderon made his announcement at the southern end of Mexico’s busy Caribbean tourist zone, the Riviera Maya, which stretches from Cancun south to Tulum and includes one of the fastest growing tourism centers in Mexico, Playa del Carmen. The new airport has been under consideration for some time because the area’s booming tourist industry has moved south from the region’s existing airport in Cancun.

Ronan McMahon, Executive Director of Pathfinder Real Estate, said the new airport answers a long-standing need and will almost certainly create an economic boom in the region.

“Last year, the Riviera Maya greeted 2.9 million visitors,” said McMahon. “There are ambitious plans to increase to 18 million by 2025, so the new airport will be a huge draw to the area. Construction contracts will be awarded by the end of the year, and just in its initial phase the new airport is set to handle 3 million visitors per year.

“Anyone who owns real estate in the area right now, just saw their property values increase,” said McMahon. “And anyone in a position to provide the services that all these additional visitors and tourists will need – especially rental units could do very well indeed in the long term,” said McMahon.

FAQs

Selva & Co 

1. Can I own property in Mexico? Yes, Mexican foreigners may obtain direct ownership of property in the interior of Mexico. Mexican foreigners can also own property along the ocean front. By Mexican law, properties within the 50 km of any ocean front and 100 km of any country boarder are acquired via a bank trust or via establishment of a Mexican Corporation.

2. Can the Mexican government confiscate my land? Foreigners often worry about their land being expropriated by the Mexican government. Under the North American Free Trade Agreement, NAFTA, Mexico may not directly, or indirectly, expropriate property except for a public purpose. This is the same as "Eminent Domain" in the U.S. Where it is necessary to expropriate land, swift and fair market compensation must be paid, together with accrued interest.

3. Do I need to hire an attorney? Here in Mexico, real estate closings are handled by Notaries, which are government appointed officials and they have the authority to handle the complete closing transaction. Before closing, the Notary will revise all documents to make sure everything is in order. You may, however, contract an attorney to represent you as well, here at Selva & Co we highly recommend that you do so and we could refer you to our trusted attorneys.

4. How long can a foreigner reside in Mexico per year? When you arrive to Mexico, a tourist visa is issued. The maximum amount of period on these visas is 6 months. These can be updated at the local migration offices. You also have the option to apply for a FM3, which has 12 month periods of validity. FM3s can be obtained if you are a property owner, or if your employer is a Mexican Corporation and for several other special cases.

5. Can I as a Mexican Foreigner, purchase property within the restricted zone under a Mexican corporation entity? It depends, if you want to acquire for residence purposes you need to acquire with a bank trust. If you want to acquire for commercial purposes you can acquire via Mexican Corporation with certain procedures and requirements. If you want to acquire for other purposes other than residential, you can acquire via Mexican Corporation with certain requirements and procedures.

6. What is an FMT? It is the tourist visa that is obtained when first entering into Mexico. These can continually be renewed by simply leaving Mexico within the allotted six month period, and then reentering.

7. What is an FM3? It is a document for a person who wants to live at least part time in Mexico, but does not necessarily intend to make this their permanent home. To be granted and FM-3 status, you must prove you have sufficient resources to be financially independent, or meet certain requirements to be able to work or own a business in Mexico. FM-3 "Rentista" status is available to anyone with a monthly income (from investments, social security or other retirement) of less than $1,000 USD plus under $500 USD for each dependent. If one owns property in Mexico, the amount of income required is reduced by nearly one-half.

8. What is an FM2? Is a document for a person who intends to permanently reside in Mexico, with qualifications only slightly more stringent than FM-3 status. After five years of successfully meeting the requirements of FM-2 (including restricted time out of Mexico), one may apply for "Inmigrado" status, which allows you to enjoy most of the rights and privileges of Mexican citizen, the primary exception being the right to vote. Inmigrado status does not require you give up your native citizenship, but holders may freely work and remain in Mexico without annual renewals of immigration paper.

9. If I decide to sell my property, can anyone buy it? Yes, you can sell to either a Mexican national, or Non-Mexican Foreigner. A Non- Mexican would also be required to set up a bank trust.

10. What are my rights as a buyer? The Trust is a legal substitute for fee simple ownership, but in many cases, the Trustee is the legal holder of the property. As Beneficiary, you have the right to sell your property without restriction. You may also transfer your rights to a third party or pass it on to named heirs.

11. Can I own property near or in front of the ocean? Yes, laws passed in 1973 and 1993 have made it possible for foreigners, foreign firms, and Mexican firms with foreign participation to acquire interests in coastal real estate through a bank trust.

