Boat slips at Marina CostaBaja.
Location, Location, Location: La Paz, Mexico
November 1, 2005
Buying and Selling Property in Mexico
Americans buy and sell property in Mexico every day; the process is easier than you might think. Below are two legal matters you need to be apprised of before purchasing your private beach getaway.
Forming a Mexican Property Trust
One of the Mexican government’s laws to make property investment in Mexico safer is called a Mexican property trust, or fideicomiso. Modeled after a law used in Monaco, this trust agreement allows foreigners all rights of ownership.
The Department of Foreign Affairs in Mexico City issues a permit to a Mexican bank of the buyer’s choice to act as purchaser for the property. The bank acts as trustee, and the buyer names the beneficiary of the trust—you or any entity of your choice. By law, the property is not an asset of the bank in this arrangement. The bank is simply the trustee.
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The city of La Paz
stretches across the horizon beyond Marina
CostaBaja. (Click on image to enlarge.)As the beneficiary, you may use, occupy, bequeath or sell the property at your sole discretion by instructing the trustee of your wishes. Typically, a trust can be established within 60 days. Your purchase funds are generally held in an insured escrow account in the United States until the Mexican property trust is complete and the property rights have been transferred to you. U.S. title insurance is available and recommended for properties in Mexico purchased by U.S. citizens.
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