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Ensure a safe Mexico
purchase
By Justin Hunter |
As the U.S. housing market continues
its downslide, investors and prospective home
owners in general are looking into newer more
prosperous markets.
There are real estate markets all over the globe
that are trying to get into the market mainstream
forefront.
Mexico is no longer trying to become a major force
in the real estate world, it is already there.
Mexico real estate offers a plethora of vacation
and investment properties inland or in coastal
regions with prices that are half the U.S.’s
with twice the potential.
The Mexico government has also made immense improvements
to foreign real estate rules and regulations.
Mortgages are now offered in 30-year term, which
are comparable to those in the U.S.
But as Mexico has been developing and implementing
its real estate strength and credibility over
the past decade, there are still many skeptics.
An article, “Buying real estate in Mexico,”
posted on stewartaffiliates.com, provides helpful
tips to those skeptics, to ensure a successful
real estate transaction in Mexico.
The first thing to know about Mexico home ownership
is that you need to obtain a title policy (fideicomiso).
“Property owners tend to believe that
the notario público and the public registry
assure ownership of realty in Mexico. However,
Mexico’s public notaries do not provide
a warranty protecting a purchaser’s rights
as vested in the title. A title policy is the
only monetary indemnification a buyer can procure
to guarantee ownership of Mexican real estate.”
Now that you notice the difference of property
ownership in Mexico, there are a couple (six actually)
principles you should follow to avoid home buyer
risks.
Prior to signing any paper work, you should determine
whether the seller has legal ownership of the
property and if it can be legally transferred.
You may want to hire a lawyer to help determine
this.
The second principal is to “hire Mexican
counsel or a title insurance company to search
the ownership status back to the sovereign.”
Again, this is sort of a checks-and-balances process.
Next, have your lawyer or legal counsel thoroughly
review the buy/sell agreement, which will describe
in detail the transaction’s terms and conditions.
Hire a title company to handle the escrow of funds.
A title company will ensure that everything is
done legally.
“Obtain a property
ownership insurance policy to protect against
recording errors, liens, encroachments, taxes,
fraud, misrepresentation and other ownership issues.”
One more thing to abide by is if you are buying
a condominium, it is vital to examine the documents
within the condominium regime (the regimen de
condomínio and the like), which will clearly
define your rights, obligations and restrictions.
Mexico real estate ownership offers an amazing
investment opportunity. You just have to take
your time and actually read the documents carefully.
If there are any questions or unclear documents,
notify your law representative. |
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