Real Estate in Puerto Morelos
Beautiful Condo for sale in Villas Playasol
Tel /Fax 0052 (987) 1 05 08
0052 (987) 1 03 31
Cel 0052 (98) 45 05 43
The first thing you should know is foreign ownership laws. As a foreigner you can acquire property in Mexico and hold title under your name providing that the property does not lie within 100 km. of an international border or 50 km. from the coast. Since the majority of you with probably fall within this exclusion, the following information on Fideicomiso or trust laws would apply to you.
1917, to protect national security, the Mexican Congress decided to limit
foreign ownership of property within 100 kilometers (62 Miles) of the borders,
and 50 kilometers (31 Miles) from the coast. Most of the property being sold
along the Riviera Maya and in Cancun falls into this area. In 1971 the law was
altered so that foreigners could own property in the Restricted Zone and the
Ministry of External Relations created FIDEICOMISO. This
is document that allows Mexican banks to holds the deeds to properties owned by
foreigners in the restricted zone for up to 50 years. The bank only holds the
deed and can act under instructions of the Beneficiary ("owner) of the
trust. All owners act as if they have direct title, renting, improving or living
on the property. When the property is sold, the bank must be contacted to sign
transfer documents to the new owners. All real estate rights, obligations and
profits belong to the owner.
bank will charge for first establishing the trust and then a yearly maintenance
fee. Fees vary from bank to bank
ranging from flat fees to 1 - 1.5% on the assessed value at the time of
purchase. These charges are usually in Pesos and can be updated yearly. Trusts
are contracted for up to 50 years and the cost to establish it is now the same
regardless of the specified period; thus the bank automatically drafts a
contract for the longest term, unless the client instructs otherwise.
Mexican companies in which foreigners hold stock no longer need a trust as long as the property is for business purposes such as commercial, industry, tourism or agriculture.
will approach a bank to act as the trustee with respect to the property.
Different banks have varying costs for setting up the trust. It is wise to
approach several banks and compare both their setup cost and annual maintenance
- the owner furnishes the following:
o A description of the real estate to be purchased
o The purchase price for the property
o The payment terms
o A personal data concerning the purchaser
o A statement as to the purpose of the trust.
Bank then applies to Mexico's Ministry of External Relations for a permit
authorizing the trust.
permit is obtained, the trustee, as well as the other parties involved contact a
Public Notary. The Notary functions as the closing attorney in Mexico and draws
up a deed for the property.
then registers the trust with the National Registry for Foreign Investment.
You will be able to receive an official copy of your
title from your Notary about three months after it is filed.
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