Manzanillo is on the verge of growing into the next must-see destination. Buying real estate in Manzanillo is getting more and more popular every year. Legally purchasing land in Mexico has led to much confusion. This is commonly seen when trying to buy land in restricted areas like near a beach or border.
As experienced real estate owners in Mexico, let us clear up a few misunderstandings about owning International Real Estate. We've dont this before, so following these instructions will make it as easy and quick as possible. The following is at least a partial guide to how you can go about buying property in Mexico's costal areas.
Some people are uneducated to the latest changes in the law, namely that the purchasing of real estate in Mexico is illegal to foreigners. Some people will swear up and down that you cannot own property in Mexico. This isn't the case anymore.
Reality is often different than the perception:
Once upon a time the government did not allow foreigners to buy land in restricted zones (within 50 km. of the ocean, border etc.) because they were worried about being taken over by foreigners. Once a law is included in the constitution of Mexico, it cannot be changed. During this period in Mexico's past, people who loved Mexico and wanted part of it for themselves, tried (sometimes with bad results) to own property.
Next came the Fideicomiso, a land trust system that allows newcomers to Mexico to own land (excluding Ejido land) in previously off limits territory (Manzanillo included). Not unlike a trust created in Canada or the USA where assets are lodged in the trust and held for the exclusive use of the beneficiary, your Mexican trust holds the property deed for the sole benefit of you, the beneficiary. Your property is then yours, and you can build as you desire. You can occupy, rent, sell, develop, lease, etc. at your discretion. It's a good idea to get a trust document for your property as you can legally say who will receive the property in the case of your passing on.
The disadvantages include the cost of creating the real estate trust (only slightly more than Mexican's pay to create a new deed when they buy) and secondly, the annual fee payable to the bank that holds the trust for you. In return for getting to enjoy all that Manzanillo has to offer, this little additional fee is no big deal.
Your real estate purchase does not include the requirement of being a Mexican resident. The laws governing property ownership are certainly different from ours, but the result is nearly the same. Maybe their system is a little inconvenient at times, but it is very comprehensive, providing protection for the buyer and seller. Your notary should abide by the proper procedures when notarizing your documents.
Hope this helps and that it answers more questions than it raises. There is lots of information on trusts in different publications and on the internet, most of which is factual. Most important for you to know now is that, other than the time needed to make a few trips to the Notary, this purchase (we sincerely hope) for you should be painless and efficient.
As experienced real estate owners in Mexico, let us clear up a few misunderstandings about owning International Real Estate. We've dont this before, so following these instructions will make it as easy and quick as possible. The following is at least a partial guide to how you can go about buying property in Mexico's costal areas.
Some people are uneducated to the latest changes in the law, namely that the purchasing of real estate in Mexico is illegal to foreigners. Some people will swear up and down that you cannot own property in Mexico. This isn't the case anymore.
Reality is often different than the perception:
Once upon a time the government did not allow foreigners to buy land in restricted zones (within 50 km. of the ocean, border etc.) because they were worried about being taken over by foreigners. Once a law is included in the constitution of Mexico, it cannot be changed. During this period in Mexico's past, people who loved Mexico and wanted part of it for themselves, tried (sometimes with bad results) to own property.
Next came the Fideicomiso, a land trust system that allows newcomers to Mexico to own land (excluding Ejido land) in previously off limits territory (Manzanillo included). Not unlike a trust created in Canada or the USA where assets are lodged in the trust and held for the exclusive use of the beneficiary, your Mexican trust holds the property deed for the sole benefit of you, the beneficiary. Your property is then yours, and you can build as you desire. You can occupy, rent, sell, develop, lease, etc. at your discretion. It's a good idea to get a trust document for your property as you can legally say who will receive the property in the case of your passing on.
The disadvantages include the cost of creating the real estate trust (only slightly more than Mexican's pay to create a new deed when they buy) and secondly, the annual fee payable to the bank that holds the trust for you. In return for getting to enjoy all that Manzanillo has to offer, this little additional fee is no big deal.
Your real estate purchase does not include the requirement of being a Mexican resident. The laws governing property ownership are certainly different from ours, but the result is nearly the same. Maybe their system is a little inconvenient at times, but it is very comprehensive, providing protection for the buyer and seller. Your notary should abide by the proper procedures when notarizing your documents.
Hope this helps and that it answers more questions than it raises. There is lots of information on trusts in different publications and on the internet, most of which is factual. Most important for you to know now is that, other than the time needed to make a few trips to the Notary, this purchase (we sincerely hope) for you should be painless and efficient.
About the Author:
Manzanillo Mexico offers a gorgeous rejuvinating one of a kind trip in the Costalegre area and the Manzanillo condos are a reliable option. You can't miss going to sojourn Manzanillo on your next Mexico family trip!
No comments:
Post a Comment