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Owning property in Yucatan is easy, and once you have found the ideal property for you, we will help you go through the necessary steps to own it. With accurate information and by hiring the right advisors, you can safely buy your real estate in Yucatan in as little as 60 days.
We have broken this process down into the following primary steps that must be carried out.
1. MAKE AN OFFER
The first step is to make an offer to the seller. This is done in written form in a contract known as a Buy/Sell promise. In Mexico there are two ways in which this is done when foreigners are involved. The most common is where both the buyer and the seller sign a simple agreement, where both agree to the specifics of the transaction such as the price, closing date, etc, and the buyer commits to deposit 10% of the offer price into an earnest money account at the time of signing the document (A quick title search done by a lawyer is needed before any money transfer).
The second way, which is less common, but the traditional way in which offers are made among Mexicans is when the seller requires that the deposit goes directly to him/her. A document with the specifics of the transaction is signed in the presence of a notary public for the security of both parties. The notary is the highest legal authority in these cases and previously checks that there are no obstacles for the seller to sell the property.
2. HIRE A LAWYER FOR LEGAL PROCEDURES
It is necessary to hire a lawyer to complete the purchase process. The lawyer will be a third party working for you acting in your best interest until completion of the purchase. He/She will be able to review conditions, identify any problems, give you advice, formalize the transaction etc.
When hiring a lawyer, you should check that they are actually licensed to practice law in Mexico. Lawyers registered in other countries are not able to practice law in Mexico unless they have fulfilled all of the local prerequisites.
Note: If you need help finding and hiring a lawyer we are constantly working with well reputable attorneys with established names, and with pleasure we can recommend one to you.
The signing of contracts or "closing" the transaction must happen in front of a Notary Public. Just before this is done, the remaining amount needs to be deposited. With the signing and certification of the contract, the deposit is transferred to the seller and the property to the buyer. It is common practice that the buyer pays the closing costs involved including acquisition tax, notary fees and other expenses. This is about a 5% - 6% of the appraised value of the property plus the cost of establishing the fideicomiso or corporation. Normally, the appraised value is lower than the actual sales price..
Note: In the case that you cannot come to Yucatan during the time of your closing, you could simply grant us the power of attorney to sign all documents for you, and collect them once you arrive.
BANK TRUST (FIDEICOMISO)
The Bank Trust (Fideicomiso) is a legal instrument established by the Mexican Government which allows non-mexicans to acquire properties in the area known as the "restricted Zone"(the boundary of 31 Miles from the coast and 62 Miles from the border.
This legal mechanism is established by a bank and allows foreign investors to carry out the purchase and sale of properties and guarantees their investment by granting them the rights and obligations of a Mexican citizen. The beneficiary of the Fideicomiso has the right to use, enjoy, rent, inherit, and sell the property to any buyer. The Fideicomiso is established for a period of 50 years which is renewable at any moment with a simple request. The approximate cost for establishing the Fideicomiso is $2,500 USD and the annual maintenance fee which begins at the second year of ownership is about $500 USD. These amounts depend on the value of the property and the selected bank.
The set up of the Fideicomiso is an easy and routine process which takes about four weeks to complete.
Note: the majority of the properties that appear on our website, are located in the "restricted/zone".
Because the Fideicomiso limits non-Mexicans to purchase property up to 6,500 sq ft, it will be necessary for you to set-up a Mexican corporation if you are interested in something bigger than that.
Also in some cases it is more convenient to purchase a property through a corporation such as in the case that it will be used for business purposes. It is also a good idea to create a corporation if you are thinking about having several properties in order to avoid paying multiple fideicomiso\\'s. In this case it is recommended that you consult a lawyer and accountant to determine what is the best option for you.
To form a corporation at least two partners are needed and they are not required to be Mexican. The cost of forming the corporation is approximately $2,000 USD. An accountant is also needed in order to present monthly declarations to the tax authorities. The cost for the accountant\\'s fees depends on the amount of activity of the corporation, and commonly falls between $50-100 USD/month.
Yes, property financing is available for foreigners with certain private credit institutions who are dedicated to providing financing to foreigners. And also Scotiabank recently opened up to granting credit to Americans and Canadians for up to 15 years and for 75% of the value of the property. If you would like to explore the opportunity to finance your property we will gladly orient you in the right direction.
Today have 6 properties
" It was our good fortune to connect with Yucatan Premier Real Estate Company when in the process of selling our home in north Merida. We were immediately impressed with t..." (cont.) Read full testimonial