When non-Mexican nationals buy Mexican real estate at the beach there are four key parties involved in the process in addition to the buyer. Buying Mexican real estate at the beach means that you will be purchasing within the restricted zone that is applicable when the property is within 50 km of the beaches and borders of the country. While it is still totally possible for foreigners to purchase Mexican real estate at the beach within the restricted zone, it requires an extra step, as you will see explained below.
Key parties in Buying Mexican Real Estate at the Beach
● A realtor (optional)
● Buyer’s Attorney (optional)
● Fideicomiso Bank trust (obligatory for foreigners)
● A Notary (obligatory)
A realtor for buying Mexican real estate at the beach
The real estate company offers much needed support and guidance when it comes to finding and buying your home, but also when it comes to the processes, laws, and regulations of real estate in Mexico. Each and every country has it’s own process when it comes to buying property so it never hurts to have the help of experienced and knowledgeable individuals. Nevertheless, using a realtor is not essential and you may well find a property for sale by other means.
Like using a realtor for buying Mexican real estate at the beach, hiring a buyer’s attorney is not essential, though very reassuring and useful. An attorney will represent and protect you in all legal dealings. In this case they can draw up contracts and reviews the terms and conditions of the sale as well as providing advice. However, only a licensed Mexican attorney should provide such advice as foreign attorneys are not licensed to practice law in Mexico and will not be qualified to provide you with advice on these matters. An attorney may also help you save money as they will be aware of the standard costs and fees and will be able to work to get you the best prices at each stage.
A Notario Publico (Notary) is a licensed Mexican attorney who has been certified by the state and federal governments to act as an unbiased and official representative for the Mexican government. There is no way that you can purchase Mexican real estate at the beach (or anywhere else in Mexico) without the services of a notary. And that goes for both foreigners and Mexican nationals. Notaries in Mexico have similar duties to those performed by Canadian notaries and have great responsibility (more than a notary would in the US, for example). A Notario Publico has to pass stringent exams and is considered a governmental official; their duties include providing strict security when it comes to original records and documents. They record all documents with the Public Registry of Property, and could be held liable in a court of law if something goes seriously wrong! The role of the notary is so important that any real estate transaction not ratified before one (and duly recorded) is considered invalid and unenforceable! In real estate transactions the notary is equally responsible to the buyer and seller, but ultimately works for and answers to the Mexican Government.
Fideicomiso bank trust
Finally, if you want to buy Mexican real estate at the beach you are going to be buying a property within the restricted zone. This means that you will require a Trustee Bank to act as a fideicomiso (trustee) for you. You can choose any established and qualified bank so long as they are registered in Mexico and have a Trust Department; the bank will ensure that the closing is legal and appropriate and will issue a trust for the real estate for your use alone. The bank cannot transfer ownership, change beneficiary rights, or do anything with the property without your written instruction, too, so you can be sure it is totally legitimate and safe. Better yet, Mexican banks have the protection of the government when it comes to warding off bankruptcy; the trust is guaranteed indirectly by the government.
If you buy property in Mexico you’re likely to deal with these four key parties at some point or another.