Acquisition happens through use of what is known as a bank trust, or Fideicomiso. The seller is the trustor, the bank is the trustee, and the buyer is the beneficiary. Reassuring for many, most of the banks involved have been taken over by international banks (i.e. Citibank ) Mexican banks are also protected against bankruptcy by the government, so the fideicomiso is indirectly protected by the government.
All lots or homes need to be recorded in public record after determination that there are no liens or encumbrances, proof that property taxes and capital gains have been paid. As beneficiary you have the right to transfer your rights to a third party as well as pas it on to named heirs.
This trust, “fideicomiso”, comes with a term of 50 years. In 1993 laws were created to address the duration of fideicomisos. The Foreign Investment Law holds that these trusts can be renewed for an indefinite number of 50 year terms. All of the above mentioned transactions happen with the use of a government appointed lawyer, known as Notario. This is the only acceptable and legal way to acquire property. Once all requirements and terms have been met, the Notario records the transaction in the municipality in which the property is located.
As in any country, there are always people who represent themselves as sellers or owners of property. Over the years we have seen abuses of all shapes and sizes. We learned long ago that thorough investigation and due diligence is instrumental in purchasing/developing property here in Mexico. Our success in this area has reassured our friends/clients and is also why our offering of legal assistance/advice has been so advantageous.
Whether you choose to let us help you or not, we encourage you to protect yourself. There is nothing equal to owning property in Baja California Sur, as the years go by, we notice our friends/clients getting happier and happier with their investment. The only difficulty seems to be how to accommodate the constant visits of friends and family!
Let us use our experience and intimate knowledge of the area and laws to help you attain your dream. We are always ready to discuss whats new/available or answer any questions you might have.