Mexico offers a great opportunity for foreigners looking to invest in real estate. US and Canadians looking to purchase and finance property in Mexico can benefit from becoming familiar with some of the terminology involved in a typical Mexican real Estate Transaction.
What is a fideicomiso and why is it important?
A fideicomiso is a bank trust which is renewable every 50 years. It is similar to a deed of trust in the United States. Many borrowers buy in Mexico without obtaining a fideicomiso and either pay a mortgage directly to the developer or to a seller. This is dangerous since the borrower does not have legally recorded ownership of the property.
Who is the notario publico?The notario publico is a government position of high power. Among the numerous responsibilities of a notario publico is the handling of land disputes, recording of real estate transactions and determining property taxes.
What is an escritura?
An escritura is the deed that a property owner receives in Mexico. The public registry is not as sophisticated in many Mexican markets as it is in the United States. Since this is the case, it is good to obtain a copy of the escritura from the existing owner at the time that you write a purchase contract. This document is crucial to obtaining financing and most lenders will need a copy of it.
This is the first installment of our Mexico Buyers Guide Blog and does not even begin to touch on the complexities of closing a loan in Mexico. More information can be found at http://www.mexicomortgageloans.info/. Please feel free to contact us via our website in order to gain more knowledge into the process of financing a property in Mexico.
Tuesday, May 6, 2008
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