Buying a beach house in Mexico is the dream of many Americans and Canadians due to the lifestyle Mexican’s coasts offer, including pleasant weather, exquisite food, and endless outdoor activities like surfing, sport fishing, and the always tempting option of enjoying the sun and the sound of the waves.
Many foreigners are living the dream, and accomplishing it is much easier than you think. Keep reading to learn how!
Find a suitable location
This property quest starts just like any other by finding the perfect location. At this stage, consider whether you are staying in this new place for a long time or if you picture yourself traveling often.
In the first scenario, you should focus on finding a community that suits your lifestyle. On the other hand, if you need constantly go back and forth, it would be best to find an accessible location near an airport. This way, you can avoid the hassle of long commutes and make getting to your destination in a breeze.
Also, if you’re looking to invest in real estate, you should focus on areas with strong tourism to guarantee a return on your investment by having more people around renting and buying.
Get a good agent
As a foreigner, it’s always a good idea to get some local expertise on your side. A real estate agent can be valuable in helping you find options that fit your specific criteria.
Once you’ve found some real estate alternatives, like an incredible oceanfront lot or an amazing home with a stunning ocean view, the next step is to analyze them, evaluate their potential, and see if they fit into your budget.
This is where working with a real estate agent can come in handy, as they will help you understand each option’s details. This way, it will be much easier to determine the right decision, especially when you have to decide between buying a brand new house or opting for one already built and move-in-ready.
If you are interested in buying an already-built home, you’ll want to work with an excellent agent who can provide virtual or in-person tours of the house and, most importantly, help you to negotiate the best price.
Get a lawyer and make an offer
After your agent has finalized the initial offer, it’s time to get a specialized real estate lawyer in Mexico to represent your best interests and manage the legal details of the deal.
All the official documents will be in Spanish since this is the official language in Mexico, so be sure your lawyer can translate and communicate every legal issue appropriately. Also, you can complete the rest of the purchase process remotely by giving your lawyer Power of Attorney.
Once the negotiations are over, it will be time to formalize the deal through a contract. Consider that the purchase is not official at this stage, even though an agreement has been signed.
You’ll need to put down 5% to 10% of the sale price to lock in your offer. You can send your deposits via wire transfer, and we recommend you to investigate the best way to make the transfer without being overcharged.
The money goes towards the final cost of the sale, but the seller will keep it if you back out for a reason not covered by the contract. Once the money is deposited, you’ll sign a purchase agreement to complete an official offer, so be cautious at this stage.
The final steps to close the deal
To face this last phase of the journey, if you’re buying a property within 64 miles of a national border, or 32 miles from the coast, you’ll need to buy it through a bank trust known in Mexico as a fideicomiso.
Although establishing a fideicomiso means the bank trust will be the legal owner of the property, you (the buyer) will have all the rights to sell, lease, or pass your property onto your beneficiaries.
With a validity of fifty years, this bank trust will save you the hassle of renewing for quite some time. Even better, if the home you’re buying is already in a fideicomiso, you may take ownership of the existing one saving time and money. Just make sure you know how many years are left before renewing.
Getting your home keys
Closing a deal in Mexico always requires a notary agent, and a public notary in Mexico differs from the role of one in other countries. Here is a certified attorney who supervises the deal as a neutral third party representing the state.
The notary will do a title investigation to ensure the vendor has the authority to sell and there are no liens or permit issues. They’ll also prepare the paperwork, process the entire transaction, register the new title, and collect taxes and fees.
After completing the entire legal process, the last step is registering your purchase with Mexico’s government to make it official. This final phase takes about three months after closing the deal, but don’t worry! You can get your keys, move in or start renting the house while waiting.
Now you are a new property owner in Mexico, and it was easier than you expected, don’t you think?
Now that you have learned the process, will you dare to live in your dream beach house in Mexico? Tell me about it in the comments box!
