Expert Advice: What You Need To Know When Buying Real Estate Outside Mexico's Restricted Zone
In this blog, we have talked numerous times about the process and impact of purchasing real estate within the Restricted Zone in Mexico.
For reference here are some cool posts about that:
- How To Purchase Real Estate In Mexico: Consice Key Points
- What’s a Restricted Zone Trust (Fideicomiso de Zona Restringida)?
- Top 8 risks when buying Real Estate in Mexico
But what about real estate outside the Restricted Zone?
Mexico offers an abundance of retirement communities for foreigners in stunning locations such as San Miguel de Allende, Taxco, Lake Chapala, Puebla, Mexico City, Guadalajara, Cuernavaca, and many more places that are not within the Restricted Zone.
One of the main differences is that outside the Restricted Zone, any foreigner can directly own property, eliminating the need for a Fideicomiso or Corporation.
Now, let’s dive into the steps that can turn your dreams of Mexican homeownership into a vibrant reality.
Scout For Your Dream Home
The initial step is crucial, as you will require a permit (“Permit”) from the Secretary of Foreign Affairs (“SRE”) to acquire the property. This Permit will be exclusively for that particular real estate. Obtaining the Permit typically takes a minimum of two months, although in extremely rare cases, it may take up to six months.
To protect your interests and ensure the property you’re interested in doesn’t get snatched by someone else, it’s advisable to sign a promissory purchase contract before initiating the paperwork.
Complete The Paperwork
The Permit can only be obtained directly from the SRE office in Mexico City. If you are unable to visit in person, we recommend hiring a lawyer who can act on your behalf with a Power of Attorney. Of course, ROE Latam can assist you with this.
You will need to provide property documents, identification, and your migratory form to initiate the process. Our attorneys will work closely with you to ensure all the required paperwork is prepared. Once the documents are submitted, the lawyer will handle the necessary forms to request the Permit.
If you are currently not in Mexico, we will utilize courier services to allow you to sign the originals wherever you are. Once signed, you can send them back to us for filing.
Exercise A Bit Of Patience
After the documents are filed, the SRE will issue a confirmation letter with a tracking number. The SRE then takes up to six months to issue the Permit. Therefore, as mentioned earlier, it is wise to have a promissory purchase agreement executed to prevent the seller from attempting to sell the property to someone else. Again, ROE Latam has vast experience in these transactions, and we can help you avoid any issues by drafting a clear dual-language (English and Spanish) promissory purchase agreement to provide you with peace of mind.
Finalize The Purchase
Although time may seem to move slowly during this waiting period, rest assured that you will eventually receive the Permit and become a proud homeowner in Mexico. Despite the time-consuming nature of the process, there are significant advantages to holding the property title directly. For instance, you will only need to pay the annual property taxes, avoiding the yearly fees associated with a Bank Trust or Corporation taxes. Additionally, many individuals simply prefer the sense of ownership that comes with holding the property title in their name.
With determination and a dash of patience, your dream of owning a home in Mexico will come true. Embrace the journey, and before you know it, you’ll relish the rewards of being a homeowner in this enchanting country.
Please send us an email to online@roelatam.com if you need clarification or whish us to advice you through your real estate purchase process, we will be glad to help.
