After been in Mazatlan at least one time and had a wonderful time, it comes to peoples mind the romantic idea of buying a property to live or retired in Mazatlan. But, can you really own a property in Mexico?
YES, and it is very easy to do so, the process is very similar as the process in United States and Canada, only that property in Mazatlan is a lot less expensive than it is in USA, Canada or Europe. With the success that Mazatlan Real Estate has accomplish, now banks in the USA are giving loans to people to buy property in Mexico.
There is a restricted area for foreign to own a property title, and that is 100 kilometers (62.13 miles) from any border and 50 kilometers (31.06 miles) form the coast, that is explain in article 27 in the Mexican Constitution made in 1917; this was done to prevent a foreign invasion.
With the years and the opening of the commercial trades between Countries, they figured out how to benefit people that wanted to invest in beach destinations, and added a legal privilege, that is called FIDEICOMISO.
Fideicomiso is a TRUST, and it mainly protects the foreign buyer rights.
How it works?
When buying a property you get a Mexican bank to have your Fideicomiso (Trust) with and to hold the Title, and in that Trust you will be shown as beneficiary; as beneficiary you have the right of use and to do what ever you want with your property as the owner that you are. It can be as many beneficiaries as you want them to be, you can sale your property, rent it or give it away; in case of death you can name a beneficiary that will heritage all your privileges, Fideicomiso can be renewal indefinitely.
During the buying process you will be dealing with different people, and it is recommended that you hired a bilingual attorney that will be advising you, work and see for your best and review documents during the whole process; do some research before to choose the Real Estate company so you can feel comfortable working with as well as the Bank; probably the most relevant in the process is the Notary Public.
In Mexico Notary Public must be a Lawyer over 35 years old with at least 3 years of experience in notary public office and successfully approved a difficult exam to become a Notary Public, then he or she is certified and authorize directly by the State Governor to practice as a Notary Public.
It is a position of a lot of responsibility, since the deed is made by him. He is also in charge of verified that taxes are paid by the previous owner and to have all documents in order and have followed all the steps and regulations in the process, and he is legally responsible for that. The closing and contracts must be done in the presence of the Notary Public. Usually the fee to pay to a Notary Public is 1.5 % of the transaction value.
Foreign have to register any property purchase at the Ministry of Foreign Affairs and you recognize Mexican laws and decline any foreign government intervention. The foreign then is considered as Mexican national with the corresponding rights, In the case of properties in the restricted areas, the bank will be the one in charge doing the process. You don’t have to live full time or be a resident in Mexico in order to invest in Mexican property.
A big percentage of US and Canadian citizens have taken advantage of the great Mazatlan Real Estate opportunities, and low property taxes. There are so many good stories of people making the romantic dream of living in Mazatlan come true, and enjoy every day life in Paradise.