A Fideicomiso, or Trust, grants foreign buyers of real estate in Mexico's restricted zone (within 100 kilometers from the border and 50 kilometers from the coast) all ownership rights to their property for fifty years. As beneficiary of this trust you not only keep these same possession powers but additionally receive full leasing authority as well as legal sale capability. Moreover, having control over mortgaging decisions and inheritance bestowal allows your privileges equivalent to any fee-simple owner would experience.
A Notario is an important part of the process when it comes to buying and selling property. They are responsible for ensuring that all documents related to the transfer of title – like appraisals, certificates confirming there are no liens or debt against the property - meet legal standards laid out by Mexico's government. Additionally, they handle calculating & collecting taxes due from Seller’s capital gain on behalf of Mexican authorities as well as paying Acquisition Tax (2%) collected from Purchaser at Closing time . Finally, recording transaction information must be done with both Public Registry and Cadastral Office after closing has occurred- typically their compensation is based off value associated with said sale/purchase.
When purchasing real estate in Mexico, the Buyer should be aware of all associated Closing Costs. The largest percentage is usually paid out via a mandatory 2% Acquisition Tax - however depending on the total purchase price there can be additional expenses such as permits, Notary fees and appraisal reports which may range between 3.5-6%. Fortunately these extra charges are potential tax breaks upon resale!
In Mexico, a “Notario Publico” is an officially-certified attorney responsible for authenticating legal documents and calculating capital gains tax. Furthermore, all Mexican real estate transactions must be ratified by the Notary before being recorded into the country's public registry - making them legally enforceable.
The entire closing process usually takes two to three month. However, due to unforeseen events such as Mexican Holidays or permit delays, this may be extended but not necessarily means that either the buyer or seller are in default of their agreement.