Dispelling the enduring myths surrounding property ownership for Americans and Canadians in Mexico, Dwell 365 PV is here to clarify the possibilities of owning a condo or house in this captivating country.

While Mexican citizens have the freedom to purchase properties nationwide, foreign buyers encounter additional requirements when acquiring real estate in sought-after areas. Properties within 50 km of the coast or 100 km from a border necessitate the creation of a fideicomiso, a trust established through a Mexican bank.

To navigate the process smoothly, international buyers are advised to collaborate with a knowledgeable notary who can guide them through the paperwork and documentation required for the fideicomiso. This renewable 50-year trust incurs an average annual cost of $600 and is typically arranged during the closing and title stages of the sale.

It’s important to note that all real estate transactions in Mexico involve a Notario Público, who carries significantly more expertise and responsibility than their U.S. counterparts, ensuring a secure and legally sound transaction.

For foreigners seeking property in Mexico’s “restricted zone,” the general process typically entails:

• Discover your ideal property, whether it be a house or condo, and submit an offer.
• Sign the initial sales agreement, written in Spanish by a Mexican lawyer, with a 5%-10% deposit for pre-construction or a minimum of 40% for existing properties.
• Transfer your deposit and subsequent payments as outlined in the sales contract.
• Once the property’s full balance is paid, the seller initiates the fideicomiso application with your bank. In many cases, you can take possession of the property at this stage.
• Fulfill closing costs, taxes, and fees, which average around 6% in Jalisco and Nayarit. Utilize our closing costs calculator for an accurate estimate.
• Within three months of the closing date