For many years, foreign investors found it difficult, if not impossible, to make a secure property purchase in Mexico. Laws restricted what foreign investors could do, and there was no good way to ensure that the seller of the property was the legal owner. With changes to Mexican law regarding foreign property ownership, the process of purchasing Mexico real estate is much more like purchasing property in the US than ever before.

Not all properties are sold with title insurance, so that should be the first thing you look for, as a buyer of Mexico real estate. If you cannot get title insurance, or the property owner says you don’t need it, think twice about buying the property. As a purchaser, it’s very important to follow the procedures established by the government when it comes to Mexico property sales.

Mortgages are still relatively new in Mexico, and many land sales are still executed with cash. The concept of an escrow account is foreign, in more ways than one! Some buyers are beginning to incorporate escrow accounts into sales transactions, but don’t be alarmed if your transaction doesn’t involve an escrow account. The money to purchase the land isn’t released to the seller all at once, but rather at certain points in the transaction. Your purchase contract will spell out when funds will be released to the seller while the sales transaction is concluded. It may take several weeks to conclude a property sale.

Since Puerto Vallarta falls within the coastal zone, all Puerto Vallarta property purchased by non-Mexican citizens will be held in trust, in a fideicomiso. Mexican law makes no exception to this rule and this is the only way in which foreign owners can hold property. The fideicomiso is a very safe type of ownership and is frequently used by Mexican citizens as well. In a fideicomiso, a bank of the purchaser’s choosing holds the deed to the property and acts as a trustee in the sole interest of the beneficiary-owner. A fideicomiso is established for 50 years and can automatically be renewed for another 50-year term. A property sale doesn’t have to extinguish an existing trust. Sellers can simply designate a new beneficiary-owner, who will receive the remainder of the fideicomiso, and can then renew it at expiration.

If you would like more information about the safety of ownership for Puerto Vallarta property, mortgage lenders or real estate purchases, please contact a Select Mexico Properties sales representative today. We can provide you with the information you need to get started on your purchase of Mexico real estate.

Photo Credit: Lisa Kong

If you’ve been reading the blog here, you know that I’ve been touting the value of Puerto Vallarta property. I’ve said that real estate here has appreciated at a rate of 10 percent per year for the past ten years. That amounts to a phenomenal growth rate, and given the conditions of other real estate markets, it sounds almost too good to be true.

It’s not! Take a look at the multi-list service in Puerto Vallarta for homes in this area. See what a Puerto Vallarta luxury home sells for in this region. You can buy an improved property, but you won’t get nearly the bang for your buck that you’ll get if you buy a parcel of land and build a home on it. In this case, it’s much cheaper to build than buy, and once you’re done building, you’ll be amazed at the valuation.

I have to tell you, however, that the best Puerto Vallarta property isn’t available through a real estate agent. You won’t find these sites listed anywhere on the MLS. Bar none, the best luxury residential building sites are available directly through Select Mexico Properties. When it comes to these sites, there’s no middleman to deal with. In addition to reducing the costs for both buyer and seller, buyers will get the benefit of having the most experienced, professional residential design and engineering staffs at their disposal.

Building a hillside home in Puerto Vallarta requires the highest quality architects, engineers and construction specialists. Select Mexico Properties can provide its buyers with a solid design, engineering and construction package that will be less expensive than locating professional assistance separately and will bring exceptional value to the process of building a luxury Puerto Vallarta property.