CAN A FOREIGNER BUY A PROPERTY IN PLAYA DEL CARMEN?

According to article 27 of the Constitution of the Mexican Republic, no foreigner can directly acquire the ownership of land or real estate located in a perimeter less than 100 kilometers from any border or 50 kilometers from any Mexican each, however, there is a legal instrument that allows citizens Foreigners acquire properties in restricted areas of Mexican territory, as is the case of Playa del Carmen, Cancun and the entire Riviera Maya, it is about the Real Estate “Fideicomiso”.

What is the  Fideicomiso?

A Real Estate Fideicomiso is a legal figure made up of three parts: The Settlor (Seller) who transfers ownership of the assets or rights, the Trustee (Financial Institution) who is the one who manages the assets in favor of a third person called the Trustee (Buyer) who acquires the property but not the ownership, being able to make use of it, remodel it, rent it or sell it, just as if it had the title to his name, since the property is already his and the financial institution has ownership of it, charging a fee for this service for a period of 50 years. The Fideicomiso or as it is known in English (Bank Trust), far from being an inconvenience offers security and protection of the acquired assets and, even more importantly, allows you to do estate planning, naming beneficiaries and contingent beneficiaries, without the need to legalize a will in Mexico.

The purchase of real estate or land through the use of the Bank Trust can be somewhat confusing as it does not allow the buyer to directly receive the title of the acquired property, however, it is completely safe and reliable, it is It is recommended to have the guidance of a real estate specialist lawyer, who knows all the processes, from the selection insurance of the property to buy, the Fideicomiso process, the choice of the most convenient Trustee bank and the Notary right to bring the transaction to a successful conclusion, at Anaya Legal Playa we are here to support and guide you in the process. Remember that the official language in Mexico is Spanish and all official documents must be in this language, including your purchase – sale contract and the Trust documents, so it is advisable if you do not speak Spanish, have a professional who speaks your language in addition to Spanish so that he can provide a faithful translation of all legal documents.

What is the function of the Notary?

Notaries in Mexico fulfill very different functions from those in other countries; they are private institutions, appointed by officially by the Executive Power and regulated by it, in such a way that they are responsible for guaranteeing the correct and legal transfer of the properties, being in charge of collecting the taxes derived from the operation of purchase – sale and declare them to the national treasury.

So is it safe for a foreigner to buy in Mexico?

Absolutely yes, Mexican laws have created control mechanisms that allow any national citizen or foreigner to acquire and enjoy their properties in the national territory and thus promote the economic growth of the country. It is always recommended to verify all the data and documents that support the legality of the possession of the properties for sale, as well as their condition before the national tax.

If the foreign already resides in Mexico and is familiar with the laws regarding the transfer of property and the institutions involved in the buying and selling process, he can carry out the process personally, making sure that Do not skip any step in the process, to avoid wasting time and money.