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THE EASE OF BUILDING OR BUYING YOUR DREAM HOME IN MEXICO

Building or purchasing your dream home in Mexico is simple. There are many qualified builders, architects, engineers, etc. available. Mexico has agents and real estate companies throughout the country. A license for real estate agents is not yet a requirement in Mexico, but a real estate agent or company can help you take the proper steps as well as offer expertise on the current market. Make sure your real estate agent is registered and is working with a real estate company.

THE NOTARY OR "NOTARIO"

The notary assumes the greatest responsibility in seeing that the government requirements are met. It is important you know that in Mexico, a Notary has more clout than a real estate lawyer. A Mexican attorney who has been practicing for at least ten years and meets the rigid qualifications required can finally be appointed as a notary. All notaries are lawyers, but not all lawyers are notaries.

Once you have found and verified the value of the property you want to buy, make an offer with a deposit, generally 5 to 10 percent of the total purchase price in the form of a cashiers check made out to the owner. The check stays in the hands of the notary and a copy of the check along with the agreement/offer are sent to the owners. If the owner agrees, the notary can then start the title check to make sure there are no liens on the property. This process usually takes about a week. Do not send cash to the owner or give money to your real estate agent. Let the notary work for you as the neutral party, protecting both you and the owner.

If you are a foreigner, you will be required to give a copy of your passport and license. The notary will draw up all the necessary papers and solicit a bank trust for you as well as permission from the Exterior Relations Department. Normally the buyer pays the notary fees for the new title process, and the seller pays any liens, back taxes and the sales commission to the real estate agent or company.

BANK TRUST OR "FIDEICOMISOS" AND THE RESTRICTED ZONE

The law declares that the Mexican nation has original ownership to all land and water in Mexico, as well as minerals, salts, ore deposits, natural gas and oil; but that such ownership may be assigned to individuals. The "restricted zone" encompasses all land located within 50 km (31 miles) of any Mexican coastline. The Mexican Government created the "fideicomiso" to reconcile the problems involved in developing the restricted zone and to attract foreign capital. This enable foreigners, as beneficiaries of the trusts, to enjoy unrestricted use of land located in the restricted zone without violating the law. Property held within a "fideicomiso" allows owners to designate beneficiaries so that if there is a death, the property passes smoothly to the beneficiaries without probate of a trust. To make a change in the Bank Trust, simply identify the change in writing and instruct the bank to make the necessary change. There is an annual charge for maintaining the trust, which runs around $400 USD per year, depending on the bank you are using and there is a small charge for any change you might make in the Bank Trust.

There is a common misconception among foreigners investing in Mexico that once the trust expires, the beneficiary loses all rights and benefits of the sale of the property held in trust. This is not the case! On the contrary, the beneficiary has a contractual right under the trust agreement with the Mexican bank to all benefits that may result from the use or sale of that property. Under Mexican Law, the bank as trustee, has a fiduciary obligation to respect the right of the beneficiary.

A real estate trust is not a lease. The beneficiary can instruct the bank to sell or lease the proprty at any time. The beneficiary can develop and use the property to his liking and benefit, within the provisions of the law. Generally, the law allows most activities engaged in by foreigners.

THE DIFFERENCE BETWEEN PRIVATE TITLE LAND AND EJIDO (NATIVE) LAND IS:

The Private Title Land/Bank Trust is a simple bank trust between you and the bank.

The Ejido (Native) Land/Bank Trust is not only a trust between you and the bank, but requires a Native (Ejido Mexican) partner known as a "Pres de Nombre". MAKE SURE YOU KNOW WHAT YOU ARE BUYING!!!!

ARRIVING BY LAND IN MEXICO

All tourists entering Mexico must obtain a Mexican tourist visa (FM-T). Foreigners entering by car must pay a tourism tax of $21 USD on arrival and will then be given their tourist card, which can be valid for stays up to 180 days.

Canadian and U.S. driver's licences are valid in Mexico. There is a straightforward procedure to follow at the border crossings for temporary importation (up to 180 days) of foreign registered vehicles. You can obtain this permit at the customs office at the border by providing both the originals and copies of the following documents:

When you leave the country, be sure to return your temporary importation permit at the border exit in order to obtain a certificate stating that the vehicle was removed from Mexico.

Automobile Insurance issued outside the country is not valid in Mexico. You must obtain insurance from a Mexican company, some of which are conveniently available at the border. The cost of 6 months car insurance is rated similar to North American rates and you can receive a rebate on your Canada/U.S. insurance by submitting your Mexican exit receipt. Check with your insurance agent or CAA or AAA at home for further information.

The Quality of Roads in Mexico has been up-graded significantly in the last few years. Mexico has a modern system of toll freeways, extending from major border crossings throughout the country. There are also "Free Highways" that parallel the toll roads, but can be slower paced because they are used more frequently by the nationals. On federal toll highways, there is a vehicle assistance service called "Green Angels", operated by the Ministry of Tourism. Green trucks equipped for basic repairs and first aid travel each major toll route at least twice daily.

If you are a retiree and are planning on spending more than 180 days per year in Mexico, you will be required to obtain a different Mexican visa called an FM3. This can be obtained at your nearest Mexican Consulate in Canada or the U.S. or at any Mexican immigration office within 30 days of your 180 day permit expiring.

Good quality health care is available from private hospitals and clinics in most parts of Mexico. You will find that visits to most doctors or dentists in Mexico are a very positive and inexpensive experience. Check with your provincial or state program to see how much of foreign health care costs are covered. Supplementary health insurance policies often cover the full cost of foreign health care, as well as emergency evacuation back to your home country. Good private insurance is also available at competitive rates in Mexico.

Banking and money exchange has become universal throughout Mexico. ATM'S can access international accounts and give the best rate of exchange of the day. There are now Canadian and American banks that are affiliated with Mexican National Banks. This has made cross-border banking much more convenient.