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Destinations, FAQ, Real Estate

Key Parties in Buying Mexican Real Estate at the Beach

When non-Mexican nationals buy Mexican real estate at the beach there are four key parties involved in the process in addition to the buyer. Buying Mexican real estate at the beach means that you will be purchasing within the restricted zone that is applicable when the property is within 50 km of the beaches and borders of the country. While it is still totally possible for foreigners to purchase Mexican real estate at the beach within the restricted zone, it requires an extra step, as you will see explained below.

Key parties in Buying Mexican Real Estate at the Beach

● A realtor (optional)
● Buyer’s Attorney (optional)
● Fideicomiso Bank trust (obligatory for foreigners)
● A Notary (obligatory)

A realtor for buying Mexican real estate at the beach

The real estate company offers much needed support and guidance when it comes to finding and buying your home, but also when it comes to the processes, laws, and regulations of real estate in Mexico. Each and every country has it’s own process when it comes to buying property so it never hurts to have the help of experienced and knowledgeable individuals. Nevertheless, using a realtor is not essential and you may well find a property for sale by other means.

Buyer’s attorney

Like using a realtor for buying Mexican real estate at the beach, hiring a buyer’s attorney is not essential, though very reassuring and useful. An attorney will represent and protect you in all legal dealings. In this case they can draw up contracts and reviews the terms and conditions of the sale as well as providing advice. However, only a licensed Mexican attorney should provide such advice as foreign attorneys are not licensed to practice law in Mexico and will not be qualified to provide you with advice on these matters. An attorney may also help you save money as they will be aware of the standard costs and fees and will be able to work to get you the best prices at each stage.

Notary

A Notario Publico (Notary) is a licensed Mexican attorney who has been certified by the state and federal governments to act as an unbiased and official representative for the Mexican government. There is no way that you can purchase Mexican real estate at the beach (or anywhere else in Mexico) without the services of a notary. And that goes for both foreigners and Mexican nationals. Notaries in Mexico have similar duties to those performed by Canadian notaries and have great responsibility (more than a notary would in the US, for example). A Notario Publico has to pass stringent exams and is considered a governmental official; their duties include providing strict security when it comes to original records and documents. They record all documents with the Public Registry of Property, and could be held liable in a court of law if something goes seriously wrong! The role of the notary is so important that any real estate transaction not ratified before one (and duly recorded) is considered invalid and unenforceable! In real estate transactions the notary is equally responsible to the buyer and seller, but ultimately works for and answers to the Mexican Government.

Fideicomiso bank trust

Finally, if you want to buy Mexican real estate at the beach you are going to be buying a property within the restricted zone. This means that you will require a Trustee Bank to act as a fideicomiso (trustee) for you. You can choose any established and qualified bank so long as they are registered in Mexico and have a Trust Department; the bank will ensure that the closing is legal and appropriate and will issue a trust for the real estate for your use alone. The bank cannot transfer ownership, change beneficiary rights, or do anything with the property without your written instruction, too, so you can be sure it is totally legitimate and safe. Better yet, Mexican banks have the protection of the government when it comes to warding off bankruptcy; the trust is guaranteed indirectly by the government.

If you buy property in Mexico you’re likely to deal with these four key parties at some point or another.

by VLEAdminRE,
Destinations, FAQ, Real Estate, Residences

Is Living in Mexico Safe for Foreigners?

Although there are isolated incidents of violence that occur, they are almost exclusively related to drug cartels who retaliate against their rivals, most often happening around border towns like Ciudad Juarez where cartels battle for power. The media has sadly and unfairly given Mexico a bad reputation, but huge numbers of expats and retirees who live there know there is another side to this wonderful country. If you are thinking about living in Mexico, here are some tips on how to stay safe:

Make Your Home in a Well-traveled Region

Mexico is home to several coastal areas and cities found all over the country that have drawn large expat communities. Places like Cabo and Puerto Vallarta are particularly appealing to people because they are famously safe and welcoming.

Use Common Sense

Although the unfortunate reality is that drug-related violence can be a problem in certain parts of Mexico, if you are not friendly with anyone in a cartel or buy illegal drugs, it is highly unlikely that you would ever become involved in a dangerous situation. Rather than choosing random victims, cartel members attack their rivals or their families for vengeance, not for the thrill of committing a crime. Keep in mind that no matter where you are in the world, you can never totally safeguard yourself against random crime. In fact, there are many cities worldwide with much higher crime rates than Mexico, including some in the United States. As long as you don’t hang around in certain areas known for danger in big cities or border towns, you should be fine.

Driving Through the Country

Be sure to do some research ahead of time if you have decided to drive across the border from the United States. Only cross the border during the day and pick a border area known for its safety. After you have crossed into Mexico, driving in daylight hours and stopping before dark is highly recommended. One more safety tactic is to choose toll roads which should filter out most, if not all, undesirable roadmates.

Ensure Your Safety

If you want to take it one step further, you can even look for a home within a gated community or hire your own personal 24 hour security. You will enjoy peace of mind whether you are home or away knowing that your home is being looked after.

Head south of the border and move to Mexico, where you can live safely and have a great time doing it!