12. Do I need an FM-3 to buy property in Mexico? Anyone, even someone in Mexico on a tourist visa, may buy property. It is stated that: If you sign a contract, rent a house or condo, buy a house or condo, or lease property (i.e., campo’s), you are no longer a "tourist" and therefore, are invited to apply for an FM-3. But in order to acquire property, it is not necessary to possess an FM3.

13. If the buyer is a foreigner, is his interest limited in the balance of the 50-year period? No. Upon application, a foreigner automatically receives his own renewal 50-year permit. However, this is not mandatory.

14. How much will my closing costs be? Closing costs will usually run between 5-7% of the sales price of the property. They are determined before closing by the Notary. Notaries in Mexico are more than just clerks, but state government appointed lawyers who have the power and authorization to close real estate transactions in Mexico. The closing costs include their fees, transfer taxes and establishing the trust. Closing costs may increase if you include title insurance and financing fees. Your real estate agent will assist you with the closing process.

TAXES

Selva & Co 

Property taxes are very low in Mexico as a whole. The property tax, known as a predial is 1% of the assessed value. Taxes are paid annually, with the assessed value determined at the time of sale. If you purchase a property with an assessed value of $100,000US dollars your annual tax rate would be $100.00US dollars. The reason taxes are so low is due to the fact that they have never been a source of revenue for the Mexican government.

Real Estate Acquisition Tax (transfer tax): Individuals or companies purchasing real estate, consisting of land, or land and its improvements in Mexico, are subject to the payment of a real estate acquisition tax calculated at the rate of 2% of the value of the property (the rate may vary from state to state from 2% to 3.3%). All purchasers of real property must pay this tax whether the acquisition is carried out through a purchase and sale agreement, donation, trust, assignment, mergers of companies, split-off, or payment in kind.

Mexican real estate is subject to a 20% capital gains tax on the gross proceeds from the sales without any deduction. There is another option, net basis taxation up to 35% (depends on the state and the interpretation of the notary). Under this tax plan, gain is calculated by deducting from the gross proceeds (1) the original cost of acquisition, (2) the cost of improvements, (3) notarial expenses and other costs of sale, including appraisal costs, and (4) commissions. The original cost is separated between land cost and cost of buildings, with at least 20% allocated to land. The cost of buildings and any other improvements is then decreased at 3% per year between the date of acquisition and date of sale, but the cost is not decreased below 20% of the original amount. The cost of the land is increased based on changes in the National Consumer Price Index.

Your FM2 or FM3 can help you to avoid capital gains taxes when selling your property. If someone proves they were living on their property for two years in Mexico, they can avoid paying any type of capital gains.

Individuals in the restricted zone, who are residents of Mexico (have an FM3), and who rent their rights in trust property (fideicomisos) must make provisional payments on their Impuesto Sobre la Renta (Tax on Rents) for income generated from cash deposits, credits, exchanges coming from rents or sub-rentals. The calculation will be based on one of two methods; one option is to pay 1% (on average, based on state) of the gross amount received during a three-month period, or you can opt to pay around 35% (on average, based on state) of your net profit.

In order for any authorized expense to be deductible, the taxpayer must obtain an official invoice, which is known as a FACTURA. This receipt must be printed on the press of a government-authorized printer and will contain the RFC number (taxpayer ID number) of the individual or company issuing the receipt.

Authorized items for deductions are the following:

1. Property taxes, as well as any contributions or local taxes for improvements, planning or public works expenditures.

2. Maintenance costs that are not related to improvements or additions; water payment when not paid by the tenant who occupies the property.

3. Interest paid for loans obtained for the purchase, construction, or improvements of the property.

4. Employees directly employed at the rental property. Salaries, commissions and /or fees are deductible, as well as taxes and benefits paid on those salaries.

5. Insurance premiums on the properties.

6. Investment in construction, including additions and improvements (these expenses are amortized at the rate of 5% per year for construction and 10% for installation expenses or improvements.

Mexican residents must file a declaration with authorities by the 17th of each month. An annual declaration is due no later than April 1st the following year and the difference between provisional payments made and total tax due, based upon global Mexican income, is due with the annual return.

Mexico has signed a number of treaties to avoid double taxation with other countries and their benefit can be applicable depending on the type of transaction. Taxes that are paid on Mexican income are generally deductions on U.S. and Canadian income. It is wise, however, for the foreign taxpayer to check with his or her personal accountant to determine how to declare these foreign tax payments.

