Property Buyers Look At Mexico

January 16, 2008

  A growing number of U.S. citizens are looking across their nation’s southern border, searching for a home or investment property in Mexico. "There are now about 1.5 million Americans living in Mexico, and that number is increasing," said Adrian Arriaga, a Texas-based broker and consultant specializing in properties located in Mexico. "Mexico is the number one destination choice for U.S. buyers of property in foreign countries."

Compared with prices of U.S. real estate, properties in Mexico are real bargains, and there are other incentives for buying a property in Mexico. Cities are rapidly developing. Infrastructures have improved dramatically during the past couple of years, and such developments are continuing. Many growth areas offer outstanding opportunities for real estate investors. One of the first concerns expressed by prospective buyers relates to legal structuring of Mexican property purchase transactions.

"Generally, the laws of Mexico regarding the purchase of real property are similar to those of the U.S.," said attorney John Vernon. "For example, Mexican law recognizes real estate mortgages and various types of security interests in personal property. Also, in most real estate transactions, Mexican banks can act as escrow agents or trustees. However, there are some differences. When Americans participate in their first real estate purchase in Mexico, they are often surprised to learn that title insurance is not widely available. Foreign purchasers should take steps to ensure they have full title insurance. And there is no widespread use of purchase and sale agreements as such documents are understood in the U.S."

It’s always a good idea to work with a Realtor and/or attorney in structuring a real property purchase. "The good news for investors is you can own property in Mexico free and clear, easily and forever," said Dave Ash, author of "The Boom in Mexico Real Estate." "Having lived here for six years, I am amazed at the changes and modern times that seem to have flooded into this area. Small fishing villages have evolved into modern cities with American-style life and mega shopping centers."

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