Foriegn Property
this is my first time on this site. my question is about buying and selling foreign property. I live in mexico, near cancun, a major tourist area. there are many ,what we call expats living here from all over the world(including myself) and more coming all the time. most expats are from the usa and canada. it is just as easy to fly here from north america, as it is to fly into florida. it is a very good investment area, though the real estate laws are much different from the usa where i am from. when i logged into this site, i could find nothing to support investment in another country. does anyone know of a forum topic on this site where foriegn property can be dealt with? i guess that´s a good place to start. I currently am thinking of selling a property that rents seasonally , or can be used as a private home. it is oceanfront, and close to everything. in mexico there is no multiple listing service. i haven´t found a site anywhere that gave any return to speak of. they are all too specialized or too broad with too many listings to weed thru. i have some friends that had no sucess on the web, marketing thier multiple properties,and a good portion of thier inquiries were, the carlton sheetz get rich tommorrow types. all deals here are cash or trade, as there is virtually no mortgage money, unless you live and work here, and even then it´s quite difficult to qualify.
Mexican law states foreigners cannot own property outright within the restricted zone. Instead, a real estate trust must be set up to hold title for the foreigner. Since foreigners are not able to enter into contracts in buy real estate.
Mexican real estate transactions are not carried out in the same manner as United States real estate transactions. The buyer must retain professionals to assist in the transaction. Mexico has yet to regulate real estate transactions.
A Mexican attorney should be involved to draw up contracts and to review the conditions and terms of sale. Additionally, an attorney can do a title search and point out any problems or alternatives a buyer may have. The buyer should always have his or her own attorney rather than using the attorney of the seller or some attorney used by a real estate company free of charge.
THE RESTRICTED ZONE AND "FIDEICOMISOS"
The law declares that the Mexican nation has original ownership to all land and water in Mexico, as well as minerals, salts, ore deposits, natural gas and oil; but that such ownership may be assigned to individuals.
The Mexican Constitution prohibits direct ownership of real estate by foreigners in what has come to be known as the "restricted zone." The restricted zone encompasses all land located within 100 kilometers (about 62 miles) of any Mexican border, and within 50 kilometers (about 31 miles) of any Mexican coastline. However, in order to permit foreign investment in these areas, the Mexican government created the "fideicomiso," (FEE-DAY-E-CO-ME-SO) which is, roughly translated, a real estate trust.
In order to allow foreigners to enter into the agreement contained in the Calvo Clause, Mexico requires all foreigners to apply for and obtain a permit from the Ministry of Foreign Affairs prior to contracting to acquire real estate in Mexico. This is currently done by the trustee/bank at the time a real estate trust is set-up.
Title Insurance in Mexico: When you buy real estate in Mexico, you would do well to consider taking out Title Insurance on the property. Title Insurance covers you should the property you buy subsequently turn out to have liens associated with it. This especially relevant if the property you are buying has been privatised, having previously been classified as being "Ejido" lands (see below), but even if this is not the case, Title Insurance will protect you if any other previously unforeseen lien or charge is brought against the property before you took possession of the Title Deed. Rates for Title Insurance are around US$5-US$5.50 per US$1,000 of the property's value; pay-able once only at the point of purchase
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thanks for the reply. i am aware of all the things stated in your reply, as i have sold many properties in mexico. it´s not as complicated as your reply makes it seem, and many foriegners are investing here because of the climate and cost of living, not to mention low taxes. my question was really about marketing or listing a property on this forum. i see no format for investment property out of the usa, on this site. there are many excellen real estate investments in this area (riviera maya). the multi nationals are here in force buying up beach property for hotels. prices are still about one third of what oceanfront costs in florida for individuals homesites.