Playa Del Carmen Real Estate

Real Estate In Playa Del Carmen

Playa Del Carmen is one of a kind in beauty and value. For more info go here: Playa Del Carmen blog. Buying real estate in Playa Del Carmen is getting more and more popular every year. There is a lot of confusion out there about owning property in Mexico. Especially when it comes to owning owning property in the "restricted zones" like close to the beach, and near the borders, Playa Del Carmen included.

As experienced real estate owners in Mexico, let us clear up a few misunderstandings about owning Playa Del Carmen Real Estate. We've don't this before, so following these instructions will make it as easy and quick as possible. We pretty much know how the process works and understand the reasons for this method of property ownership, so here is a partial explanation for the trust method of property ownership in the “Coastal Zone” of Mexico.

Many people are still under the impression that the ownership of property in Mexico is not available to foreigners. It’s still not unusual to have someone emphatically exclaim that “you can’t own property in Mexico”, or that “you have to have a Mexican partner on title to own property in Mexico”. What usually happens is that what the masses believe is totally untrue.

In truth it is a little different

At one time the Mexican Government prohibited foreign nationals from owning land in the restricted border zones (within 50 km. of the ocean, border etc.) because they were concerned about being taken over by foreigners. Once a law is included in the constitution of Mexico, it cannot be changed. In those days people who loved Mexico and wanted to live there tried, with varied rates of success, to own their own property.

Next came the Fideicomiso, a land trust system that allows newcomers to Mexico to own land (excluding Ejido land) in previously off limits territory (Playa Del Carmen included). Not unlike a trust created in Canada or the USA where assets are lodged in the trust and held for the exclusive use of the beneficiary, your Mexican trust holds the property deed for the sole benefit of you, the beneficiary. You have the right to do anything with the property (within the law of the local jurisdiction of course). You can occupy, rent, sell, develop, lease, etc. at your discretion. One advantage of the trust is that when creating the trust document for a specific property, you lay out your beneficiaries upon you death, eliminating the need for a Mexican Will.

The disadvantages include the price of making the real estate fideicomiso (only slightly more than the price for nationals to create a new deed when they buy) and secondly, the yearly fee payed to the bank that holds the trust for you. I look at this fee (tax on us) that Mexican’s do not have to pay, as a part of the price we pay to enjoy all that Playa Del Carmen has to offer. This ‘payment of yearly trust fee’ certainly makes for good discussion at margarita time.

The law does not dictate that you must be a Mexican resident to buy Mexican real estate. Even in restricted areas like Playa Del Carmen. The laws governing property ownership are certainly different from ours, but the result is nearly the same. While not the simplest system, the fideicomiso does cover most every point and provides a safety umbrella for both parties involved in buying and selling the land. When the time comes, make sure you use a good Notary that adheres to the proper procedures. Ask questions!

Ideally this article cleared up more questions than it raised. There is lots of information on trusts in different publications and on the internet, most of which is factual. What you should take away from this is it's not hard to own real estate in Mexico. Other than some errands to the notary, getting a Fideicomiso is unchallenging and no sweat. Owning Real Estate In Mexico is within your reach!