PURCHASING PROPERTY IN MEXICO AS A FOREIGNER

In 1972, a Constitutional Amendment known as the Foreign Investment Law was established to allow non Mexicans to acquire coastal and border property through a trust, called a “Fideicomiso,” in conjunction with a Mexican bank. This trust assures the foreign buyer of all rights and privileges of ownership, and is needed to own properties which fall into the “Restricted Zone”. The “Restricted Zone” includes any property located within 50 km (32 miles) of any coastline, or 100-km (64 miles) of any border. As of 1993, the New Foreign Investment Law dictates that the Trust be established for a term of 50 years and extended in 50 year periods.

The Mexican government established the Trust Agreement as a way of protecting foreigners who own property in Mexico. After the buyer and seller have prepared the proper documentation to obtain a bank trust, the bank applies for a trust permit with the Ministry of Foreign Affairs in Mexico City (this takes 4 to 6 weeks), then sends it to a Notario Publico (Public Notary). The “Notario Publico” is a highly educated attorney (Abogado) who is appointed to the position by the governor of the Mexican State in which he practices. The Public Notary draws up the Trust Agreement, obtaining the necessary documents (Bank Appraisal, Certificate of Non Physical Liens & Non Encumbrance), calculates the taxes due, and informs the bank when the Trust Agreement is ready to be signed (stating the final closing costs). The bank informs the seller and buyer so that they can sign the Trust Agreement at the Notary’s office. The Notary will inform the buyer of the amount necessary to cover closing costs. All parties involved, seller, buyer and bank, sign the Trust Agreement. The Notary records the Trust Agreement with the Public Registry of Property and then gives it to the bank. The bank in turn records the Trust Agreement with the National Registry of Foreign Investments. The Notary then sends a Certified Copy of the Trust to the buyer.

The bank, known as the “Trustee”, holds the Deed for the purchaser of the property, known as the “Beneficiary”. This property is not part of the Bank’s assets and cannot be subject to a lien, or attached to bank obligations. The Beneficiary has all the ownership rights to the property and may sell, lease, mortgage, pass to heirs, or do any other legal act with the property. The Trust is not a lease. The difference between a lease and a trust is that there is no equity in a lease, whereas a trust is fully maintained.

If property is purchased and currently held in a trust, a new 50-year period can be established or the existing trust may be assigned. Trusts are renewable at any time by simple application. It was never the intent that these properties pass back to the Government at the end of the trust period, which has been a common misconception and fear of foreign purchasers. In fact, at the end of the 50-year period, the Beneficiary has an additional 10 years to renew the Trust.

Single Story For Sale in Playa Encanto, East Beach


VIEWS GALORE OF THE SEA OF CORTES

•  261 sq. m., 2 bath, 3 bdrm single story$340,000 USD. VILLA ON THE BEACH
MLS® #17-252  

– On the beach with perfect views of the Sea of Cortes. Full ownership with transfer of bank trust. 2 guest bedrooms, 1 guest bath, 1 master bedroom with master bath. Water pump and water heater located in garage. Laundry area in enclosed closet in hallway. Well maintained. HOA’s cover exterior and roofing, garage doors. Fed Zone fees paid with your HOA dues. Keys are waiting for you!!

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FRENCHY’S

Frenchy.s restaurant /bar is a new build in 2014. Frenchys is a 160 seat busy restaurant sitting on a corner lot on a super high traffic intersection across from Sandy beach. Frenchy.s has a vista of the sea on both its beautifully crafted palapa patios .both patios are fabulous for a nice dinner. restaurant boast a fully equipped new stainless steel kitchen to make all of our amazing menu items. While diners can kick back and watch their favorite sports team on one ☝️of the many flat screens, surround sound for any of the genres. It’s fully equipped bar can be open until 3 am! For your party pleasure! Chef Luis is a top notch chef and his awesome abilities make Frenchys a top dinning destination! Frenchy’s bar and kitchen staff is top and bilinqual.

 

VISIT; WWW.ROCKYPOINTREALESTATEGIRL.COM

Single Story For Sale in Cholla Bay, Puerto Penasco/Rocky Point


Beautiful tile and Boveda

•  1,200 sq. ft., 2 bath, 2 bdrm single story$129,900 USD. Bay Views

– 2bd/2bt home, boveda ceiling, Margarita deck, views of the bay and mountains. Furnished as is. Nice tile thru out. The reasons to buy in Cholla Bay – Quiet, great neighbors, bay, beach and ocean with in walking distance, fishing, jet skiing, sailing, Old Boys Social Club, Cholla Bay Sportsman club, monthly events and the HOA’s are only $200.00 ANNUALLY. 24/7 police.

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Single Story For Sale in Nueva Esperanza, In Town

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Priced to sell with Bank Trust

•  single story$6,999 USD. Views of the Mountains

– Large lot, great area for a new home or even trailer. Views of the mountains and in the distance Sandy Beach resorts.

Lote grande, gran area para una nueva casa o un trailer. Vistas de las montañas y a la distancia los complejos del Sandy Beach.

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Lot / Land For Sale in Nueva Esperanza, In Town

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Priced to Sell with Bank Trust

•  lot / land$6,999 USD. Views of the Mountains

– Large lot, great area for a new home or even trailer. Views of the mountains and in the distance Sandy Beach resorts.

Lote grande, gran area para una nueva casa o un trailer. Vistas de las montañas y a la distancia los complejos del Sandy Beach.

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Single Story For Sale in Las Conchas, Puerto Penasco/Rocky Point

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EASY BUILD YOUR DREAM HOME

•  single story$18,000 USD. BANK TRUST AND LLC

– Lot priced to sell. Ground flat, making an easy build. Great location, offf them the Las conchas Main Road. Neighborhood with beautiful homes. Peek a boo views of the Sea. Owners BANK TRUST AND LLC IN PLACE

Lote con buen precio.Lote plano haciendolo facil para construir. Vistas del Mar. Dueños muy motivados.

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