Vista Del Mar Realty
Los Cabos real estate home, villa and condo properties are an increasingly viable alternative for those who are retiring, who work from home via computer link with their company, or those who are looking for a getaway vacation home or an outstanding Mexican real estate investment... for all of those who dream of a better quality of life. Home… The word represents security and comfort for the majority of us. All too often the word when used in conjunction with a purchase of Baja real estate property in Mexico creates stress, worry and at times has been associated with financial loss. This need not be the case. Procedures in searching titles and transferring property are similar now to those of the United States and Canada. The buyer of a house, beach villa, condominium or lot anywhere in Mexico must ask the same questions, and should receive answers similar to those they would receive when buying property elsewhere. The warm Baja climate and increasingly improving communications systems are attractive to retirees who also enjoy the rewards of Mexico's lower cost of living. The mountains and desert of Los Cabos combine with the pristine beaches along the Sea of Cortez, are some of the most beautiful in the world and are generally free of contamination. It all adds up to an outstanding quality of life with that special flavor that is Mexico. Recognizing the demand by foreigners for ownership of property in Mexico and recognizing the importance of making desirable properties in Baja California available to foreigners, and the potential economic impact on the country, the Mexican government implemented a series of Foreign Investment Laws beginning in 1973. Article 27 of the Constitution of the Republic of Mexico prohibited foreign ownership of real property within thirty miles of any coastline or closer than sixty miles of her borders. This was referred to as the prohibited, or restricted zone. DREAMS TO REALITY In 1973, a presidential resolution to the Mexican Constitution allowed foreign ownership of property in the restricted zones by way of a Bank Trust or Fideicomiso. Under the Bank trust agreement (Fideicomiso), the foreign owner is able to purchase property in this zone with the property held in trust by a Mexican Bank. The bank administrates the property in accordance with the instructions of the buyer/beneficiary. The buyer/beneficiary enjoys the same rights of ownership as does a Mexican national. He may build on the property, tear down existing buildings, modify them, rent, lease or sell at anytime. The term of the trust is fifty years and it can be renewed for an additional fifty year period. In other words, title to the property may rest in one beneficiary indefinitely, provided that it is renewed within the terms established by the law. The cost for the permit to establish the bank trust is currently less that $1,000 US dollars. Annual bank administration fees generally range from $400 - $700 US dollars. Additional closing costs such as an official appraisal, notary fees, certificates, and registration costs must be paid however, to obtain a registered deed in the buyer’s name. Upon choosing your desired property to purchase Vista Del Mar Realty will supply you with this estimate. Please
call us at 1-888-300-9579 Toll Free to answer any further questions
or to set up a real estate tour on your next vacation
to Los Cabos.
Excerpts of this article used with permission from Linda Neil, Settlement Company. |
