OWNERSHIP IN THE SUN
You may have heard stories about how hard it is for foreigners to buy real estate in Mexico—all very stiffly presented by people who claim to know the rules. But the facts are, while at one time it really was tough for American citizens to get our hands on property there, it's a whole lot easier now, thanks to a series of laws passed by the Mexican government to promote foreign investments.
Still, some myths persist. Like one that says Americans can't really own land south of the border. That's wrong, we can. In most of Mexico, it's done through what's called a “fee simple” title – the same type as in the United States.
In “restricted” zones (land within 31 miles of the ocean and 62 miles from the border), a 1971 law gave us the right to buy residential property through a bank trust called a “Fideicomiso.” The latter gives foreigners virtually the same ownership rights as enjoyed by Mexican citizens.
Also overheard: Americans can't own real estate unless they have a Mexican partner. That was once on the books, too–until it was chucked out by a law passed in 1993.
Yet another old wives tale cautions that Americans can't own property on Mexican beaches. Actually, that one's true. But Mexicans can't own land there either. Nor can anyone else. All beach property within 60 feet of the mean high tide line is public land.
Advice from a pro
While much of the red tape has been cut away, buyers will find it's still wise to enlist the help of a professional real estate agent skilled in brokering properties in Mexico.
One such pro is Peggy Worthington (peggyworthington@msn.com), founder and CEO of Denver-based Global Ventures, LLC. A 22-year veteran of real estate sales and marketing in this country, she also represents several major residential projects in Mexico and other Latin American countries, plus holds the distinction of being a Certified International Property Specialist, a designation by the National Association of Realtors.
“Think of your agent as a tour guide who's going to lead you through all the twists and turns of the Mexican buying process, including the workings of the Fideicomiso and the rules on titles, insurance and the like,” says Worthington. “You'll also get advice from your agent – many of whom work with a team of legal advisors and tax consultants – on financing your property and on the all-important role of “notarios” (specially trained Mexican lawyers, not to be confused with notary publics) in the closing process.”
With today's economy in the pits, is this a good time to buy a retirement place or a second home in Mexico? “I know it's a worn-out way to put it,” Worthington says, “but what buyers have to keep in mind is that when the economy gets better, housing prices will go through the roof. Right now it's a buyers' market, with 'For Sale' signs going up on thousands and thousands of new residential units on the Riviera and in other developments across Mexico.” Worthington compares today's buying opportunities south of the border to what it was like to have gotten in on the ground floor of places like Miami and Malibu 80 years ago.