EspañolLogin

Frequently Asked Questions

Those interested in purchasing a property constantly have the same doubts about terms and general aspects of the procedure to be performed. We provide accurate answers to some frequently asked questions to which we have faced. If you have any further questions get close to one of our agents through our phone numbers
  • What documents do I need to buy land or house?

  • Some of the documents are required photo ID, birth certificate and marriage, if applicable, proof of address and provide general data.

  • If you want to buy a property, what expenses do I relate?

  • It is necessary that includes the cost for the realization of a tax valuation and / or bank, if applicable, the certificate of no debts from property tax, tax on transfer of ownership, rights of public registration of property, fee for issuing the certificate of encumbrance after recording the deed.

  • I can sell my home? / Terrain if you have a mortgage?

  • Yes, when negotiating can agree that the value of the transaction is intended to pay an amount of the mortgage to the creditor and the cancellation of the lien granted.

  • I am married for community property, is necessary to allow my wife (or) to sell the house is in my name?

  • Yes, you need the consent of the spouse and this is manifested by the firm in writing. That is, for legal certainty both sign the deed of sale.

  • What should I take into account to see if the house or land I am buying good will goodwill?

  • It is important to see the condition of the property upon purchase and the possibility of future changes and renovations. Some of the important points to consider are the infrastructure and state it is, if you have room to continue building and the environment surrounding the property, ie its location as the colony or fractionation.

  • What costs me to pay if I sell my house?

  • Bear in mind be current with payments for electricity, water and property taxes, otherwise you should consider these payments to be current.

  • Approximately how much money I pay for the deed?

  •  

    This payment is variable with respect to taxes and duties shall be as according to the law be paid. Please note that you must pay the notary fees, they vary according to the notary who recurras.
     
  • Can a foreign buying real estate in Mexico?

  • Yes, in fact anyone, Mexican or foreign, can buy legally in Mexico. Although many people get wrong information or think you can not call for restricted areas, need advice correctly.

  • What is the restricted zone in Mexico?

  • Huatulco is located in a restricted area. This area is the coastal strip of the country up to 50 km (30.5 miles) inland, or 100 km (61 miles) on the borders of the country.

  • So if Huatulco is located in a restricted area, now I buy a property?

  • Both in Huatulco as in other coastal areas of Mexico, if foreigners can buy real estate but the Foreign Investment Law of Mexico are required to do so by a Trust.

  • What is a Trust?

  • The Trust is essentially a contractual arrangement, which, in many respects, is very similar to the Trusts in the United States. It is a transaction, contract or agreement between a Mexican and a foreign bank or a company that wants to invest in Mexico. In the trust a person or persons (known as the trustor or settlor) conveys property, amounts of money or property rights of another person (called a trustee), so that it manages or invests assets for personal gain or for the benefit of a third party, called a trustee.

  • So what are the parties that are involved in a Trust?

  • (1) The seller of the property, known as the settlor who transfers title of the property irrevocably to the bank. (2) The bank, which acts as trustee and has the title being obliged to administer the property only for the benefit of the buyer or recipient. (3) The purchaser or beneficiary (the trustee) who is entitled to use, enjoy, lease or sell the property acquired by the trust without limitation.

  • What are the requirements to process a Trust?

  • Approval is required from the Ministry of Foreign Affairs of Mexico, a bank trustee to carry out the transaction and a deed held before a Mexican Notary Public, who is obliged to ensure the authenticity and legality of the transaction. Ideal Properties gives advice and information useful in the process of training and monitoring of a trust. If you have any questions about the process send your questions via the contact form.

  • How is it celebrated a Trust?

  • Ideal Properties provides advice and information useful in the process of training and monitoring of a trust. First you, as an individual or foreign company, selects a Mexican bank acting as trustee. And should provide basic information for the administrator. After the Bank of Mexico requested the Ministry of Foreign Affairs of Mexico a permit authorizing the Trust. Once the permission, the bank and the other parties meet before a Notary Public (which functions as a closing attorney in Mexico) to produce the deed to the property. Finally the administrator then register the trust in the National Registry of Foreign Investments.

  • Do you have a trust termination date?

  • If, after a 50-year period expires Trust but can be automatically renewed for successive periods of 50 years indefinitely. This information is subject to change in accordance with Mexican law.

  • I can refer to a bank of my country to a Trust in Mexico?

  • No. Only Mexican banks may serve as trustees. Ideal Properties we offer counseling so you can head to one of the banks with branch established in Huatulco for your convenience.

  • What taxes should I consider if I want to buy a property in Huatulco?

