CAN FOREIGNERS REALLY OWN PROPERTY IN MEXICO? Yes, Americans and other foreigners may obtain direct ownership of property in the interior of Mexico. However, under Mexican law, foreigners cannot own property outright within the restricted zone. Instead, a real estate trust must be set up to hold title for the foreigner. Since foreigners are not able to enter into contracts in buy real estate, they must have a bank act on their behalf, much as a trust is use to hold property for minors because they also can not contract. The following is a brief outline of the law regarding such trust, known as "fideicomisos", but potential buyers should always get advice and have all real estate transactions overview by a licensed Mexican attorney. WHO'S INVOLVED IN REAL ESTATE TRANSACTIONS IN MEXICO? Normally, there are four to five players involved in any real estate transaction in the restricted zone: - A real estate company
- The buyer's lawyer
- A bank
- A public notary
- Land Title/Insurance
All four are helpful in their respective areas in assisting with real estate transactions. Transactions outside of the restricted zone do not involve a bank since it is not necessary to establish a real estate trust in those areas. Otherwise the transactions are much the same. (Adapted from Mexonline.com 09/06) |