Recently, Mexico began licensing offices and real estate agents in certain states, and Quintana Roo is one of them. It is not even close to the strong laws applied in the US yet, but it is a good start and national real estate associations like AMPI are forcing their members to become certified and licensed. Every day you will see more and more professionals, well-trained and honest agents taking up this noble career.
More and more Americans and Canadians are heading south of the border in search of the sun, the beaches, and the rich Mexican culture and enjoying the excellent cordial service of Mexicans. Many of them decided to buy a little piece of paradise down here to enjoy a vacation home, retire, or invest.
Buying a house in Mexico is an easy procedure when you have a professional broker at your side.
The buying process for foreigners looking to buy real estate in Mexico is simple and direct. If you have done your due diligence, and are represented by experienced real estate professionals and a highly recommended notary, you will have no problems.
Mexico passed the Foreign Investment Law in 1973, allowing foreigners to buy real estate anywhere in the country, the only restrictions are coastal and coastal lands (within 100 km of international borders or within 50 km of the coast).
In 1993, the law was amended to allow for purchase within restricted areas through a trust, a trust agreement established with a Mexican bank.
A trust allows a foreign buyer to own property with all the rights and privileges of a citizen.
With a single trust, you can have multiple Mexican properties, own them in perpetuity, and hand them over to your heirs. Also, you can easily transfer the trust to another foreign buyer, if you want to sell.
A trust is valid for 50 years and is renewable thereafter (by you or your heirs). It can be maintained by one or more people or by an entity (an LLC, for example). Initial setup costs range from $ 500 to $ 1,000, and maintenance fees range from $ 500 to $ 700 per year.
Foreigners may also own lands in restricted areas through a Mexican corporation, and these maybe 100% foreign-owned.
You should only consider a corporation if you are buying real estate strictly for investment or business. If you plan to subdivide and develop the land, a Mexican corporation makes sense. Corporations come with more restrictions and disclosure requirements than trusts.
They are required to submit monthly income and expense reports, completed by a certified accountant, to the Mexican Treasury Department. And the assets held in a corporation are considered commercial, so they are subject to additional taxes (VAT, for example). The initial costs to establish a corporation will vary depending on the lawyer you use, but the minimum required is $ 50,000 Mexican pesos (approximately US $ 2,800 in today's exchange). It will also incur costs for the certified accountant to maintain (from $ 600 to $ 800 a year).
Regardless of the use of your property, your attorney must participate in the review of your legal status, including the search for titles, the review and preparation of contracts, and the creation of your trust or corporation. Many title companies are now available in Mexico.
The buying process should go like this ...
OFFER AND ACCEPTANCE
Make an official offer.
Although Mexican law recognizes verbal agreements, both the offer and the acceptance must be made in writing, ensuring that there is no confusion in the terms and conditions. Your offer must be submitted in the form of a "Purchase Offer" contract, which details the main terms of the sale, including the price, payment plans, details about a money deposit, and a deadline for the seller to accept the offer.
Once the deposit is made, the promissory contract (promise contract) will be drawn up, which would bind the buyer and seller within a period to execute the purchase contract. Having this in place conforms to the basic terms of the offer, while you and the seller track all the documentation you will need to complete the purchase contract, which may take some time. It also gives both parties time to work out the details of the final purchase contract.
Under Mexican law, both parties are bound by the terms of the promising agreement: if all the terms and conditions for executing the purchase contract are met, neither party can withdraw from the sale.
Once the promissory agreement has been signed, the seller contacts his bank (the one he used to set up his trust) to initiate the trust application. His lawyer then orders a trust permit from the Ministry of Foreign Affairs.
During this time, your attorney must also verify the legal status of the property, including reviewing the title, confirming that the seller has the right to transfer the title, and reviewing the terms and conditions of the purchase contract. You will also need to request documentation from the seller, such as a certificate of non-liens, a certificate of non-tax liability, and a property appraisal.