  • Property taxes are 0.05% -1% of the appraised value of residential property, payable during the month of February each year. In the case of a property that generates rental income, the tax is generally 34% of reported net income. This information is general and subject to change according to circumstances. The team at Ideal Properties agents will advise you on any questions or concerns regarding this issue.

  • I've heard that I have a Notary Public, what is its role in Mexico?

  • The Notary Public is appointed directly by the Governor of the State of Oaxaca and has the power to certify and attest that all documents and permits are in order according to law in Mexico the law requires that all real estate transactions must be perfected in writing before a notary public and therefore always referred to one.

  • How easily find a property in Huatulco?

  • As with any purchase, it is necessary to resort to professional people, and established experts who know the areas of Huatulco to receive complete and accurate information. Consider feel comfortable (a) to his people and be assured that their interests and seeing what is not rushing in their buying choices. Ideal Properties know that the buying process has to be comfortable and meets their needs. For this we have bilingual sales person, a legal representant, working relationships with solicitors, banks and companies, property title insurers. Our aim is to facilitate their search and purchase process in Huatulco.

  • How to buy property in Mexico if I am Non-Mexican?

  • Buying property in Mexico is easier than you think. As with all real estate purchases, you will need to choose your location, do your research and hire the right professionals.  Tens of thousands of foreigners have purchased real estate in Mexico and with the right approach; you can be one of them.  It is important to understand Mexican property law which will safeguard your investment and make the purchase process easy and smooth.
     

    The Buying Process – What to expect and who is involved

    In 1972, the Mexican government initiated the legal process of entitlement which protects foreign investors.  This entitlement is called a Fideicomiso, which allows the bank to hold title to the real estate anywhere in Mexico, including the restricted zone, as the ‘trustee’ for you, the ‘beneficiary’.

    There are typically four parties involved in a real estate transaction in the restricted zone.  All serve a purpose in assisting you with your real estate transaction.  There is the realtor or broker, the buyer’s Lawyer, the bank acting as the trustee and the notary. In Mexico, a notary is a lawyer.  Their positions are comparable to that of a Canadian or American judge. They have legal training, take challenging examinations and have years of apprenticeship experience. They must be appointed by a State governor in order to practice.  Their responsibilities include practicing real estate law, retrieving and auditing taxes and closing real estate transactions.  Notaries are a neutral party in the real estate transaction, and as a result, it is recommended that you hire a lawyer if you require representation.

    The buyer will request a Mexican bank of his/her choice to act as a trustee on his/her behalf.  The trustee is responsible to the buyer/beneficiary to safeguard accurate fulfillment of the trust, according to Mexican Law. It assumes full technical, legal and administrative supervision in order to protect the interests of the buyer/beneficiary.

    The deed of trust is not considered part of the bank’s assets and they cannot claim ownership rights to a fedeicomiso.  They are merely a steward of the trust. You and those you designate are the beneficiaries. The bank attains the permit from the Ministry of Foreign Affairs to acquire the property in trust.
    The bank charges an initial fee of approximately $500 USD for drawing up the agreement and establishing the Trust plus a percentage based on the value of the property. The Fideicomiso can be established for a maximum term of 50 years.  It can be renewed automatically for an additional 50 year period. During this time, the owner has the right to sell the property without restriction, transfer the rights to a third party or pass it on to any heirs.

    Closing Costs
    The closing costs on a property in Mexico is approximately 4-6% of the total sale price.  You are required to pay a 2% acquisition tax at the time of purchase, which is a part of the 4-6% closing cost fees. In 1993 the Mexican federal government liberalized ownership provisions of all property within the ‘restricted zone’, which is all land located within 100 kilometers of the border and within 50 kilometers of any ocean.  As a result, foreigners wishing to purchase homes, condominiums and timeshares have increased legal independence and ownership rights.  Under Mexico’s Foreign Investment Law, a foreigner is allowed to obtain the rights of ownership through a Fideicomiso  or alternatively the purchase of non-residential property can be achieved through a Mexican corporation which, under certain conditions, can be 100% foreign-owned.

    Maintaining Peace of Mind
    When buying property in Mexico it is extremely important to ensure the seller has legal title of the property.  If they do, they need to ensure the property can be legally transferred.  This is done through a title search of the property.  This search must include a lien search, subdivision approvals, permitted development licenses for the land and a search for the chain of title.  The lien certificate should clearly show the owner of record, surface area and property type classification.  It should also show the legal description and any liens or encumbrances filed against the property. There are many companies that offer title examinations and reports.  They can also provide escrow services for earnest money, which is a deposit made to a seller showing the buyer’s good faith in a transaction.  It is important that buyers ask their broker or realtor if a bank trust can be obtained at the time of closing on a residential purchase.
    Buying property in Mexico can be a stress free experience by following the above outlined steps and consulting real estate professionals in the process.