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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• How to Buy Phoenix Real Estate
  
• How to Save on Closing Costs
  

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Baja: North to South and South to North

A few rambling thoughts on the perspective of distance.

Those of who live close to Baja often have our perceptions f the region clouded by the media. Recent sensational articles have overstated the case for alarm in the race for headlines.

We recently came across two different articles that are very interesting and informative.

The first is a story published in the UK where the writer drove from Cabo to San Diego and the second is a Canadian writer who drove from Tijuana to Cabo.

Of interest is their perspective on the Baja stories. Very practical - avoid driving on roads at night. The biggest risk is from cattle on the roads and narrow shoulders.

The links to the two articles:

North to South - Desert and Sea Beckon in Baja California The Calgary Herald
http://www.canada.com/reginaleaderpost/news/travel/story.html?id=f0401983-bbff-4346-b461-72f5ee837e0a

South to North - Mexico: The Beauty of baja California The Telegraph - Great Britain
http://www.telegraph.co.uk/travel/main.jhtml?xml=/travel/2008/02/16/et-baja-mexico-116.xml

Have fun, be safe and enjoy! Robert Donnell

A Great Baja Development

One of the most important considerations in choosing a home in Baja is the developer.

While we are biased in this appraisal, as we represent sales for the developer, this is a project worthy of a closer look. Construction is complete and you can move in quickly and enjoy your new home.

This project is viewable at www.las-ventanas.com. There are only three units left between $369,000 to $499,000.

97% of Americans do not believe we can own in Mexico

This is an amazing statistic borne from urban legends and misunderstandings. This does mean that you have an advantage of the 97% if you are one of the 3% who can have the knowledge that you can own real estate in Baja and in all of Mexico.

Here are the facts: For over 30 years foreigners have been allowed to own property through a bank trust modeled after the U.S. family trust. This instrument known as a fideiecomiso has been deemed the equivalent of U.S. fee simple title by the California Department of Real Estate and the Securities and Exchange Commission. This mean you can sell the property, rent it, gift it and pass it on to your heirs. You own it.

You do not have to lease the land - you can own it through a bank trust.

www.beachfrontbaja.com

www.elmilagrobaja.com