The Riviera Maya, with its white sand beaches, turquoise waters and a relaxed way of life has become a dream destination not only for holidays, but also to invest in real estate. If you're a foreigner and you are considering buying a property in this region, it is important that you know the legal process and the requirements that Mexico provides for you to acquire real estate in a safe manner. Here we will explain to you step by step how to do it.
1. Can Foreigners Buy Property in Mexico?
Yes, foreigners can buy property in Mexico, even within the so-called “restricted zone”, which includes areas is 50 km from the coast and 100 km of the borders. The Riviera Maya is a coastal region, it enters into this restricted area. However, there is a legal solution is very simple: the bank trust.
2. What is the Trust Banking?
The trust is a legal mechanism that allows foreigners to acquire property within the restricted zone. It works in the following way:
- The bank acts as trustee (trust manager), but you are the beneficiary the trust, which means that you have total control over the property. You can use it, sell it, rent it or heredársela whomever you like.
- The trust has an initial term of 50 years, but can be renewed indefinitely.
- Although the bank is the legal owner of the property, unable to make decisions about the same without your consent. You keep all the rights as an owner.
This process is common and safe, as it is regulated by the mexican law, and has been used by thousands of foreigners to acquire property in the Riviera Maya.
3. Choose the Property Right
Before you begin with the legal process, it is important to define what type of property you are looking for. The Riviera Maya offers a wide range of options, from condos in Playa del Carmen to luxury villas in Tulum. Here are some tips for choose:
- Location: Evaluates if you prefer to stay near the beach, in a central area or in a quiet area.
- Purpose: Is it for personal use, vacation rentals or long-term investment?
- Budget: Defines how much you are willing to invest, including additional costs such as closing costs.
Have a real estate advisor with experience in the area is key to help you find the best choice according to your needs.
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4. Make an Offer
Once you find the ideal property, the next step is to make an offer. In Mexico, the process is similar to that of other countries, but it is common that the offers are made in writing via a letter of intent, which sets out the terms of purchase, such as price and the closing dates.
If both parties are in agreement, signing a promissory contract of purchase-sale, which ensures that the property will remain reserved, pending completion of the legal process. At this point, it is often required deposit, usually 10% of the sale price to be a resale or 30% to be pre-sale.
5. Legal review and Due Diligence
It is essential that a lawyer specializing in real estate, review all the documents before you proceed with the purchase. Some of the key aspects that you should check are:
- Title: Make sure that the seller is the legitimate owner and that the property is free of liens or debts.
- Permissions and licenses: In case of new developments, to verify that you have all construction permits and licenses that are required.
- History of the property: To investigate whether the property has had legal problems or if you are involved in disputes.
This process is known as “due diligence” and it is crucial to ensure that the purchase is carried out without complications.
6. Creation of the Trust
If the property is located within the restricted zone, the next step is the creation of the bank trust. For this, you will need:
- Choose from a mexican bank that will act as trustee.
- The bank will request for approval to the ministry of Foreign Affairs of Mexico to establish the trust, which is a formal process and common.
This process usually takes a few weeks.
7. Signing of the Public Deed
Once you have established the trust, it is time to sign the public deed before a notary. In Mexico, the notaries are public figures in charge of validating and formalizing the real estate transactions, so that their role is crucial in this step. The notary will ensure that the whole process complies with the law and that the writing is duly registered in the Public Registry of the Property.
8. Additional Costs
When buying a property in the Riviera Maya, it is important to take into account some additional costs, such as:
- Tax acquisition.
- Notary fees.
- Costs of the trust.
9. Completion and Registration
Once signed the deed, the property is officially yours. The notary will register the deed in the Public Registry of the Property, which can take some months. After this, you will get the documentation that you accredits you as the owner.
10. Maintenance and Management of the Property
After the purchase, if you don't plan to live in the property full time, you may want to consider hiring a property management company. They will be in charge of managing the revenue, the maintenance and any issues that may arise, which will allow you to enjoy your investment without worries.
In conclusion, buy a property in the Riviera Maya as a foreigner is a simple process if you follow the right steps and accounts with the support of professionals. From the selection of the property until the signing of the deed, every step is designed to protect your investment and guarantee a safe transaction. You're now ready to convert your dream of owning a property in paradise a reality!
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