Commercial Property

Commercial Property

Commercial property like the Ford, Sony, Zenith, Toyota and Sharp facilities are allowed to own their commercial piece of property as fee simple. This exemption was made to encourage the large investment for these type facilities that employ so many Mexican Nationals. You, as a foreigner, can also own a piece of land/building and business such as a restaurant, hotel, store, etc. You no longer need a Mexican National to own the Mexican corporation or your commercial property. You then obtain a Work Permit Visa, as a foreigner, to operate the business and provide jobs for the Mexican people. For a Mexican corporation you need 2 shareholders & they can be from any country.

Do you or your spouse have a Mexican Parent?

Many of the Buyers these last few years are Mexican American persons that are residing in the USA. If they have one or both parents with their Mexican birth certificate, the children have a window of opportunity to obtain their Mexican Birth Certificate, which would allow them to OWN their property fee simple as a Mexican Citizen. This opportunity is only good for one generation. This is a real benefit that eliminates the Annual Bank Trust fees, which costs about $330 to $550.00 per year; depending upon the Bank you select and the permit from the Foreign Relations office in Mexico would not be required which is a little over $1,000.00.

Property Taxes, Trust Fees and Homeowner’s Insurance

The annual property taxes are so low that when we tell buyers that a home with a value of $350,000 is $200.00 a year, they think we’re nuts! It’s true. There is a one-time tax that is paid at closing that is an acquisition tax. Your annual fees on a $300,000 home would look something like this: Annual Bank Trust fee @ $550.00, Property Tax @ $200.00, Homeowners insurance @ $350.00, and HOA maintenance fees at an average $150.00 a month for an annual expense of $2,850 for the year.

How does a Mexican Property Purchase Closing Work?

The laws in Mexico provide very well for Foreign Buyers. The system is clear and there are a lot of checks and balances that are in place to protect your real estate investment. When an offer is made and accepted by all the parties, then we set about to obtain the survey, current appraisal, Letter of Instruction from the Seller to the Bank that holds the Trust to place in the new Buyer's names, which includes naming their beneficiaries. We open the file with a Notary or "Notario". A lien waiver certificate is required at closing, a letter from the bank stating the Bank trust fees are current, the property tax receipt for the current year and a letter from the Home Owner’s Association that all fees are current and there are no pending assesments either with the Association or the Federal Zone. The Notario verifies the "Chain of title" and will not sign the document until all the required documents are in order and are within the required dates of no longer than 6 months old for the appraisal and survey.

Who is a "Notario" in Mexico?

A Notary in Mexico is NOT the same as a Notary in the USA. The Mexican Notaries are held in high esteem and are the only non-government person who has the right to use the Seal of Mexico. All Notaries must be Lawyers and in order to qualify as a Notary. Frequent Continuing Education courses are required for all Notaries by the Mexican Government. There are only about 20 Notaries between Tijuana and Rosarito Beach and they must "sign off" on every marriage, will, real estate transaction, etc. When you close a transaction with a Notary, the fees are paid to his office and after the Buyers and Sellers sign and the Seller is paid, then the recording of your documents are completed by the Notary both in the local municipality and in Mexico City. The Notary pays the acquisition tax in the Buyer’s behalf and when your Trust Deed is finished by the Notary, all the documentation that was required for your closing is bound in a legal size book for your safe keeping including the tax return showing your taxes were pa id as required by law.

What happens to my Bank Trust Property if I die?

You list your beneficiaries in the Bank Trust document when the Bank Trust is placed in your name. Should something happen to you, your heirs will need to take an official copy of the USA death certificate and have it translated into Spanish. You will then take those two documents to the Secretary of State from your State and request an Apostle which is an internationally recognized document that the attached death certificate is authentic and will be recognized by the bank to place the Bank Trust in your heir’s name. This fee is $26.00 in California & in Arizona it is $3.00. You can also have a Mexican Will for other assets.

Am I Going to Lose My Property in Mexico?

If you’re considering making an investment in Mexico, use all the means available to assure your purchase is secure. As real estate professionals, we hear concerns raised by buyers because of the publicity of the 14-year battle in the Punta Banda situation. The reality is that people there bought property at reduced prices, relied on the sellers (Americans) promises that all was okay and never followed the normal checks and balances of property closing that would have brought the title problems to light. Many notarios in Ensenada even tried to warn the buyers of their potential problems but most did not listen. Common sense should prevail in any real estate transaction in ANY country. Don't leave your good sense at the border and align yourself with a reliable and honest real estate agent.

Choosing a Real Estate Agent in Rosarito Beach

There are many good Real Estate Agents in the Rosarito Beach area whom are APIR Members, the Rosarito Beach Association of Real Estate Professionals. Baja California Realty is a member in good standing of this well respected organization and our broker, Willie Bautista is a two term president. Check out our agents page to meet one of our representatives who will be happy to help you.