It's well known that a property in Mexico costs a lot less than in the United States. It's a big attraction to invest on the other side of the border.
A few weeks ago, NBC 7 Responds covered a story about a local family who lost tens of thousands of dollars that they paid for a house south of the border after their contract fell apart. Since then, we learned they’re not the only ones.
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WATCH HEREWe decided to talk to a real estate agent in Baja California about how we can buy a property safely in Mexico.
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SIGN UP Mexico is a top destination not only for foreigners who want to invest in real estate. Along with the gorgeous views, culture, food and wineries, one big attraction is the significantly lower property prices. But can you purchase and own property anywhere in Mexico as a foreigner?
“There are two different ways. One by a bank trust, or “fideicomiso,” which is through a bank institution. The other is to make a Mexican corporation, and you as a foreigner are the CEO and president," said Julian Salas, a real estate agent in the Baja California wine valley.
With more than 20 years of experience, he says buyers should do their due diligence before investing in real estate in Mexico.
NBC 7 Responds
Visit the property
Make sure you like the area and that there’s water, electricity and a sewage system.
Get a document called a certificate of no tax lien
Make sure the property you’re interested in has no outstanding debts, mortgages, tax obligations, foreclosures or pending lawsuits.
Hire a Notario Público, which is a type of lawyer in Mexico
The Notario Público will do the research and check if the property is in legal condition to be sold and if the buyer is in legal condition to buy a property.
According to Salas, the Notario Público basically protects your investment. They are also responsible for ensuring the transaction is in the public registry of property, where it says a person or company is in the process to buy a property.
"He will avoid others from buying your property," Salas said.
Another reason why you need a Notario Público during the transaction, according to Salas, is to make sure you get your deed.
And how you pay is also very important.
“Avoid making payments or deposits in cash. Do them through bank transfer, directly to the person in the title,” Salas said.
But what about buying a property long term? How can you make sure you’ll own your property after you finish your payments?
“Even if it’s a couple of months or 10 years, it’s very important to sign the agreement in front of the Notario, so nobody can buy it," Salas said. “This way, you are protecting your down payment and the payments you are making monthly."
However, because of his experience, Salas’ advice is to save your money.
“Try to avoid properties in private contracts and long term," Salas said.
Salas says you can even hire a lawyer in the U.S. if the transaction of a property in Mexico is done here, so that in case of a problem, you can sue that company or person in the U.S.
If you signed the contract in Mexico, and you feel you were the victim of fraud, you can accuse them in Mexico of what is called "fraude equiparado," or fraudulent behavior, to try to get your property or money back.
