What You Need to Know Before Purchasing a Home in Mexico

It is crucial you know the ins and outs of purchasing a home in Mexico since you are dealing with a property that is outside the US. There are, therefore, legal guidelines to follow when owning a home outside the country. The biggest issue with trying to investigate the prospects of owning property in this country is the language barrier.

Fortunately, you have opportunities to lessen the difficulty when purchasing a home in Mexico.

Aside from maybe a translator, or lessons in Spanish, your first step is simple:

1. Get Title Insurance From an American Company

This will undoubtedly make the process move much smoother. For starters you might notice that the country does not require you to obtain title insurance. That, however, does not mean you cannot get insurance at all. Be safe. Protect your investment regardless. And get that protection from an American company able to provide coverage across the border.

2. Use an American Escrow Company

You see the trend? The process, the paperwork, the legal channels—as long as you do it through your native country, you should not have too much difficulty moving forward at all. This is especially the case if you are already an American citizen. It is essentially a requirement.

3. Translate All Contracts into English

Getting the documents professionally translated makes it that much easier for you to interpret—as well as your attorney interpreting—all the fine print. You’ll find that quite often you can browse listings in Mexico and not have to speak to a single person as long as you have the ability to process documents, make an offer, and sign on the dotted line.

4. Pay All Your Property Taxes

If you thought American real estate law was strict on their guidelines, try living in Mexico. Owners and managers will evict you and foreclose immediately if you miss even a shred of your property taxes. Purchasing a home in Mexico requires you to be on your toes with the finances.

5. Know What a Fideicomiso Is

Yes, it’s Spanish for something. But it may be the only term you will need to know real estate-wise. A fideicomiso is a directive allowing foreigners the ability to buy prime Mexico real estate inside what is known as the “restricted zone.” This ensures a safe and secure transaction with all parties and companies involved.

Keep in mind, though, that restricted zones generally reside near the coastline. It then may not apply to everyone if you’re looking at property that’s more in the mainland.

Follow These Standards When Purchasing a Home in Mexico

All in all, it is not that much different than buying a home in the states. You need to ensure that all your forms serve your needs. Consider speaking with a bilingual real estate attorney before signing on the dotted line. This can ensure that all the translations are correct, and that you’re not overlooking anything that could be a headache or liability later on.