Buying Property in México

The properties in the Coastal areas of Mexico, such as The Baja California Peninsula, Puerto Vallarta, Acapulco, Mazatlan and Cancun Region, require a Mexican Bank Trust for a Foreigner to enjoy legal ownership.

The Mexican Bank Trust Deed

The Mexican Bank Trust was created in the early 70’s to promote tourist and retirement investments along popular coastlines. This is the most secure method to hold real estate on Mexico’s coasts.

Your Bank Trust must be established at an authorized Mexican Bank in their Trust Department, for a 50+50 year time period. The property you hold in a Bank Trust is yours to improve, build, sell, leave to your estate, etc. You’ll enjoy all the same rights you have in your U.S. fee simple real estate via the Bank Trust. Your Family Trust in the USA or Canada can also be the deeded owner of the Bank Trust if you so desire.

Property Taxes, Trust Fees and Homeowner’s Insurance Annually:

The annual property taxes in Mexico are very low. There is a one-time property tax that is paid at closing an acquisition tax, that is part of your closing fees.

Your annual fees on a $450,000 home would look something like this:

Annual Bank Trust fee $550.00, Property Tax $400; Homeowners insurance $350.00 approximately.

How does a Mexican Property Purchase Closing Work?

The laws in Mexico work very well for Foreign Buyers. The system is clear and there are a lot of checks and balances that are in place to protect your real estate investment. When an offer is made and accepted by all the parties, then we set about to obtain the survey, current appraisal, Letter of Instruction from the Seller to the Bank that holds the Trust to place in the new Buyer’s names, which includes naming their beneficiaries. We open the file with a Notary. A Certificate of no Liens is required at closing, a letter from the bank stating the Bank trust fees are current, the property tax receipt for the current year and a letter from the Home Owner’s Association that all those fees are current and there are no pending assessments with the HOA The Notary verifies the “Chain of title” and will not sign the document until all the required documents are in order.

Can I inherit my Mexican Property?

Your beneficiaries are named in the Bank Trust document when the Bank Trust is placed in your name. When you apply for your Bank Trust, you name each beneficiary and list the percentage of ownership of each heir within the document. Should something happen to you, your heirs will need to take an official copy of the Country of Origin death certificate and have it translated into Spanish.

You can also have a Mexican Will for other assets such as the contents of your home, cars, and other items.

Baja California Real Estate Brokers Association