Don't Buy Property In Playa, before reading this
Playa Del Carmen is a popular getaway and second home destination for Americans and Europeans. Every year many foreigners lured by the scenic beauty of this beach side area are flocking to Playa del Carmen, Mexico. Naturally, this popularity has resulted in a booming Real Estate market in Playa del Carmen. More and more people are dying to buy Playa del Carmen Real Estate.
Though, real estate in Playa del Carmen is a very lucrative and good long term investment, many factors have to be considered before buying property in Playa del Carmen.
There is a misconception that foreigners cannot buy property in Playa, Puerto Vallarta and Cancun Real Estate in Mexico. This is NOT true! Any foreigner or Mexican National can establish a Fideicomiso (the equivalent of an American beneficial trust) through a Mexican bank to purchase real estate in Playa del Carmen or for that matter anywhere in Mexico, including the Restricted Zone. For practical reasons, even in unrestricted zones, many foreigners, and Mexican Nationals for that matter, prefer to hold their property under a Fideicomiso.
To do so, the buyer requests a Mexican bank of his choice to act as a trustee on his behalf. The bank, as a matter of normal course, obtains the permit from the Ministry of Foreign Affairs to acquire the chosen property in trust.
The Fideicomiso can be established for a maximum term of 50 years and can be automatically renewed for another 50-year period. During these periods you have the right to transfer the title to any other party, including a member of your family.
The bank becomes the legal owner of the property for the exclusive use of the buyer/beneficiary, who has all the benefits of a direct owner, including the possibility of leasing or transferring his rights to the property to a third party or pre-appointed heir.
The trustee is responsible to the buyer/beneficiary to ensure precise fulfillment of the trust, according to Mexican law, assuming full technical, legal and administrative supervision in order to protect the interests of the buyer/beneficiary. Fideicomisos are not held by the trustee as an asset of the bank.
Another alternative is to purchase non-residential property through a Mexican corporation, which under certain conditions can be 100% foreign-owned, with a provision in its by-laws that the foreigners accept being subject to Mexican laws and agree not to invoke the laws of their own country. Also, they agree that the real estate acquired be registered with the Foreign Affairs Ministry and be used for non-residential activities. In other words, under these conditions foreigners can directly acquire properties destined for tourist, commercial and industrial use.
Author : Tom Budniak
About the Author: Playa del Carmen has many excellent real estate investment oportunities like Beachfront Condos, Rental, Villas, Apartments etc. If you have any questions or advise regarding Mexico Real Estate, feel free to contact Tom Budniak. Deals Property in Mexico including Puerto Vallarta Real Estate and Playa del Carmen Real Estate as well.
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Print Article | Download PDF | 20 views | May 23 2008
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