Buying Property in Mexico 101: A Complete Guide for Expatsby West Coast Global Insurance West Coast Global Insurance
Are you looking into buying property in Mexico as an expat?
When compared to most foreign markets, Mexico is familiar to Americans. Unfortunately, that familiarity can mislead American expats in Mexico into believing that Mexico has the same processes and protections as the United States—and that is not true.
This step-by-step guide will walk you through all you need to know about buying real estate in Mexico:
Step 1: Once you have found the right property, put in an offer, and settle on a price. This can be done verbally—either with the seller or through your realtor.
Step 2: Sign the buy/sell agreement (Convenio de Compraventa) detailing the price and payment arrangements, as well as the terms of the sale, including inclusions and exclusions, and penalties for noncompliance.
Step 3: Put down a deposit. Typically, this will be between 5% and 10% of the sales price.
Step 4: If the property is within the restricted zone—31 miles or less from the coast or 62 miles along the borders—you will need to establish a trust with a local bank (also called "Fideicomiso").
Step 5: Obtain permission from the foreign secretary's office to complete the purchase. You will be asked to sign the "Calvo Clause," in which you agree not to seek assistance from your government in dealings with your property transaction. In other words, Mexican property law will take precedence.
Step 6: Check with your attorney to check that there are no existing liens on the property and that it is not included in an ejido land claim.
Step 7: When the deed is signed over to you, pay the closing costs. Closing costs include your Mexican attorney and notary fees, transfer tax, and a few other expenses, such as the fideicomiso setup fees. If you get a mortgage, your closing costs will be higher.
Do not Forget to Buy Mexico Insurance.
As a property owner, you need Mexican homeowners' insurance to protect your investment, and Mexico is no exception. Covering your property with the right type of property insurance in Mexico is an absolute must and should not be overlooked. Mexico home and condominium insurance coverage provides protection against losses due to theft, liability exposure, and natural disasters. Having the proper Mexican home insurance will limit the amount of money you pay out of pocket in the event of unforeseen circumstances and damage that can happen when owning a property in Mexico.
Do you already own a Home or Condo in Mexico and looking for Mexico Home Insurance?
Contact West Coast Global Insurance Services! They specialize in ALL RISK online Mexican insurance for homes and can offer you the most comprehensive coverage available in Mexico’s insurance marketplace. Call them today for a free no hassle quote or click this link to start your online Mexico home and condominium application now!! (818) 788-5353
Created on Jul 9th 2021 06:32. Viewed 115 times.