Frequent Questions
about Mexico Real Estate Transactions
1. As a foreigner, can I legally buy property in Mexico?
2. Do I need to consult with a lawyer?
3. How reliable is the property information you provide?
4. What is the best vehicle to hold title to a property in Mexico?
5. What costs are involved in closing a property transaction?
6. Is title insurance available in Mexico?
7. How much is the property tax?
1. As a foreigner, can I legally buy property
in Mexico? Yes, you can buy properties in Mexico. Please contact
us so we can answer all of your questions.
2. Do I need to consult with a lawyer? We
always suggest to our clients that they consult with a reputable law
firm before contemplating the idea of buying a property. Our in-house
lawyer will guide you through the process.
3. How reliable is the property information
you provide? Before presenting a property to you for consideration,
we always take a copy of the actual deed to a notary public to check
its validity.
4. What is the best vehicle to hold title to
a property in Mexico? We will help you choose the best vehicle
to hold title to your property. For residential purposes, a bank trust
called a "fideicomiso" is used. For commercial property, you'll have
to form a Mexican company, 100 percent foreign owned.
5. What costs are involved in closing a property
transaction? Capital gains tax, if any, is paid by the seller,
but through mutual agreement it may be paid by the buyer. Based on
the title information on hand, the notary public will provide the precise
costs before closing the transaction. The buyer typically pays notary
fees, the appraisal, the certificate of no liens, certificate of taxes
paid and the title search. The seller is responsible for the real estate
commission.
6. Is title insurance available in Mexico? American
title insurance is now available in Mexico.
7. How much is the property tax? Property
taxes are only about one-half of one percent of the property value in
the Los Cabos region of Baja California Sur.
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