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How To Purchase Real Estate

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									PRLog.Org - Global Press Release Distribution




                       How to buy Mexican real estate using Bank trust, "Fideicomiso"

       By Tom Budniak
       Dated: Apr 03, 2009

       Mexico Real Estate is always in high demand especially among American citizens. But there are some laws
       that any foreigner interested in buying Real Estate in Mexico should be familiar with....

       Mexico Real Estate is always in high demand especially among American citizens. But there are some laws
       that any foreigner interested in buying Real Estate in Mexico should be familiar with. Though under
       Mexican law, foreigners may obtain direct ownership of Mexican property in the interior of Mexico,
       foreigners cannot acquire direct ownership of residential property within the area 100 kilometers from the
       border and 50 kilometers from the coastline. This zone in Mexico is known as the "Restricted Zone". But
       there is an indirect way to purchase and enjoy Mexican property in the restricted zone through a Bank Trust
       or "Fideicomiso" authorized by the Government of Mexico. Fideicomiso is the legal equivalent of deeded
       ownership (commonly referred to in the U.S. as fee simple)

        Earlier, foreigners were barred from owning Property in Mexico but With the North American Free Trade
       Agreement beginning January 1, 1994, the Foreign Investment Act of 1993 was passed by the Mexican
       congress to promote foreign investment into Mexico. This law allowed foreigners to own 100% of the
       shares of a corporation and purchase property. As a foreigner, you can acquire irrevocable and absolute
       ownership rights to Mexico Real Estate through a 50 year, and can be renewed every 50 years indefinitely,
       perpetually irrevocable and transferable Fideicomiso Trust. This enabled foreigners, as beneficiaries of the
       trusts, to legally enjoy unrestricted use of land located in the restricted area.

        The Fideicomiso has couple of advantages of the bank trust. One is avoidance of probate and the second is
       transfer tax upon sale of Real Estate in Mexico.

        How it works. Upon the purchase of Real Estate in Mexico through a Fideicomiso, the Mexican
       government issues a permit to a Mexican bank of the buyer's choice. The property Title is then delivered to
       a Mexican Bank which acts a "Trustee". The Bank then designates the buyers as the beneficiary of the trust.
       The beneficiary now can use the property. The Beneficiary has the same rights to lease, mortgaging, selling,
       inheriting, willing and improving the land as any other Real Estate owner in Mexico.

        What Does a Bank do? There are selected banks that are authorized by the Mexican government to hold
       the Real Estate Fideicomiso. The process of getting authorization is very strict. The bank reviews property
       documents to ensure that they are complete and legal. Remember, you can tarnsfer Fideicomiso to any
       authorised Bank. The Property bought in Mexico under Fideicomiso cannot be expropriated by Mexican
       Government except for public purpose. In such cases Mexican Government has to pay market price with
       any interest accrued.

        What does it costs? The costs incurred include:

        1) Permit Fees from Secretary of Foreign Affairs, Mexico
        2) Registration fees with National registry, Mexico City and
        3) Annual Administration fees for the first year (depending on the bank)
        4) The Bank acceptance Fees
        5) 10% IVA tax
        6) Closing costs which include the title search, appraisal fees, notary fees for the deed, tax certificate, filing
       fees, transfer taxes(2% of the purchase price) and recording fees.


                                                           Page 1/2
PRLog.Org - Global Press Release Distribution




 Hope this clears lot of doubts from a prospective Foreigner Buyer interested in buying Real Estate in
Mexico. If you still need a few questions answered about how it works, please call us. We will be happy to
go over it personally.

Call us today:

REALTY EXECUTIVES MEXICAN CARIBBEAN
Avenida 5th y 40th
Playa del Carmen, Quintana Roo, Mexico
In Playa del Carmen, Mexico: 984.879.4339 or 984.803.0710
Mexico Fax (551) 084-2852
In Mexico City 55.8525.9035
Email: tom@rex-mexico.com
http://www.mexicobestbuy.com/

Author: Tom Budniak

###

As you can see, Mexico has many excellent real estate investment oportunities like Beachfront Condos,
Rental Villas, Apartments etc. If you have any questions, requests or need any advise regarding Mexico,
feel free to contact Tom Budniak at http://www.mexicobestbuy.com/ of Realty Executives Mexican
Caribbean for the best deals in Mexico.

Category           Real Estate, Property, Tourism
Tags               mexico real estate, mexico real estate for sale, beach resort for sale, mexico mortgage, mexico realtor
, mexico homes
Email          Click to email author
Phone          984.879.4339
Address        Avenida 5th y 40th
               Playa del Carmen, Quintana Roo, Mexico
City/Town      Playa Del Carmen
State/Province Quintana Roo
Zip            54321
Country        Mexico




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