Public Notary
After the offer has been accepted, the public notary (a government-certified lawyer) will handle and notarize all the closing documentation necessary for the proper transfer of real estate. This includes the registering of wills, appraisal of property for tax reasons, certificate of title search, and the formation of corporations etc.
Bank Trust and the Restricted Zone When it comes to the Restricted Zone, the only legal way a foreigner can buy property is through a bank trust (Fideicomiso). The buyer can appoint the Mexican bank of their choice to act as a trustee on their behalf. As a trustee, the bank will actually legally own the property. However, all the rights to the property will exclusively be held by the buyer. What this means is that the buyer will be able to use, improve, rent or even sell the property as though they directly owned the property.
Registration at the Ministry of Foreign Affairs With any type of real estate acquisition, foreigners always need to register the ownership at the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores). The rights to ownership are granted when the foreigner agrees to comply with Mexican law and to waive their rights to foreign government intervention. By doing so, the foreigner is considered a Mexican National with the corresponding rights. In the case of acquisition of property in the Restricted Zone, it is the bank that requests the acquisition of the property at the Ministry of Foreign Affairs.
Closing the Transaction The signing of contracts or “closing” the transaction must happen in front of the Notary Public. Just before this is done, the remaining amount needs to be deposited (once again these should be to the accounts of the notary or closing agent). With the signing and certification of the contracts, the deposits are transferred to the seller and the property to the buyer. It is common practice that the buyer pays the closing costs involved including acquisition tax, notary fees and other expenses. After signing the contracts and depositing the payments, the transfer of the property should not take longer than 45 days. And then, that property in Mexico is yours!
After the offer has been accepted, the public notary (a government-certified lawyer) will handle and notarize all the closing documentation necessary for the proper transfer of real estate. This includes the registering of wills, appraisal of property for tax reasons, certificate of title search, and the formation of corporations etc.
Bank Trust and the Restricted Zone When it comes to the Restricted Zone, the only legal way a foreigner can buy property is through a bank trust (Fideicomiso). The buyer can appoint the Mexican bank of their choice to act as a trustee on their behalf. As a trustee, the bank will actually legally own the property. However, all the rights to the property will exclusively be held by the buyer. What this means is that the buyer will be able to use, improve, rent or even sell the property as though they directly owned the property.
Registration at the Ministry of Foreign Affairs With any type of real estate acquisition, foreigners always need to register the ownership at the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores). The rights to ownership are granted when the foreigner agrees to comply with Mexican law and to waive their rights to foreign government intervention. By doing so, the foreigner is considered a Mexican National with the corresponding rights. In the case of acquisition of property in the Restricted Zone, it is the bank that requests the acquisition of the property at the Ministry of Foreign Affairs.
Closing the Transaction The signing of contracts or “closing” the transaction must happen in front of the Notary Public. Just before this is done, the remaining amount needs to be deposited (once again these should be to the accounts of the notary or closing agent). With the signing and certification of the contracts, the deposits are transferred to the seller and the property to the buyer. It is common practice that the buyer pays the closing costs involved including acquisition tax, notary fees and other expenses. After signing the contracts and depositing the payments, the transfer of the property should not take longer than 45 days. And then, that property in Mexico is yours!