FAQ’s
These FAQs provide a comprehensive guide for foreign real estate buyers in Riviera Maya and outline Peninsulawyers’ expertise in handling legal disputes.
Foreign buyers should first engage with a reputable real estate agent and a legal representative. Then, they need to obtain a permit from the Mexican Secretary of Foreign Affairs, set up a fideicomiso (bank trust), or establish a Mexican corporation if the property is in the Restricted Zone. Conducting a thorough property inspection and ensuring clear title is also crucial. Finally, the purchase should be formalized through a notary public.
Yes, foreigners have the same ownership rights as Mexican citizens, especially if the property is outside the Restricted Zone. In the Restricted Zone, which includes areas within 100 kilometers of the border or 50 kilometers from the coast, ownership is typically held in a bank trust (fideicomiso), but the foreign buyer retains all practical ownership rights.
Yes, it’s possible to purchase property remotely. However, you’ll need to appoint a legal representative in Mexico to handle the transactions on your behalf, which includes signing documents and making necessary payments. This process requires granting a power of attorney to your representative.
A fideicomiso is a bank trust where the bank holds the title to the property, but the buyer has all rights to use, rent, modify, or sell the property. This system is safe and designed to protect foreign buyers, ensuring they have the same rights as if they owned the property directly.
Conduct a complete due diligence process. This includes verifying the property’s title, ensuring it’s free of liens, confirming the seller’s ownership rights, and checking for any outstanding debts or obligations attached to the property. A legal representative can assist in these checks.
If a developer or seller fails to meet contractual obligations, it’s advisable to first seek a resolution through direct negotiation. If this fails, legal action can be taken, including filing a complaint with PROFECO (the Federal Consumer Protection Agency) for conciliation.
Peninsulawyers specializes in representing foreign buyers in disputes with developers. This includes negotiation, preparation of legal documentation, representation in conciliation procedures before PROFECO, and, if necessary, litigation to enforce contract terms and protect your rights
PROFECO, Mexico’s consumer protection agency, helps in resolving disputes between consumers and service providers, including real estate transactions. They offer conciliation services where they mediate between the buyer and the developer/seller to reach an amicable resolution.
Generally, there are no legal restrictions on renting out your property. However, it’s important to comply with local regulations, pay applicable taxes, and if the property is held in a fideicomiso, ensure the trust agreement permits rentals
Buyers need to be aware of the acquisition tax, notary fees, property registration fees, and the cost of setting up a fideicomiso if applicable. Additionally, ongoing costs include annual trust fees for the fideicomiso and property taxes.
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