PURCHASING THE DREAM HOME IN MEXICO

Mexico is an exciting place to live for those who are retiring, for those who are working from home on a computer link with their company, for those who are looking for a vacation home or an outstanding investment  and above all, for those who dream of a better quality of life!

Procedures in searching titles and transferring property are similar to those of the United States and Canada.

The buyer of a house, condominium or lot in Mexico must ask the same questions, and should receive answers similar to those received when buying a property elsewhere.

There a couple of rules those are important to consider before buying a property. The rule number one is SELECT THE COMMUNITY AND COMPANY THAT FITS YOU: A review of the local newspaper or telephone directory will give a listing of the real estate companies in the area. Through NAFTA agreements, the Association of Mexican Real Estate Professionals (AMPI), is now affiliated with the U.S. National Association of Realtors (NAR).

Once the area is selected and a list of the AMPI companies operating there has been obtained interview the owners and operators of the companies. Ask for references, ask for a professional resume. Interview carefully the persons that most impress you.

The second rule is ; EXAMINE THE NEIGHBORHOOD

Once you have selected the right community, an agent with whom you feel comfortable, AND a possible property, check out the neighborhood. Is it new? Is it old? What will it look like in ten years? Are highways or other development projects planned for the future? Where are schools, churches, shopping facilities? Are there homeowner fees for maintenance of common areas? If so, how much are they and when are they paid? Are all the utilities in and paid for? What does the developer have left to do? What building restrictions are there? Are there covenants and conditions registered for the usage of the land?

In many parts of Mexico there is no enforcement of a master plan or building codes.

This can affect the changing face of the neighborhood you have selected.

Rule number three : BUDGET FOR YOUR PURCHASE, CHECK TITLE AND UNDERSTAND THE MEXICAN BANK TRUST(FIDEICOMISO)

Closing Costs will range from 4% to 30% (yes, 30%!) of the total cost of your property. Costs of transfer include title search, transfer taxes, bank fees, government permits and notary fees. Your seller may assist in some of these; especially those related to title search and insurance. Be sure to get a written estimate so that you will not have unwelcome surprises at the date of transfer of title!

The prudent buyer of real estate in the United States or Canada would not consider leaving his title "in limbo" in either of those two countries; one should not do so in Mexico either.

The foreigner purchasing real estate in Mexico is buying personal, not real property if the acquisition is on the Baja Peninsula, within thirty miles of any coastline on the mainland, or

within sixty miles of any border. The acquisition is personal property.

A permit to acquire the rights in the property must be obtained from the Secretary of Foreign Relations and the terms of the permit form a part of the deed. Currently, the term for a trust is fifty years. Multiple renewals are permitted under the law.

Another rule , very important is : INVESTIGATE THE STATUS OF THE CONDOMINIUM REGIME this means a word of caution for those who are considering the purchase of a condominium or a lot in a subdivision. Just as in other countries, the unit, or lot must be legally described and an individual property tax number issued. This individual property must be registered in both the Property Tax Office and in the Public Registry of Property.