The buyer's required documentation is minimal - all you need is a copy of your passport and driver's license, a recent utility bill showing your name and address, and company documentation (if applicable). These are presented to a notary and filed in the public registry.
If everything is in order, the notary and his attorney will work with the bank to write and finalize the trust documents.
PURCHASE CONTRACT - SALE
Make an official offer. Although Mexican law recognizes verbal agreements, both the offer and the acceptance must be made in writing, ensuring that there is no confusion in the terms and conditions. Your offer must be submitted in the form of a "Purchase Offer" contract, which details the main terms of the sale, including the price, payment plans, details about a money deposit, and a deadline for the seller to accept the offer.
CLOSING AND TITLE PASS
Once everything has been verified as correct and all closing documents are ready, you will be notified of the closing date and final closing costs. At closing, the final deeds will be notarized, final payments will be settled, and the property title will be officially transferred to the bank's trust. The notary then issues a notarized copy of the closing deed. This is your first proof of ownership and can be used to put utilities in your own name.
Approximately three months after its closing date, the Public Registry issues the final deed that contains an electronic publication, a copy of all the certificates and payment of rights.
RETIRE IN MEXICO
Retirees in Mexico live active, healthy lifestyles supported by Mexico's pleasant climates, first-class services, and affordable costs of living.
People who have retired in Mexico comment on how they enjoy and savor their active and enjoyable lifestyle and activities. Retirees in Mexico and in the country frequently top the popular lists of "the world's best places to retire."
As a country, Mexico has a huge number of offers for retirees. You have a variety of climates, ranging from a year-round spring climate to warm, humid waterfront locations and the dry heat of the desert.
The rhythm of life in Mexico is ideal for retirement; You can relax and continue to lead an active retirement. Although stress levels depend on each individual, the relaxed atmosphere of Mexico, the pleasant climate, friendly people, and a welcoming culture provide an ideal environment for living under stress.
The food is wonderful. Fresh fruits and vegetables, meats, and fish are available at local markets, and you'll get great value for your money. There is a huge variety of tropical fruits, which are sweeter and juicier than those shipped to colder climates.
Fresh locally produced food is also less expensive in Mexico, although prices and quality vary throughout the year, depending on the season. The variety of vegetables is also immense, including local types like nopales (cacti) and chayotes. Mexico is also home to avocado and is the world's largest producer of fruit.
Retirement lifestyles and living standards in Mexico
For those who know Mexico, retirement here can be part of a dream come true. Retirees in Mexico enjoy great weather, great food, a rich culture, and warm and friendly people.
Some retirees move to local Mexican communities and integrate there; This can make the whole experience of life in Mexico much more valuable and satisfying.
For those with hobbies, hobbies or interests can almost always be done in Mexico. Internet communications can keep you up-to-date with the latest news, information, and sports scores if you want to stay on top of what's going on at home. If you like participating in sports, Mexico offers the weather, groups, and services for you to actively participate.
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Many people continue their passion for hobbies like art, photography, and writing, using Mexico as their landscape and inspiration. Some find that their work can be sold within or outside of Mexico, supplementing their income.
Other people get involved in social work: they help disadvantaged communities build new infrastructure, get involved in charity work, share their extensive knowledge and experience of life with others, and make a significant and positive contribution to the communities where they live. in a wide variety of ways.
There is no better time to learn Spanish. Surrounded by language, wrapped in a country passionate about its history and culture, there is no better place to learn than in Mexico.
Language classes are available everywhere.
If you consider retirement to be an opportunity to improve your golf game, Mexico has no less than three of the world's top ten golf courses for you to try, and dozens more.
You can retreat to Mexico in complete isolation if you wish, buying a property in the midst of breathtaking scenery, with nothing but nature around you for miles.
Or you can live in the middle of one of the towns or cities of Mexico surrounded by local communities, sharing their culture and way of life, or something in between.
Whatever you want, you will find something that suits your tastes somewhere in Mexico.
Many retirees buy 2 or more condos to live in one and rent the others for an income.
"The return on investment in rental properties in tourist areas is usually 6-12% per year."