LEGAL STEPS TO PURCHASE REAL ESTATE IN MEXICO 

Selva & Co

1. Offer and acceptance and/or promissory agreement

   In accordance with Mexican Law, a letter of intent fulfills the requirements for it to be considered to be a valid contract, with the condition that there has been mutual consent on the part of both the seller to transfer a specific property and the buyer to acquire it.

2. Title Search and Conditions of the Property
   

   This will ensure that none of the information of the Public Registry of Property and Commerce regarding the property is overlooked.

3. Requirements for closing and formal execution of a standard real estate Transaction in Mexico
   

   Property Appraisal and Site Survey: In accordance with the Real Estate Law ("Ley de Catastro"), it is mandatory to carry out a site survey on the property and do an official appraisal. The appraisal must be done estimating the commercial value of the property, considering its surroundings, a market survey and zoning regulations.Certificate of No-Encumbrances: This certificate will enable the Notary to assess that the property does not have any lien or encumbrance, or any claim pending over it, and thus can be transferred with a clean title. It is obtained directly at the Offices of the Public Registry of Property and Commerce and basically it must contain at least the following information: I) the number of years of documented history made on the property; II) the surface area of the property in accordance with the records; III) the metes and bounds of the property; IV) the name of the owner; V)classification of the property (urban or rural); VI) a legal description of the property (such as if it is owned in a trust or by several owners); VII) the name and signature of the registar and VIII) the official seal of the Public Registry of Property and Commerce. Certificate of No-Tax Liability: This certificate will enable the Notary Public to assess that the property tax has been paid prior to the transfer of the property.

4. Notary Public and Public Registry of Property and Commerce

   A Mexican "notario" is an attorney who, after passing rigorous examinations, is commissioned by the government as a public notary. A notario holds high office for life, unless he or she is removed for cause. The notario fulfills a public function delegated by the government. Although licensed as an attorney, the notario is not in a position to provide either of the parties with legal advice. The notario's responsibilities include collecting and reviewing the sales contract, property tax and water payment receipts; ordering a bank appraisal: freezing the property's file at the local public registry (no documents may be recorded in a property's file during three consecutive thirty-day periods); reviewing the property's file to verify the legal ownership and search for liens, encumbrances or anything that could affect the title (as the majority of public registries are not automated, this procedure can take from 60 to 90 days); requesting the public registry to issue a "Certificado de Libertad de Graveneres" (Certificate of Freedom from Liens and Encumbrances); and performing the closing at this office where the notario handles the transfer of the deed, tax withholding on the underlying real estate transaction, and the recording of the documents at the public registry.

   The function of the Notary Public is to act as an extension of a Judge or the Government. His duty is to ensure that a real estate transaction is formally executed in compliance with all legal requirements. Upon the execution of the transaction, the deed of title must be recorded at the Public Registry of Property and Commerce of the domicile in which the real estate, subject matter of the transaction, is located.

THE MOST COMMON CHOICESS FOR PURSHASING REAL ESTATE IN MEXICO

Selva & Co

1.  A purchase sale agreement occurs when one of the contracting parties obligates itself to transfer the ownership of property and the other agrees to pay a certain price in consideration of the property rights. The contract is perfected and binding between the parties as soon as the property and its price are agreed upon,even when the property has not yet materially been delivered and the price paid. All such contracts must meet specific requirements in accordance with Mexican law in order to exist and be valid. 

   There are two types of elements to the contract:

   • Essential Elements: The essential elements of any purchase sale agreement: consent which is granted by the seller's agreement to transfer the real estate to the buyer, and in turn, the buyer's consent to pay a certain price; and object which is the purpose of the title transfer of the real estate on the one hand, and the payment of a certain price as consideration of the transfer.

   • Validity Elements: The validity elements are: legal capacity that refers to the legal rights of the parties to enter into the contract; and legal form, which are the formalities with which a transfer complies in order to be perfected. For example, real estate transactions must be in writing, and in order for such to be binding before third parties, they must be recorded at the Public Registry of Property and Commerce. Basically, the fundamental obligations of the seller in a purchase sale agreement, are: a) to deliver the property being sold to the buyer; b) to guarantee the quality of the property; and c) to guarantee the title (with cure in case of eviction).

   On the other hand, the buyer's principal obligation is to comply with the payment of the price in the terms place, and form agreed in the agreement.

