Everyone should be aware of the risks inherent in purchasing real estate in Mexico, and should exercise extreme caution before entering into any form of commitment to invest in property there. Investors must recognize the absolute need to obtain authoritative information and to hire competent expert counsel when contemplating any real estate investment.

CAVEAT EMPTOR - Let the Buyer Beware!

Foreigners interested in purchasing property in Mexico should consider the following when making any investment:

Understand that Mexico is a foreign country with a unique set of laws that must be adhered to in order to acquire recognizable rights to real property. Do not expect paperwork, procedures or costs to be the same as in your home country.

If you are purchasing in the restricted zone, you must buy through a Mexican Bank Trust. Don't use a corporation to acquire residential property. A trust is not a lease.

Real estate agents are not licensed in Mexico and escrow, as we know it, does not exist. It is imperative to use qualified professionals including a trustworthy Mexican agent or attorney, possibly in cooperation with a knowledgeable U.S. attorney, since the Mexican professionals do not carry liability insurance.

Insist on U.S. style protections that are available in Mexico, including but not limited to inspections and guarantees. You can ask to have your earnest money held by a Mexican bank in a conditional deposit subject to the satisfaction of any contingencies that you negotiate in your offer to purchase, including issuance of a bank trust if applicable. Get an estimate of closing costs before you make an offer.

Be patient, transactions in Mexico may take longer than you anticipate. If someone suggests that you should purchase before your trust has been issued or without a Mexican Notary Public, beware! Mexican Notaries are official government lawyers who are uniquely empowered to formalize and record real property transactions.

Your purchase of Mexican real estate should be an investment, not a gamble. Many foreigners have paid money or built improvements on property that they cannot obtain legal rights to under Mexican law. The Mexican government in many cases has taken action to help the foreigner acquire recognizable rights because of widespread fraud or ignorance. At some point the Mexican government may draw a line and refuse to regularize such transactions. Foreigners are more educated now and they may be held responsible for acting in accordance with the law.

This article written by Enrique (Henry) Saldana whom in addition to offering mortgage brokerage services, has now compiled a team of experts at Home Buyer Consulting Network that can help you conduct due diligence, negotiate, document and close on commercial and residential real estate transactions all over Mexico.

Enrique (Henry) Saldana, Home Buyer Consulting Network/Advanced Mortgage Corp. Scotiabank's Exclusive Vacation Home Buyers Program Mtg. Broker, Playa del Carmen, Q. Roo Tel: (984) 109-2458 - Cel: (984) 116-8528 This e-mail address is being protected from spambots. You need JavaScript enabled to view it www.buyerbewaremexico.com

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