Questions and Answers for Buying a Home in Mexico
Q: How do foreigners hold title to property in Baja Mexico?
A: You hold title through a Bank Trust because you are purchasing ocean front property and oceanfront property is a Restricted Zone property for foreign investment according to the Mexican Law. A bank trust does provide the benefit of additional protection for the buyer.
Q: How long is the Bank Trust valid?
A: Your Trust is for 50 years, renewable for as many more 50-year periods as you wish. You can list your property in your will and pass on the property to your family or you can sell it or rent it in the same way you would with any property in the US. “Club Marena” is responsible for providing the final Bank Trust to each of the homeowners at their expense.
Q: Can I get Title Insurance?
A: Yes! U.S. title insurance is available which provides buyers with complete security that the title and the property is transferred and owned in a completely legitimate capacity.
Q: How is “Club Marena” managed?
A: “Villas Marena” is managed by a Homeowners Association. The Association will follow the same guidelines and have the same high standard of property management that Americans are accustomed to.
Q: What are the Homeowners Association fees?
A: Your monthly Homeowners Association Fee is $301. This includes fire and earthquake insurance for the building, landscaping and maintenance for all common areas, 24-hour security guards, and garbage pick up. There will be an initial deposit of 25% of the total annual fees of each home to establish the Reserve Fund for the Homeowners Association.
Q: What are the closing costs?
A: Your total closing costs are estimated to be 3% of the total purchase price. This includes the Real Estate Acquisition Tax and all the costs involved in establishing the Bank Trust. The Bank will not issue any Trust before thoroughly investigating the property as well as the owners/ developers. Therefore, the Bank Trust also functions as Title Insurance. Nevertheless, Title Insurance is available to the buyer at the buyer’s expense. Additional expenses such as title insurance, first year property taxes, initial homeowners deposit, etc. will run an additional 2% of your purchase price. These are just estimates to give you a sense of your out the door costs.
Q: What are the property taxes in Baja Mexico?
A: Your yearly property taxes will run you about ¼% (0.25%) of the total purchase price.