2. Installment Sales Agreements withholding transfer of title

   In this kind of agreement, the seller reserves title of the property until full payment of the sale price is made, but the  buyer may use and enjoy the real estate until full payment is made. Usually, this kind of agreement includes installment payments. There are some advantages in using this kind of agreement: First, the agreement can be recorded at the Public Registry of Property and Commerce as being enforceable and binding before third parties. Second, the seller is not able to sell the property while the purchaser is in compliance with the sales agreement, usually meaning that he is current in his payment obligations to the seller. Finally, the obligations of the parties are subject to what in Mexican Law is commonly known as "Condicion Suspensiva" (suspensive condition), which conditions the agreement to full payment of the price to the seller.

3. Irrevocable Real Estate Trust Agreement

   This is better known as a "fideicomiso" and is the most common instrument for the acquisition of real estate property within the restricted zone, usually for residential purposes. The seller, "trustor", will transfer property to a Mexican bank institution, the "trustee", by means of an irrevocable trust agreement. The trustee will hold the property on behalf of a designated beneficiary (usually the buyer). The bank is obligated to administer the real estate only for the benefit of the beneficiary, who holds the right of use and enjoyment of the real estate, as an owner. The bank holds title to the property but the beneficiary is entitled to use it and even sell the property held in trust to any eligible buyer, providing that he instructs the bank to do so.

CONTRACT LEGALITIES

Selva & Co 

A legal real estate contract has 5 necessary parts:

1. Competent parties - This is usually defined as "being of legal age and sound mind." In Mexico another factor comes into play--language. A person who doesn't understand Spanish, the legal language of the country, no matter how mature or intelligent, is not competent in any practical sense. Therefore, the contract must be translated into English for English-speaken people.

2. Lawful Objective - This means that contracts can be voided if it is discovered that the intent has been to set up a drug business, a house of prostitution, or some other illegal operation. If one doesn't own a property, it can't be lawful to try to sell it.

3. Offer and Acceptance - This means that a contract must be signed by both parties. It must also have a date when it takes effect and must specify the place where it is signed.

4. Legal Description - Legal descriptions can take several different forms--metes and bounds, lot and block, government survey--but the key is that the property must be readily identifiable.

5. Consideration - Consideration accompanies a contract as an evidence of good faith. It usually means money, although it can take the form of a promissory note, another piece of property, an item of value like a car or boat, or even such an intangible as "love and affection."

FINANCING 

Selva & Co

Purchasing a property in Mexico is an exciting decision, and with the growing and increasingly successful cross-border mortgage industry that has been developing in Mexico over the past few years, there are now more options than ever to finance your home!

Mexico has historically been a cash-based economy, but with the influx of investment by foreigners, financing has become a viable alternative. Many US lenders and banks have turned to the Mexican market, and their previous US experience makes the process more familiar than if one were to finance directly through a Mexican bank.

For some people, the introduction of financing into the Mexican real estate market represents the opportunity to pursue a dream that may not have otherwise been tangible. For others, obtaining cash to purchase a property may never have been an issue, and so the question becomes, “Why finance?”

There are several important reasons why cross-border financing in Mexico makes sense:

• Keep national and foreign investments separate. Some people may decide to pull equity out of their properties in the US or Canada to finance their Mexican purchase. This is an option, but it also ties all of your investments to one source. It is smarter to keep your national and foreign investments separate because if something were to go awry in either location, the investments in the other location would be safeguarded. This also prevents tying up college or retirement funds and actually increases sources of equity.

• Future investment opportunities. Anyone who has visited Mexico has witnessed the incredible opportunities for real estate investment. By using the concept of leverage to your advantage, you better utilize your cash, which allows you to pursue additional investment opportunities. You can purchase a $500,000 property by paying only $150,000 cash and financing the rest – this leaves you with $300,000 to invest in additional properties that you can either rent out or flip for a profit. With financing, your money goes much further and can even generate additional income!

• Extra level of protection that title is free and clear of encumbrances. By having a lender involved, the transaction won’t close until the title is absolutely perfect. In most cases, the lender has the greatest risk in the property (up to 75% loan, vs. your 25% downpayment). They are totally comfortable with the Notario bringing the title up to date and free of liens. Title insurance is not required by most lenders but is optional for the buyer to purchase if they so choose.

Financing in Mexico is currently available for Americans and Canadians, with US Dollar loan programs and UK citizens and Spaniards with Euro-based loan programs. Purchase, non-cash out re-finance (better rate and term), cash-out refinance, and residential construction loans are available, and there are many methods used for qualifying. Commercial loans are also available for construction and existing properties.

