Buyers Protection in Mexico

 

Purchasing property in Mexico can be a an exciting experiences and a very good investment. Many Canadians, Americans and other foreigners enjoy the superior value they receive and the buying power they have in Mexico as compared to their home countries.

Foreigners purchasing property in Mexico is very safe and completed under a Bank Trust where the beneficiary (buyer) has all the rights of ownership: the right to buy, sell, lease, use, bequeath, improve, transfer, and encumber. The Bank Trust is established by the government and gives foreigners the same rights of ownership as Mexican citizens. The only difference is that they never receive the actual fee simple title. It is held in trust for them by a bank.

Mexican law also protects beneficiaries of the Bank Trust from any problems that the bank may have. A Bank Trust can never be seized to satisfy judgments against the bank. Mexican law, in 1994, established that Bank Trust deeds are to be 50-year terms and are renewable indefinitely in 50-year increments.

When first established, the term of a Bank Trust was for 30 years only and was made renewable for another 30 years. In 1993 the term was extended to 50 years, and renewable for another 50 years.


Mexican notaries, more commonly know as Notaria Publica, are government appointed attorneys specifically trained to handle the legalities of property transfers in Mexico. Notaries are the only ones legally able to transfer title and ensure the title is clear both at a local Public Land Registry level and to the national Public Land Registry level.

Notaries make sure there are no liens that exist against the property and perform title searches similar to American title companies guaranteeing your property is unencumbered.

Noratia Publica in are also government appointed taxes collectors. They are responsible for the collection of any Taxes due on the property just as Buyers Property Acquisition Tax or Sellers Capital Gains Tax.

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