Recommended article: Why Mexico Tops the List for Happiness

by VLEAdminRE,
Destinations, Real Estate, Residences

Top Tips for Finding the Best Real Estate in Puerto Vallarta and Riviera Nayarit

With some simple steps, finding the best real estate in Puerto Vallarta and Riviera Nayarit is easy. Here are some strategies you might want to employ to help you in your quest for a vacation home that is tailored to your needs.

Choose the right time to buy

The end of high season is a great time for finding the best real estate in Puerto Vallarta and Riviera Nayarit as this is the time when most of the expats and snowbirds have gone home for the summer. You will find that real estate agents have more time for you and are more likely to focus on finding you exactly what you want. Furthermore, properties are more likely to be vacant during this time, so you will find scheduling multiple visits to see real estate in one day much easier. You will also get to see the property in the rainy season, which will highlight any leaks or mold problems, as well as issues you might find with regards to airflow.

Get a good real estate agent

It is the job of a good real estate agent to manage expectations and make sure people know exactly what to expect when looking for investment properties in paradise. You also need an agent who can be honest with you about costs and your chances of finding what you want within your budget. Alongside a good real estate agent, you will also want to have a reliable real estate attorney and notary, both of whom a reputable real estate agent can recommend.

Buy Property You Can Afford

Make sure you have the capital to invest in real estate in Puerto Vallarta and Riviera Nayarit. Most properties in Mexico are paid in full rather than using a mortgage, although Mexico’s mortgage lending business is growing steadily. In addition, mortgage interest rates in Mexico are very high. Some high-end properties, like Villa La Estancia Real Estate, offer developer financing, which is a great option. Nevertheless, the best rule of thumb is to buy real estate in Puerto Vallarta and Riviera Nayarit that you can afford.

Consider YOUR expectations

How many times have you been told: “Don’t buy near the beach because properties are more expensive” or “Find real estate out of town, so it’s cheaper!” While you will find real estate in Puerto Vallarta and Riviera Nayarit to be much cheaper in less desirable locations, you might want to reconsider why you want to move to Banderas Bay. If your goal is to live cheaply, then by all means, choose a cheaper neighborhood; however, if your goal is to experience the wonders of this breathtaking location, then choose real estate that matches your expectations. You might also discover that properties by the sea are not out of your reach.

Be realistic

Take into consideration how often you will realistically be able to use your property; how many times a year will you visit. If you are planning to live in your home full time or for long periods, you will need a different kind of property than if you were buying real estate in Puerto Vallarta and Riviera Nayarit as an investment to rent.

For help and guidance navigating the world of real estate in Puerto Vallarta and Riviera Nayarit, call us today on 1 866 843 7005 and we will help you discover the most beautiful beachfront properties on Banderas Bay.

 

Recommended articles:

Mexican Benefits for Foreigners Over 60

Checklist for Relocating to Mexico

by VLEAdminRE,
Destinations, Real Estate, Residences

Are Foreigners Allowed to Purchase Real Estate in Mexico?

If you have been wondering whether or not you, as a foreigner, can buy property in Mexico then the quick and easy answer is yes. Foreigners can buy real estate in Mexico even if the land is in an area near the coast or foreign borders (areas considered federal zones).You may have heard that this is not the case, but that is merely a common misconception caused by the fact that foreigners who wish to purchase land or property within 31 miles of the coast and/or 62 miles of Mexico’s international borders must use a fideicomiso land trust in order to make their purchase legal. You will be pleased to read that the process of getting a fideicomiso land trust is quite straight forward and easy, and is a common service offered by many banks in Mexico.

Fideicomisos and Bank Trust Institutions

If non-Mexican citizens buy land or real estate in Mexico within the restricted federal zones, such as the popular beach destinations of Puerto Vallarta, Riviera Nayarit or Cabo San Lucas, a trust deed must be established with a Mexican national or institution (such as a bank). This institution then acts as a trustee on behalf of the foreigner wishing to purchase real estate in Mexico. While the bank acts as an intermediary, the benefactor (the foreign buyer) holds all the rights associated with ownership. In other words, the person who does the investing controls all the rights to the trust while the trustee oversees and manages the trust, and you enjoy the rights to occupy, rent, bequeath, and/or sell your real estate in Mexico.

Renewable Bank Trusts

Initially the term of a Fideicomiso bank trust when buying real estate in Mexico as a foreigner is fifty years, renewable for a further fifty year term in perpetuity. If you choose to sell your property to a Mexican national the trust can be terminated, but if you sell to another foreigner it can simply be transferred. Of course the foreigner purchasing your property can set up their own fideicomiso if they wish to.

Appointing Beneficiaries for real estate in Mexico

Upon the finalization of the trust you will have to appoint a beneficiary/beneficiaries to receive all the rights of the trust should you pass away before the end of the 50 year lifetime of the trust. This takes away the stress of your heirs needing to follow any probate proceedings with the Mexican courts should you pass away unexpectedly. This will save them time and money, but more importantly, it will be one less thing to worry about if the worst came to pass.

For more information about purchasing real estate in Mexico, contact us toll free:

Cabo San Lucas: 1 877 499 1901
Riviera Nayarit: 1 866 843 7005

by VLEAdminRE,