How to Buy Real Estate in Baja

How to Buy Real Estate in Baja California, Mexico

from wikiHow - The How to Manual That You Can Edit

Tens of thousands of U.S. residents own land in Baja California. Billions of dollars are being invested and enjoyed across the border. While this article focuses on Baja - these steps should apply to all of Mexico.

Steps

1. Understand that Mexico is a different country with laws that are similar to that of the USA with many major exceptions. One significant difference is that foreigners may not buy land a certain distance from the borders an coasts - except through a bank trust known as a fideicomiso (fee-day-co-miso). The fideicomiso is a proven solution to the restriction of foreign ownership that is over 30 years old. Simply put, the fideicomiso is a bank trust with a fifty-year term renewable in perpetuity. Through the bank trust foreigners can control a piece of property, sell it, will it, rent it or lease similar to fee-simple title in the USA. In fact, the California Department of Real Estate and other agencies have ruled it to be the equivalent of fee-simple title.
   
2. Work only with a proven real estate agent or developer if you are buying new construction.
   
3. Do not give anyone a deposit unless you are assured that title insurance is available from a U.S. title insurance company like Stewart Title.
   
4. Call their offices and verify this information as part of your due diligence process.
   
5. Do not get swept up by the emotion of the moment - ask questions and trust your gut. If a deal sounds too good to be true, it probably is.
   
6. Write deposit checks to the name of a third-party escrow service based in the USA,
   
7. Make sure the building has the amenities you want in a Mexican home - and make sure that what is being offered is economically viable. A small project of 50 homes will probably not be able to support services like a restaurant or concierge.
   
8. Ask questions. Some good questions to ask the seller - and yourself include:
   
   • Is the building construction of good quality?
     
   • Does the building have adequate fire safety systems?
     
   • Do you love it?
     
   
   

Tips

• Do not sign anything you do not really understand.
  
• English translations are not valid in Mexican courts - only Spanish is.
  
• Consult with a local attorney if you are unsure.
  
• Review tax implications with your U.S. tax adviser.
  
• Understand closing costs - they are higher than the US.
  
• Property taxes in Mexico are very low.
  

Warnings

• Do not check your brain at the border!
  
• Have fun!
  
• Enjoy the process!
  

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