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Building in Mexico can get interesting. Are you looking
to build and don't know who to trust? We can answer your
questions about owning land in Mexico and offer expert construction
consulting, as well as life logistics in Mexico. Let us answer
some of your questions, then maybe let us build your Dream Casa!
OWNING
PROPERTY IN MEXICO
Since 1973 foreigners (non-Mexican) have been able to purchase property
with coastal and border properties owned through a trust deed established
with a Mexican bank. Foreigners may directly own rural or urban land
in the interior of Mexico with certain limitations on specific agricultural
tracts.
Trust
Deed Ownership
The Trust Deed is established through a Mexican bank assuring foreign
buyers of all rights and privileges of ownership. As of 1994, the
Foreign Investment Law allows these deeds to be established for a
term of 50 years and are renewable upon termination. This process
protects the rights of foreigners and makes sure that the transaction
is legal and unencumbered.
Title
Insurance
Starting in 1996, Stewart Title Guarantee Company has agreed to underwrite
title insurance to our clients, should they wish to have it. The cost
for this insurance will be approximately 1% of the insured amount.
We view this commitment by the one of the largest and most liquid
Title Guarantee companies in the World as a strong endorsement of
the security of the Real Estate business in Mexico.
Taxes
Property taxes are very low in Puerto Vallarta. Known as 'Predial'
-- the mil rate is .08% of the assessed value, paid every bimester,
determined at the time of sale. Property taxes have historically been
low in Mexico because they have never been considered a source of
governmental revenue.
The
Closing Process
The closing process generally takes between 30-45 days, with paperwork
and escrow processes coordinated through our offices and a local public
Notary. Closing costs are paid by the buyer; with the seller paying
any capital gains taxes and real estate fees. The buyer and seller
need not be present at closing, but may be represented by their Sales
Associate via a power of attorney.
Property
Ownership Through a Corporation
A 1994 change in the Foreign Investment Law now allows Mexican corporations
-- even those with 100% foreign ownership -- to own property in the
'restricted' area, as long as it is commercial property. Commercial
properties carry higher water & electricity rates, plus require
additional governmental reporting. |
