Puerto Escondido real estate guide with Puerto Escondido homes, land and business opportunities for sale.
All Mexico real estate and business transactions are processed by a local Notario Publico. A Mexico Notario Publico is a licensed attorney and among a select/privileged few that are licensed by the Mexico government to process and record property and business transactions, collect taxes and arbitrate disputes, among other permitted services.
The Mexican Constitution prohibits direct ownership by foreigners of real estate within 100 kilometers (about 62 miles) of any border, and within 50 kilometers (about 31 miles) of any coastline. In order to permit foreign investment in these areas, the Mexican government has created a trust mechanism (contrato de fideicomiso) in which a bank has title to the property, but a trust beneficiary enjoys the benefits of ownership. The Bank Trust Agreement (contrato de fideicomiso) allows for renewable long term leases that may be sold or enjoyed by your heirs.
A foreigner may be the sole and exclusive stockholder of a Mexican corporation which may hold fee simple title to non-residential property in the prohibited zone. There is a broad definition for "non-residential" property.
It is highly
recommended that you seek the advice of licensed Mexico attorney when
considering the many aspects of a Mexico real estate or business investment. It always helps to request some evidence that you are dealing with the land/property owner. A buyer should always ask the seller for a copy of the escritura - a Mexico land title - for possible evidence of ownership. While easy enough to forge, an inspection of the original escritura - before being copied for your own records - and inspection of owner identification (from acceptable government source) is always recommended.
A buyer should inspect a copy of the property lien certificate (certificado de libertad de gravamen). The lien certificate should indicate the owner of record, size, property classification, the legal description and whether there are any liens or encumbrances filed of record against the property. Prior to closing, there should always be a certificate of no tax liability (certificado de no aduedo) from the local taxing authority.
Heads Up: Mexico Title Insurance is now available from several reputable international title insurance companies. Caution: The Mexico Notario is not liable for defects in title and the Notario is certainly not liable for lack of disclosure from the seller.
Caution: Mexican law recognizes squatters' rights, and homeowners can spend thousands of dollars in legal fees and years of frustration in trying to remove squatters who occupy or rent their property. Always inspect the property and be certain that your property is not occupied by a Mexican citizen in any manner whatsoever. Anyone who occupies the property on behalf of the owner should be totally removed/gone from the property prior to closing. Warning: A Mexico citizen may simply refuse to pay rent and continue to occupy your rental property for a long, long time - maybe years.
American property owners in Mexico should exercise caution when hiring employees to serve in their homes or on vessels moored in Mexico. Several American property owners have faced lengthy lawsuits for failure to comply with Mexican labor laws regarding severance pay and social security benefits.
