Step 1 – Set up a Real Estate Trust
This step is necessary because there is actually a law written into the Mexican Constitution which prohibits the sale of real estate to foreigners, when that real estate is located within 62 miles of any Mexican border, or within 31 miles of any stretch of coastline. To get around this stipulation, the government has allowed ‘trusts’ to be formed, wherein the trust actually holds the property deed, and the buyer is the beneficiary of that trust, with full control over any renting, selling, or improvements desired. This costs about $500 USD, and satisfies the government issue while also allowing the buyer total control over the property.
Step 2 – Obtain Title Insurance
As in the U.S., it is always worthwhile to have a title search conducted, in order to make sure that there are no other possible claims against the property. Should anything like that occur, the insurance guarantees that the search company will be your full advocate in any court proceeding, so that there is no possibility of you incurring a loss on the transaction.
Step 3 – Secure Financing
If you do need financing to carry out the purchase transaction, there are many lending institutions within Mexico which would be willing to work with you, at favorable rates. In many cases, there are even incentives offered for dealing with specific lenders, because they want to encourage more real estate business. Some American lenders are also becoming involved with real estate financing in Mexico, so there are even more options available to you.
Step 4 – File Immigration Papers
This is only necessary if you intend to live in Mexico year-round, or at least for more than six months. If you intend to use your property as a vacation property, or on some other kind of intermittent basis, it will not be necessary to secure immigration papers. The FM3 papers grant you status as a non-immigrant resident, and they will need to be renewed periodically. After five years, you would then become eligible to obtain FM2 papers, which alter your situation to that of an immigrant with permanent residential status.
Information about exciting homes in Rosarito, Mexico
To learn more about the beautiful and luxurious villas and condos for sale in the beachfront development at Rosarito, Mexico, contact La Jolla Excellence by email, by phone, or by filling out the contact form on the La Jolla website. The La Jolla project is the 7th fantastic development undertaken by Desarrolladora de Las Californias S.A. de C.V. (DECASA), which is a company that has been creating homes of excellence in the Rosarito area for more than three decades. DECASA is famed throughout the region as the most experienced and most reputable developer of quality luxury residences.