How to Buy in the restricted zone in Mexico and abroad

Today it is easy and simple to acquire property as a foreigner in Mexico, even in what is known as the Restricted Zone. This special area includes all property within 50km of any Mexican coast inland, and / or 100km from any border. For issues related to the history of Mexico, was prohibited by law any foreigner to obtain possession and control within the limit of 50-100km. This belt is known as the Restricted Zone. Over time, and in order to attract and promote foreign investment, Mexican laws have been modified to create remedies that would allow any foreigner to acquire real property within the Restricted Zone. There are two simple ways available to anyone who wishes to acquire properties in Mexico, including beachfront. One of them is the trust, the other is the formation of a Mexican company. The trust is commonly used where the purposes of the property are for residential use, provided that the land does not exceed 2,500 m2 extension (in which case they have to resort to the option of forming a Mexican company). The Trust has three component parts: the trustor (the seller), the trustee (the buyer) and trustee (a bank). In form, the legal effect of the trust is the trustee retains ownership and temporal domain of the property , and thus complies with the provisions of Article 27, Section I of the Constitution of the United Mexican States, which forbids foreigners to acquire property within the Restricted Zone. The trustee (the buyer) in turn, is the sole beneficiary of the trust object, and as such beneficiary shall have and enjoy the use and possession of the property, may live in it, alter, improve, mortgage, lease, sell, transfer benefits to another person either physical or moral and perform any other act of ownership. It also acquired all the obligations of ownership, such as property tax, utilities, maintenance fees if any, and so on.

On the other hand, the trustee has the right to appoint one or more recipient (s) substitute (s) who (is) in turn receive all the rights and obligations under the fideicomisio if the beneficiary dies during the life of the trust. In Thus, the heirs will not have to carry out any legal proceedings before the courts of Mexico, which would take time and money in legal fees. just have to notify the bank of the death of the trustee and file your death certificate and their identifications. Then the bank will give instructions to a Notary Public and protocolarizar these documents will be recorded resulante Scripture as the new beneficiaries of the trust and therefore the new owners of the property. The Trust in turn has a duration of 50 years. However, the December 27, 1993, was issued a presidential decree establishing the new Foreign Investment Law. In Article 13 of the Act provides that the Secretary of Foreign Affairs (SRE) will enable the renewal of trusts over the restricted areas at the end of its duration. Moreover, the SRE may authorize a new trust on the property transferred from a trust to another for a period of up to 50 years if the beneficiaries of original and the new trust are different. The cost varies depending on the trust bank as trustee is selected, and the annual fee charged for administrative expenses of the trustee.

The process itself is simple too. The first step is to select the notary public and the bank trustee, who is going to work. The trustee in turn, shall request permission to the Ministry of Foreign Affairs. Permission is granted to banacaria institution of the buyer's choice, which, through its delegated trustee shall file a free writing to the SRE that contains the name and nationality of the settlor (the seller), the name of the bank that will act as trustee, the name and nationality of (the) trustee (s) and substitute trustee, the duration of the trust, the use that will give the property, description, location and area of ​​the building, away from the building on the area of ​​upscale Federal Land or border, the attachment containing the measures and boundaries of the property, and cover the payment of duties. Once the permit, the Notary may proceed to develop the Deed, which must be approved by the trustee. Then the three parts sign the Public Deed before a notary to formalize the transfer of ownership of the property, which shall be recorded in the Public Registry of Property and Commerce by the Notary Public. And so it concludes the process of acquiring a property for a abroad within the Restricted Zone in Mexico. The whole process can be further simplified with the help of a real estate professional, properly prepared to guide the buyer through the entire process in a simple, specific and complete, ensuring that they meet all prerequisites.