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Purchase Process

Yes! You can own real estate in Mexico. The land titles system is as strong as Canada or the USA. Be aware though: there are several types of property ownership and foreigners should only purchase properties that are deeded properties.

The process for purchasing a property in Mexico can be very straightforward. Similar to Canada or the USA, you would make an offer, negotiate and sign contracts, make a deposit, and then close on the property and take possession.

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Differences:

  • Prices can sometimes be very negotiable, ask your Buyers Agent for a recommendation on what to offer, based on what similar properties have sold in that area recently.
  • The deposits are typically 10% to 30% of the purchase price.
  • Properties in Mexico are usually paid for in “cash” (wire transfer) – very few have mortgages. Click here for more in on financing options in Mexico.
  • Properties within 100 km’s of the borders and 50 km’s of the beaches must use a real estate Trust if being purchased by non-Mexicans. What does this mean? Your name goes on the deed, a Trust is created with you as the beneficiary that holds the title to the property. This is a safe, reliable method of ownership that over a million Canadians and Americans have been using for decades to own property in Mexico. Real estate Trusts are used by the wealthy in Canada and the USA (such as Steve Jobs) as a wealth management tool. Some Mexican nationals also own property with a Trust, as it has many benefits. It bypasses probate, there are no death taxes, and it is creditor protected.

Note: this overview is provided for informational purposes only. Global Real Estate Vallarta is not providing financial advice, accounting or legal advice but we certainly can put you in touch with these certified professionals so you can hear it from the horses’ mouth and discuss your personal situation. For additional information, please contact us.

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