It is smart to finance through a broker, rather than directly through a lender, because you have access to more options through many lenders, thus enabling you to truly find the program that is best for you. Also, a broker retains copies of all of your documentation, which makes it much easier to alter the direction of the loan if necessary – a lender does not return your documentation to you, thus requiring you to recollect everything should you choose to change lending institutions service providers.

 Mortgages In Mexico, LLC. Mortgages In Mexico was the first loan broker to open up in Puerto Vallarta (September 2004), they have loan officers all over Mexico, they are now the longest tenured loan broker in Mexico. Their experience and professionalism, as well as their on-the-ground presence, make them the best choice for obtaining a mortgage. They represent all of the reputable sources of money available in Mexico and will be happy to discuss the available loan options. It is always a good idea (but not required) to be pre-qualified so you have a better idea of what to look for when you begin shopping for properties in Mexico. You can begin this process by filling in the blanks below and have a Mortgages In Mexico representative contact you.

BANK TRUST 

Selva & Co

The "fideicomiso" is set up through a Mexican bank for a period of up to 50 years and can be renewed for 50 years. To acquire the land the purchaser must obtain a permit from the Ministry of Foreign Affairs. The buyer can lease, sell or transfer the property to another family member, and if he dies, his property can be passed to an heir.

In the trust there are three elements: The trust Settlor (Fideicomitente) which may be a physical or legal Mexican person, who is the owner of the property which is to be placed in trust; the Trustee (Fiduciario) which, by law may be only a credit institution and which holds the raw real estate; and the Beneficiaries (Fideicomisarios) the legal or physical foreign persons who are the beneficiaries of the trust who obtain the use and benefit of the property.

The bank (known as the trustee) holds the trust deed (known as the escritura) for the person or persons purchasing the property (known as the beneficiaries). This property is not part of the bank's assets and cannot be subject to any lien or attachment for any bank obligations. The beneficiary has all ownership rights to the property and may sell, lease, mortgage or pass on to their heirs as desired under law. A bank trust is not a lease. The Mexican government established the trust agreement as a way of protecting foreigners interested in owning property in Mexico. The reasoning was that by making ownership pass through the trust process, there would be an automatic review of the transaction to ensure it was legal and unencumbered. The bank is required to check ownership, insurance and indebtedness of the property, providing further protection to the foreign owner.

Trusts are renewable at any time by filling out a simple application with the bank. It was never the intent that these properties pass back to the government at the end of the trust period. This is a common misconception and fear of most buyers. It may help in understanding the Bank Trust to compare it with the Deed of Trust, a type of financing instrument used in the U.S. People who buy homes, paying the full amount upfront, receive their titles right away. However, this rarely happens. Under a deed of trust the buyer of a house has only "equitable title," or an equity interest, with the right to use but only a restricted right to sell, until the loan is paid off, after which the owner receives the actual fee simple title. Until then it is held by a trustee, usually a bank or title company. In Mexico the Bank Trust is also held by a trustee, but the buyer never receives the actual title. Realistically many homeowners in the U.S. never receive title to their properties either, because they sell or refinance their homes before the 30-year term of their loan is complete.

TITLE INSURANCE

Selva & Co 

Purchasers of Mexican real property can now receive Owner's Policies of Title Insurance that can be issued on both sides of the border from various companies to both U.S. and Mexican buyers. Most title insurance policies today are U.S. contracts of indemnity guaranteeing ownership rights as vested in a fideicomiso (bank trust) for residential property acquired by foreign buyers in the prohibited zone, or for properties held in a Mexican corporation for non-residential purposes (i.e. industrial and commercial). Mexico is not unlike the U.S. in that there is a definitive legal framework for ownership of land by foreigners known as the New Foreign Investment Law (Dec. 28, 1993) and as mandated under Article 27 of the Mexican Constitution. In addition, there is formality and compliance in the development of real property. Regulatory statutes and procedures are mandated on a state-by-state basis and require a series of official approvals, permits, and authorizations, coupled with public disclosure and written notification by the governing public agency.

American title Insurance is available for Mexican real estate whether acquired directly or through a trust. The cost of the insurance depends on whether the property you are purchasing is covered by a master title commitment. The best way to protect yourself is to get title insurance. Most Mexican companies don't sell it, but Houston based Stewart title Guaranty, Lawyer's Title, and Fidelity National Financial does. The insurance runs about $4 to $7 for every $1,000 of property value, versus $3 to $4 in most of the U.S. In addition to title insurance, property insurance is also available in Mexico and the rates are relatively low.