First of all, I would like to congratulate you for considering and possibly following through with such an endeavor, this is some exciting stuff. Before you can start sipping on pina colada’s on the beach, you need to have all of your finances and paperwork in order before you can successfully follow through with the transaction.
Unfortunately, there may be a little language barrier unless you happen to be fluent in Spanish, which is definitely a plus but if not then you need to make sure you’re dealing with American companies that will ensure you are taking all of the precautionary steps before proceeding with any other commitments that the Mexico law reinforces.
1. Get Title Insurance From American Company:
Even though Mexico claims that you don’t necessarily need title insurance, it’s not entirely accurate. It doesn’t hurt to get some anyways so that you’re protecting your investment so make sure you’re contacting many American Title Insurances that are willing to provide coverage across the border. There are various companies available that are ready to extend their help and coverage so under no circumstance have these orders lined up before getting too serious about purchasing.
2. Use American Escrow Company:
Similar to the title insurance company, make sure you’re using an American Escrow Company because since you are an American citizen
3. Get All Contracts Translated To English:
Many things can be lost in translation, and a mortgage contract is not one of the things that should be. Make sure you’re getting all original Spanish contracts and documents professionally translated so that you’re able to understand the fine print. Even if you fully understand the Spanish written contracts, make sure you have copies of all of them in English so all of the American companies you are working with can have them on file as well.
It’s important to make sure you can have multiple people look over these documents and contracts to ensure that you understand all of the requirements and restrictions when moving forward.
4. Pay All Property Taxes:
Mexico is very strict when it comes to paying property taxes and will not hesitate to evict you and to foreclose any of your properties. There have been many instances when the law overrules any assumptions that Americans had thought about taxes, leaving them in a huge ordeal when trying to have possession of their property back.
Repossession and any other law regulating circumstances can be a severe issue when purchasing property in Mexico so make sure you’re keeping up with the deadlines and payments as much as possible.
5. Understand What A Fideicomiso Is:
A fideicomiso primary purpose is to allow foreigners to buy prime Mexico real estate inside the “restricted zone,” and ensure a safe and secure transaction with all of the other companies that are involved. Restricted zones are near the coastline, so this may not apply to everyone. It is credible for 50 years and can be renewed at any time.
Check out the video below for more on what to do when buying a house in Mexico!