Owning property in Huatulco, Mexico is very easy. Once you have found your perfect property, there are a few steps to follow before you become the owner.
By accumulating some information and listening to good advice, you can buy and secure property in Huatulco in less than 60 days.
Step #1 – Making an Offer
The first step is to make a serious offer to the seller. You can do by providing a promise to buy/sell. In Mexico, there are two ways of doing when non-nationals are involved, with the most common of them is either the buyer and seller sign joint agreement, or both agree on the details of the transaction, such as price, closing date, etc. The buyer must pay 10% of the price offered in a secure bank account at the time of signing the document. (A confirmation must be done by a lawyer before any money transfer.)
The second way less common, but often practiced by the Mexicans, is when the seller asks that the money goes directly to him/her. You will have to sign a document describing the details of the transaction in these cases in the presence of a notary public for the safety of both parties involved in the transaction. The notary is the highest placed hierarchically in these situations, and they check no obstacle disturbs the sale of the property.
Step #2 – Finding a Notary
Notaries are used in Mexico for buying and selling property. Notaries have more competencies in Mexico than in Canada and the U.S. They are appointed officials and provide a skillset between a lawyer and a judge. Notaries are involved in all real estate transactions in Mexico that are on private land. Involving a notary in a property purchase assures a good transaction between the buyer and the seller.
Step #3 – The Closing
Signing the contract will happen in front of a notary public. Just before that, the remaining amount of money should be deposited. With the certificate and the signature of the contract, the amount is transferred to the seller and the property to the buyer. Most often the buyer pays the closing costs including taxes acquisition, notary fees, and other expenses. This is somewhere between 6.5-7.5% of the purchase price of the property and includes the administrative costs to set up your bank trust ‘fideicomiso’.
Step #4 – Bank Trust (Fideicomiso)
A bank trust (fideicomiso) is a legal instrument issued by the Mexican Government that allows non-Mexican to acquire properties in the “Restricted Zone” (the limit of 62 miles from the border and 31 miles from the coast).
This legal mechanism is established by a bank and permits foreign investors to buy and sell. It ensures their investment by granting them the same rights and obligations of a Mexican citizen. Fideicomiso beneficiaries have the right to use, lease, inherit, and sell the property to anyone buyer. A Fideicomiso is established for a period of 50 years, and it is renewable at any time. The implementation of the Fideicomiso is simple and should take you four complete weeks.
Step #5 – Funding
Financing is available for property with certain foreign private lending institutions. Scotiabank also grants a credit to the Americans and Canadians up to age 15 and 75% of the value of the property. If you want to know the best financing for your property, the best thing to do is talk with a financial specialist who will be able to offer you the guidance you need when it comes to investing in Huatulco property for sale. Read our article on How to Finance Your New Home in Mexico. It will give you detailed information about how to finance your new home down south.
(Related Article: Substantial Changes to Buying Property in Mexico)