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How To Buy a Condo in Mexico

by Brent May

 

Perhaps you have spent years thinking about buying a condo in your retirement in a warm, sunny place or you are now working remotely and that has made the idea of owning a home abroad a potential reality.

Where is a good place for this? Mexico. Mexico is always a good idea. And Huatulco is an even better idea.

More recently being discovered as a sunny and safe destination for those seeking beachfront or ocean view properties as second homes, income-generating vacation rentals, or for a tropical retirement, the Huatulco real estate market has been undergoing some big changes, not only with the types and locations of homes, but who is buying them and where.

 

Biya-Ná Luxury Condos

The Biya-Ná project is on the forefront of a new market need in Huatulco, with a contemporary multi-family development aimed towards not only retirees but young professionals and families, both in the Mexican national market and to investment buyers from Canada and the USA.

Zion Mexico Developments located in Huatulco chose a prime location in Chahué. It is conveniently located near downtown La Crucecita and Santa Cruz beach; both places can be reached on foot in 10 mins. It takes 15 minutes by car from Huatulco International Airport. Close to the beach, schools, shopping, restaurants and nightlife, medical facilities, services, parks and green spaces.

Biya-Ná is 12 exclusive condos each with a large terrace and plunge pool. Featuring amenities including an elevator, stairs, Sky Lounge with infinity pool, storage area and common BBQ on the rooftop, Biya-Ná has proven popular with both investors and full-time residents, excited by the unique opportunity for return on investment and lifestyle offered by this development.

 

The Benefits of Owning a Condo in Mexico

Besides being immersed in a sunny and warm climate with 340 days of sun per year, there are many advantages to owning a condo in Mexico.

  • If you want to immerse yourself in another culture and learn Spanish, you will have so much opportunity to learn about the way Mexicans live, how important family is, how to slow down and especially how life is to be enjoyed.
  • Amazing homemade, locally sourced food that you can enjoy in restaurants on the beach with your feet in the sand while watching the sunset. Whenever you want. Oaxacan cuisine is here. And so is the mezcal.
  • The beach is beautiful. While there are beautiful beaches in a variety of destinations, Mexico is well-known for boasting some of the world’s most beautiful beach locations. Huatulco has 9 gorgeous bays and many beaches where you can just enjoy the scenery, the salty breeze, snorkel, swim, paddle board, fish. It becomes dangerously addictive.
  • If you’re moving with kids, you’re giving them a unique opportunity to grow up with a multicultural experience and broader vision.
  • An eco destination. Chahué Bay, an exclusive and safe area of Huatulco, is one of the five beaches in all of Mexico that has obtained the distinction of Blue Flag, an honor granted to beaches and marinas around the world when it meets 32 strict environmental criteria in the areas of water quality, environmental management, safety, services and environmental education. This distinction is unique, in addition to the outstanding ecological certification that Huatulco has already achieved, with the recognition of Earth Check Platinum.
  • Huatulco is an extremely accessible town. Walk, ride a bike or take local transportation. Great for your health and fitness, but also an excellent way to make new friends. If you venture out somewhere a bit further, taxis are very affordable.

 

How to Buy a Condo in Mexico

Once you have found your perfect property, there are a few steps to follow before you become the owner. Get the information you need and work with a trusted and reputable real estate agent. Read How to Find a Oaxaca Coast Real Estate Agent for your Mexico Property Hunt.  Here are the steps of buying a condo in Mexico.

 

Step #1 – Making a Serious Offer

The first step is to make a serious offer to the seller. You can do so by providing a promise to buy/sell. This letter of intent will define conditions of sale.

 

Step #2 – Signing the Promissory Purchase Agreement

The payment structure is defined in the promissory purchase sales agreement. The buyer must be clear on how they will pay. They will have funds ready and available according to the payment structure.

This agreement defines the percentage of down payment as agreed upon by both parties. Down payment percentages can vary depending on the type of sale: private home, development, predevelopment, etc. A typical down payment may be 20% but could run anywhere from 10 to 60%. If the buyer would like for the property to be taken off the market, a nonrefundable payment can be arranged.

The promissory purchase sales agreement defining payment dates and terms is signed by both parties and becomes a legally binding contract.

 

Step #3 – 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 somewhere between a lawyer and a judge. Notaries must be involved in all real estate transactions in Mexico that are on private land. This ensures a good transaction between the buyer and the seller. 

The buyer chooses the notary as they will pay the closing costs. Closing costs vary by state. In Huatulco, for example, closing costs run 5 to 8% of the purchase price.

Each party is separately introduced to the notary. The contract is then signed. When the notary starts work on the property file, they also start work on the bank trust with a foreign release purchase.

 

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 any 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 from 60 to 90 days to set up.

 

Step #5 – The Closing

The buyer is ready to make the final payment because the property title is ready or the property is ready to hand over. Final payment is sent directly to the seller (a few days before as international transfers can take between 2 to 7 days depending on the intermediaries’ institutions. ) Both parties will sign in front of the notary. A Power of Attorney may be designated to sign for a party if they are absent or out of the country. The buyer is responsible for closing costs including property taxes. The seller pays capital gains.

If you have been considering real estate in Mexico and you don’t know where to start, our real estate agents can help you. If you’re curious about the difference between buying from a developer or a real estate agent, read our article here:  How to Save Money: Developers Vs. Real Estate Agents in Mexico.  Contact us today to find out more about the homes and condos for sale in the Oaxaca Coast area.

Read More:

What Bayside’s Real Estate Agents Wish Buyers Knew About the Buying Process in Mexico – Part 1

What Bayside’s Real Estate Agents Wish Buyers Knew About the Buying Process in Mexico – Part 2

 

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