“How safe is buying real estate in Mexico?” is a question that gets asked, probably more than just about any other. You’ve probably heard horror stories about investors who bought real estate in Mexico and lost their land due to some fraud on the part of the seller. It’s enough to make anyone think twice about buying real estate in Mexico, especially if you’re planning to use some of your retirement funds to finance your real estate investment.

Property laws in Mexico have changed, so buying real estate in Mexico is as safe as it is in any developed country. Mexico’s constitution requires that all land that exists within 50 km of a coastline or 100 km of a national border be held in a special trust called a fideicomiso.

A fideicomiso is a bank trust established to hold the deed to a designated property and to manage the trust for the sole benefit of the named beneficiary (the owner). It may seem unusual, but the law effectively creates a ‘fee-simple’ ownership structure that enables the trust beneficiary to do anything to the land that an owner who holds a deed directly can do. There is no difference in the ownership rights of the land.

The fideicomiso actually helps protect owners against land claims that may arise after the property has been sold. To date, no property owner who has used the fideicomiso method of holding land has lost ownership rights in the property.

In addition to the fideicomiso, title insurance also protects an owner’s purchase of land, should a claim arise on it. If you purchase land through Select Mexico Properties, you may also purchase title insurance on your property from First American Title. Select Mexico Properties has on-site attorneys who research all land ownership records and evaluate any potential land claims. We’re confident in the clarity of the title to these properties and we’d like you to feel secure about your purchase, too.

Finally, Coaching Services can show you how to limit your risk when buying real estate in Mexico. You don’t have to risk your retirement funds to make a real estate purchase here, and Coaching Services can show you how to insulate yourself and protect your cash assets. Please don’t wait! If you’re plan includes buying real estate in Mexico, please contact Coaching Services today!

Photo Credit: Karen Barefoot