Despite what you may have heard, you can own property in Mexico, and our principal role is to substitute potential problems with a process that works. We have the experience that enables us to anticipate the needs of our registered clients. You can depend on Yucatan Mexico Beach Realty's help, to set up your basic operating infrastructure here in Mexico, by accompanying you through the people and resource phase of your orientation. Purchase your property with perhaps more comfort than you would in your own home town.

For general explanation purposes where foreigners are concerned, there are basically two categories of Mexican real estate. Property within the restricted zone and property outside the restricted zone. The restricted zone can be identified as property within 31 miles of the coast and within 62 miles of the border, and there are special exceptions in Mexican law which governs its purchase. Almost all the properties YMB deals with are in the restricted zone, because we specialize in the beach communities north of Merida.

For some 35 years, the Mexican government has required foreigners who wish to buy property in the Restricted Zone to do so through a bank trust, or fideicomiso.

The trust has an initial term of 50 years, and is renewable for an additional 50 and gives all the rights of ownership to its beneficiary (you). Currently, it costs about $2,500 US to establish the trust, and the annual maintenance fee, starting in the second year, is about $400 US, depending on the bank that holds the trust and the value of the property. As the beneficiary you are permitted to renovate, rent, heir or sell the property, but if your long term plan is to move down here and open a little business, you are not permitted to operate a business on a property held by a trust. You will need to buy the building in the name of a Mexican corporation.

Opening a Mexican corporation is not difficult and currently you do not need a Mexican partner. However; unlike Canada and the States, a Mexican corporation can not be owned by only one person, so you will need a second person even if they only control 2% of the shares. If you want to use a non-Mexican, then they will need to be present in Mexico to sign or you'll need to go to your local Mexican embassy to execute the appropriate powers of attorney (more on that as necessary). The corporation owns the property 100%. You will also require a Mexican accountant for about $50 to $100 US a month, to prepare the monthly tax filings required by the government. The principal officers of the Corporation must also obtain FM3 visas from the Department of Immigration. YMB will walk you through this when the time comes.

Once you have located a property of interest, Yucatan Mexico Beach Realty will prepare a draft of the offer to purchase. Such draft identifies parties involved in the sale, a description of the subject property, the price being offered, chattels included / excluded in the sale, the closing date, the possession date, if the current owner intends to rent back, as well as special clauses as requested by the client.

Financing in Mexico is a hassle unless the vendor is participating by taking back paper. In this case the title stays in the name of the vender until his interest in the mortgage has been discharged. This arrangement happens frequently but due diligence must be taken to avoid the numerous potential hazards.

A Notario Publico, or notary certified to act in real estate matters, will execute the final sales agreement. The Notario will review the deed and examine title to the properly to ensure a clear chain of title exists prior to registration of the new deed.

In Mexico, closing costs are normally paid by the buyer and when all is said and done, will amount to at least twice the cost of transferring a property in the States or Canada. However, once you purchase the property, it is cheap to service the costs of ownership, when compared to the United States or Canada. As an example I can tell you that the property taxes on my ocean front home are a whopping $85.00 a year, fortunately you can pay it over 3 payments!!

The costs are based on the appraised value of the property, which can be lower than the sale price. A 2% transfer tax applies, plus attorney's fees, which usually are 2-3% of the property's appraised value, and the cost of forming your Trust or Corporation. The real estate fees are usually 6 % and are paid by the vendor unless we have been retained as your buyer's broker.

A Corporation can be formed in as little as a week, while a fideicomiso can take two or three weeks, due to obtaining a permit, and other documents. Such as bank statements for the past three months, with your name and account numbers on the statements, and they do not accept copies off the internet.

If the property is in an existing bank trust, then the process can be speeded up, and will cost less; about $600 US, to register your interest at the bank that administrates the trust. Historic properties are completely different, in that the process can take up to a year due to a maze of factors beyond your and our control, but is very do-able!!!

Because we specialize in beach properties, you will certainly enjoy the wild diversity in creation. There are hundreds of beach houses in Chelem and Chuburna alone (which is like a gigantic sand bar) all of them with a completely different look.

On my first trip here in 1999, it reminded me of how the Florida Keys used to look back in the 60's. Remember; on the beaches there are no set back or variance requirements, no land to building ratios, or most of the restrictions imposed in Canada or the United States, so over time, you can turn your purchase into perfection with YMB Construction Services at your disposal