As experienced real estate owners in Mexico, let us clear up a few misunderstandings about owning International Real Estate. Having been down this road before, we will make this process as seamless and pleasant as possible. As experienced land owners in Mexico, the following is a partial explanation of how to buy property in the coastal zones.
Many people are still under the impression that the ownership of property in Mexico is not available to foreigners. Some people will swear up and down that you cannot own property in Mexico. What usually happens is that what the masses believe is totally untrue.
Reality is often different than the perception:
Once upon a time the government did not allow foreigners to buy land in restricted zones (within 50 km. of the ocean, border etc.) because they were worried about being taken over by foreigners. This system was included in the constitution and as a result can't be changed. During these times, if you wanted to own real estate in Mexico, it was a risky venture at best.
Next came the Fideicomiso, a land trust system that allows newcomers to Mexico to own land (excluding Ejido land) in previously off limits territory (Manzanillo included). Not unlike a trust created in Canada or the USA where assets are lodged in the trust and held for the exclusive use of the beneficiary, your Mexican trust holds the property deed for the sole benefit of you, the beneficiary. Your property is then yours, and you can build as you desire. You can occupy, rent, sell, develop, lease, etc. at your discretion. It's a good idea to get a trust document for your property as you can legally say who will receive the property in the case of your passing on.
There are a couple disadvantages to getting land this way including a slightly higher price for the land trust and the yearly fee that you have to pay to the bank holding your documents. I look at this fee (tax on us) that Mexican's do not have to pay, as a part of the price we pay to enjoy all that Manzanillo has to offer.
Your real estate purchase does not include the requirement of being a Mexican resident. The laws governing property ownership are certainly different from ours, but the result is nearly the same. Maybe their system is a little inconvenient at times, but it is very comprehensive, providing protection for the buyer and seller. Your notary should abide by the proper procedures when notarizing your documents.
Hope this helps and that it answers more questions than it raises. There is a wealth of info and misinfo on trusts in the internet. Be sure to check your facts. What you should take away from this is it's not hard to own real estate in Mexico. Other than some errands to the notary, getting a Fideicomiso is not challenging and no sweat.
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