The Yucatán real estate market is one of the most attractive in Mexico, drawing expats from around the world. However, buying property here requires understanding the legal and practical aspects of real estate transactions. Here’s what you need to know:
Understanding the Fideicomiso (Bank Trust)
Since foreigners cannot directly own land in Mexico’s restricted zones (including coastal areas), property purchases are facilitated through a fideicomiso, or bank trust. A Mexican bank holds the title on behalf of the foreign buyer, giving them full ownership rights. The fideicomiso lasts for 50 years and is renewable, making it a safe and viable option for expats.
Choosing the Right Realtor
Working with a licensed, reputable real estate agent is crucial to avoid scams or purchasing properties with legal complications. Seek agents who have experience working with expats and can guide you through the purchasing process smoothly.
Conducting Due Diligence
Before finalizing any transaction, ensure you:
- Verify the property title and ownership history.
- Check for any outstanding debts or liens.
- Confirm the property has all necessary permits.
- Hire a real estate lawyer for legal oversight.
Ejido Land Caution
Ejido land is communal land that cannot be legally sold to foreigners. Some sellers attempt to sell these properties unlawfully, so always verify land ownership before proceeding.
Financing Options
Most real estate transactions in Yucatán are cash-based, as mortgages for foreigners can be challenging to obtain. However, some developers offer financing options for new constructions.
By understanding these key aspects of the Yucatán real estate market, expats can make informed decisions and secure a home with confidence.
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