For Americans buying their dream property in Mexico, it’s important to understand the differences between Mexico’s real estate system and that of the United States. It’s never safe to assume that any law or process is the same between the two systems, and oftentimes they are completely different. There are a few key differences to be aware of between purchasing properties in the U.S. verses Mexico to ensure a seamless transaction.
Real Estate Agents
There is no real estate license required to buy or sell property in Mexico. Unlike in the U.S. where a person must be a trained and licensed agent to sell property, a person with no knowledge of real estate whatsoever can sell a piece of property in Mexico. Foreigners with little knowledge of the local laws and area can be an easy target for fraud.
Even sellers with the best intentions of conducting an honest transaction may not be fully aware of all of the legalities when it comes to zoning, title transfer, foreign ownership, etc. Consider finding a Mexican real estate agency with a solid reputation for foreign client satisfaction.
Property Ownership
As part of a law passed in 1917, citizens of countries other than Mexico cannot directly own property in the “restricted zone.” The restricted zone encompasses a 50km perimeter along the coastline and 100km perimeter along the country’s natural borders.
However, the Mexican government welcomes and encourages foreign investment and has developed ways for non-residents to safely own and enjoy property along Mexico’s picturesque coastline. Foreign investors must first set up a corporation in Mexico that technically owns the property. Under the law, foreigners have full ownership of their Mexican corporation, thus allowing non-nationals complete ownership of property within the restricted zone.
Financing
Mexican banks don’t offer the same types of attractive home loan packages that make it simple to finance a home in the United States. In Mexico, the majority of people tend to build their own homes starting with a small foundation and expanding slowly as income allows. For many years, Americans who wished to buy property had no choice but to pay in cash for the full amount.
Thanks to real estate reform, some American banks now offer loans for property in Mexico. Construction loans are available through U.S. banks as well. Some banks only write loans for second or third homes in Mexico while others offer loans for primary residences and investment properties.
While there are numerous differences between purchasing a home in the U.S. and purchasing a home in Mexico, the process today is easier than ever before. It’s important to find a real estate agency with a solid track record for success in helping Americans to obtain property in Mexico.
There are always numerous factors to consider and steps to take when buying property in another country. By working with trusted advisors, talking with others who have experienced the process, and doing your own independent research online, buying property can be a seamless and fulfilling experience.
Author is a small business internet marketing consultant and the cofounder of nGenuity Solutions.
To find more information about real estate in Costa Maya, or to contact a Costa Maya real estate agent, please visit http://www.transcaribbeantrust.com
