SETTING UP A TRUST AND OWNING IN MEXICO
There is a common misconception that most of the people who live outside Mexico think that you can't buy real estate in Mexico, you have to lease it. The thing is that you own the property for the term of the trust (50 years) and you or your survivors can renew for another 50 years. The bank is the trustee and you are the beneficiary of the trust. It would take an act of congress to change this law! It is not going to be changed on a whim. It has been in effect for 30 years.
Ultimately, foreign buyers get to the point where they are ready to have the transaction consummated and take title of the property. In Mexico , all real estate transactions and the legal conveyance of any type of property involve the participation of the notario publico. Although their title translates to 'public notary', the notario publico's responsibilities greatly exceed the formalization of signatures. Appointed by the Governor of the State and the Executive Branch of the federal government for a particular state district, notarios are attorneys that must pass two extensive examinations in order to receive their lifetime appointments. In a typical transaction, they will prepare the deed of conveyance subject to the 'protocolized' purchase-sale agreement. The notario brings buyer and seller together for the formalization of the property transfer and they authorize the appropriate signatures upon execution of the escritura. And lastly, after the property transfer has been formalized, the notario will record the escritura with the public registry of property where the property is located. Prior to the closing, the notario's additional duties include: (i) to examine the documents of the selling party to ensure their accuracy and legitimacy; (ii) to verify title; and (iii) to search the public records to determine the status of the seller's title to the property and the existence of liens against the property. The notario is also responsible for the collection of all applicable property taxes and government transfer taxes. As a representative of the State, however, the notario does not insure title to the real estate nor do they have any legal responsibility for title defects. In short, a purchaser can not seek restitution against a notario in the event the purchaser suffers a monetary loss due to a title defect unless fraud, misrepresentation or gross negligence could be proven in a Mexican court of law.
There are many steps to accomplish for non-mexicans who want to buy real state in Mexico, just to name some of them:
- Select a broker you are comfortable with (confidence is very important)
- Find a house
- Get a contract (in spanish)
- Sign the contract and make a 5% deposit.
- Wait for the resolution 90 days.
Purchasing your home with Oceanside Developments is even more simple. We handle all the paperwork, we have in our staff a group of experienced lawyers, brokers and "notarios publicos". A Notary Public is the person that testifies legally that all paperwork was done correctly and lawfully. Then he places his stamp his signature on the final contract. With Oceanside Developments you don't have to worry about all the paper work or the search for a good, professional broker, or "notario publico". We will lead you all the way through your buying experience.
