Buying or Renting Property in Mexico

Owning Property in Mexico

To buy property, there are two ways to ensure ownership. The first choice is to get a Mexican bank trust (fideicomiso). Held by the bank, the transfer of title ownership is easily accomplished with a Mexican notary public.

The other alternative is to get the title in your own name. This will require you to get a deed (escritura) that is prepared by a Mexican notary public or your purchase will not be valid. It is important to note that notaries in Mexico have law degrees and are approved by the governor to serve a specific location.

Talking to the Notary Public

Once you have a copy of the deed to the property you wish to purchase, take it to the notary public to guarantee its authenticity and assure that it is not communal agricultural property (which can only be used, not owned). If the property is in development, make sure your seller has the proper permits needed to build on the land in question.

When you talk to the notary, be sure you have the following items:

• Proof of identity: birth certificate, passport or driver license, marriage certificate (if applicable)
• A copy of the deed to the property
• Copies of the latest bills paid on the property (utilities, tax receipts etc.)

After the notary evaluates your real estate transaction, the capital gains tax (normally paid by the seller) and fees are paid. The paperwork is then submitted to the Public Registry of Properties to be registered. You can expect everything to be finalized in about 2 weeks.

How to Rent Property in Mexico

If you’re deciding whether buying or renting property in Mexico is for you, think about the amount of time you will stay in the country. Renting is a good way to see what it’s like before making a decision.

When you start shopping around for a good deal on a rental, it would be preferable if you are able to speak Spanish effectively during negotiations or you may not get the best rate. Your other alternative is to hire an agent to help you. Their services are not free, but it will give you peace of mind if you are not confident enough in your Spanish speaking skills.

Locating Rental Properties

Finding a place to rent in Mexico is not difficult, since the majority of properties are rental units and a large selection is widely available. Think about your budget, and map out the areas in the area you are considering. Do you want to be near shopping areas, or in a gated community? Near the airport? The beach? Be sure to avoid areas with high crime levels, like Mexico City.

The following sources are your best options in locating the perfect rental location in Mexico:

• Newspapers and Internet Cafes have many rental listings available for many local areas.
• Estate Agents have large lists of available rental properties and can assist you in finding the right one for you (and steer you away from undesirable locations).
• Local people – There’s nothing like getting information directly from the source. Talk to people who live in the area that you are considering to rent in.

After you locate a place you are interested in renting, the fun begins. Be prepared to ask questions (or have an agent do it for you) about the condition of the rental. The following are some important points you need to consider before signing that contract:

• The availability of water, gas and electricity. Are they set up, or do you need to do it yourself?
• Is there a water purifier? The water in Mexico is not the best, so it is important to make sure you have safe water available.
• Any maintenance issues? If it is a house you are renting, do you have to maintain the yard, pool and other facilities on site?

Contracts and Payment of Rent

• A standard rental contract in Mexico requires a deposit equal to the rent plus the first month’s rent. The length of time you rent is not always fixed, but some require a 6 to 12 month minimum stay.
• When you pay the rent, it will go directly to the landlord or agent.
• Rent prices go up annually based on Mexico’s inflation.
• Check your contract to see how much notice you will need if you decide to move.

Buying or Renting Property in Mexico

Should you buy or rent in Mexico? It all depends on the amount of time you will spend there and how much you can afford. Get familiar with the Mexican real estate laws, and employ the services of a notary when you want to purchase property. If you want to rent, scout locations, talk to locals and consider hiring the services of an estate agent. With a little investigation, some communication in Spanish, and common sense, buying or renting property in Mexico can be an enjoyable experience.

By Sheila Robinson