Since 2021 was a historic year in real estate sales transaction with the total “Dollar Volume of Sold Listings,” hitting over $171,000,000 in inventory sold many people ask what some important steps when buying property here in Rocky Point. This article will discuss important things to consider so that you can maybe participate in the buying spree currently underway.
Work with a Local Real Estate Advisor
If you are in the market to purchase real estate then you must first choose an AMPI-affiliated Real Estate Advisor. Don’t go it alone because AMPI or the Asociacion Mexicana de Profesionales Inmobiliarios, is the Mexican Association of real estate professionals which guides its agent members to a proper code of conduct and ethics that dignify the real estate market and protect private property rights, this according to their website. In my opinion, the most important aspect of an AMPI-affiliated real estate advisor, aside from ethics, is the standardized use of pre-approved contracting forms that keeps the sales process uniform and in accordance with Mexican law that protects the consumer. Not all real estate advisors are AMPI-affiliated so make sure you ask your advisor if they are an AMPI-affiliated real estate agent, or you can search for one on this website: https://www.rockypointampi.com/ampi-members/
The Bank Trust
A common question asked, “Is it possible to own property in Mexico and how does that work?” The great news is YES as a foreigner traveling or living in Mexico you can purchase property through what is known as a bank-trust or Fideicomiso in Spanish. A bank trust is an agreement where the bank acts as a trustee and manages the ownership of the land along with any improvements and names the purchaser or anybody you choose to be as the beneficiary. Bank trusts are written for up to 50 years and they are renewable for any number of additional 50-year periods. This is not a “land-lease” which is a common misconception. With a bank trust you hold title to the property. Some properties will be held by a Mexican National so there will not be a bank trust established on the property. In that situation the costs to establish a new bank trust can range from $4-$6,000.
If you are working with an AMPI Real Estate Advisor than all transactions will use an escrow company for the benefit of your protection and the purpose of securing your initial escrow deposit payment and ultimately your remaining purchase payment. The escrow company will distribute funds the day of your closing to all entitled parties. The use of an escrow company not only protects and securely transfers large transactions, but it also abides by all Mexican Anti-Money Laundering Laws, which in Mexico are strictly enforced. I recommend working with real estate advisors who only use Secure Title Latin America. They are the largest escrow company in Latin America and process hundreds of transactions each year in Puerto Peñasco.
About the author: Joseph Sanchez is president of Rocky Point Home Builders a design/build contractor specializing in custom home design, construction and engineered renovations and a real estate agent with RE/MAX Legacy. He resides here in Puerto Peñasco with his wife and three children and is originally from Chicago. For more information email him at firstname.lastname@example.org
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If you are in the market to purchase real estate then you must first choose an AMPI-affiliated Real Estate Advisor.