The real estate industry in Mexico is regulated be the Political Constitution of Mexican; however, purchasing a property also involves complying with Federal, state and municipal laws.

“Our Mexican Constitution defines the Restricted Zone as an area comprising up to 100 kilometers inward anywhere along Mexico’s international borders, as well as an area up to 50 kilometers anywhere along Mexico’s coastline.”

The legal procedure to buy a property in restricted areas are true a bank trust (Fiduciary):

Is a contract between a property owner (grantor)and a Mexican bank in order that an alien who wishes to acquire the property has the benefit of use and enjoyment of the same. The Trustee or fiduciary (bank) will be who acquires the property on behalf of the foreigner (Beneficiary) and who retains ownership of the property. However, the fiduciary or trustee obligation establishes that the Beneficiary will have all the benefits of use and enjoyment to the law and to act for the benefit of the owner (grantor) and abroad (Trustee). The Bank (Fiduciary) administer and will retain the title of the property for periods of 50 years each. Abroad during that period, the Beneficiary may sell, rent, mortgage, donate, inherit, name future Substitute Trustee Beneficiary of the property in question with the express authorization of the Bank and the owner of the property (Beneficiary).

For commercial or industrial purposes only, foreigners may constitute a Mexican company or corporation through which the foreigner can acquire real estate property, after obtaining the relevant permit from the Mexican Ministry of Foreign Affairs. Incorporating and maintaining a Mexican corporation, like in many other countries, does involve a reasonable amount of legal expenses going forward, which often make sense due to the business nature of the entire setup.

BEFORE BUYING OR SELLING A HOUSE

be advised that the deeds or documents have the support established by the law, so that you have complete confidence that you are not buying problems. be sure of:

• The name of the original owner of the house or land, is registered in the public registry of property on the area.
• If the house or property has file liens, mortgage liens or bank debts.
• Official surface of the land or constructions.
• If the property has tax debts, property taxes, water or electricity service.
• Cadastral key.
• Original Deeds NO certified copies.