Buying Property in
Mexico
Most foreigners interested in buying Real Estate in Mexico
ask this particular question;
"Can I own property in Mexico?"
The answer is
"YES!",
with some restrictions.
Foreigners may obtain direct ownership of
property in the interior of Mexico. But, under Mexican law, foreigners cannot acquire
direct ownership of residential property within the area 100 kilometers from the border
and 50 kilometers from the coastline. This area is known as the restricted zone. It is
possible, however, to acquire beneficial rights to use, improve, and enjoy property in the
restricted zone through a Bank Trust or Fideicomiso authorized by the
Mexican Government under the Ministry of Foreign Affairs. The Fideicomiso is established for a 50
year renewable term and grants the beneficiary the right to use, rent, modify, or sell the
property. Two advantages of the bank trust are avoidance of probate and transfer tax upon
sale.
Property acquired for commercial use by foreigners may be
owned without the need for a bank
trust, provided that the property is held in a Mexican corporation. Depending on the
type of business, it is often possible for a foreigner to own 100% of the Mexican
corporation.
In a typical transaction, a preliminary sales agreement will
be used. This is like an agreement to agree and is subject to a formal sales agreement
which will be executed at closing. The preliminary agreement should provide for a price
and terms -- generally, cash as financing is not readily available -- and a closing date
conditioned on the issuance of the trust permit if necessary. Escrow as it is known in the
United States is not used in Mexico, and real estate salespeople are not licensed or
regulated as they are in the United States, so be careful of making any deposits up
front.
Real estate transactions in Mexico are "closed" by
a Notario Publico, an official, highly respected government lawyer who acts as a neutral
intermediary. Among other things, the notary is responsible for formalization of the final
real estate contract, collection of transfer and capital gains and recordation of the
transfer with the Public Registry. The notary is not your lawyer, however, and as with any
investment, you may want to seek independent Mexican legal counsel before proceeding.
While not commonly used, American title insurance is
available for Mexican real estate whether acquired directly or through a trust. The cost
of the insurance depends on whether the property you are purchasing is covered by a master
title commitment. The seller of the property should have this information.
A foreigner interested in acquiring real estate in Mexico
should take care to follow all of the formalities under Mexican law. Seek competent legal,
tax, and other professional advice before proceeding.
If you are planning to buy property in Mexico, ACIT can
help.
We list and market property in The Yucatan
peninsula and all over Mexico in cooperation with Real Estate Partners . Local agents in
these communities can help you find just the right property to suit your needs.
Contact me by e-mail for lists of real estate inventory in
these areas and Cancun.
Purchasing Procedures
Foreign Investment in Mexican Real Estate with the Fideicomiso ( Bank Trust )
A real estate trust ( Bank Trust ) is not a lease !
CAN FOREIGNERS REALLY OWN PROPERTY IN MEXICO?
Yes, Americans and other foreigners may obtain direct ownership of property in the interior of Mexico. However, under Mexican law, foreigners cannot own property outright within the restricted zone. Instead, a real estate trust must be set up to hold title for the foreigner. Since foreigners are not able to enter into contracts in buy real estate, they must have a bank act on their behalf, much as a trust is use to hold property for minors because they also can not contract. The following is a brief outline of the law regarding such trust, known as "fideicomisos", but potential buyers should always get advice and have all real estate transactions overview by a licensed Mexican attorney.
WHO'S INVOLVED IN REAL ESTATE TRANSACTIONS IN MEXICO?
Normally, there are three to four players involved in any real estate transaction in the restricted zone:
- A real estate company
- The buyer's lawyer
- A bank
- A public notary
All four are helpful in their respective areas in assisting with real estate transactions. Transactions outside of the restricted zone do not involve a bank since it is not necessary to establish a real estate trust in those areas. Otherwise the transactions are much the same.
Because of the similarities of real estate transactions in general, it is easy to assume that the basic terms and principles which are familiar in the United States also hold true in Mexico. This assumption becomes easier to make when United States real estate terminology is adopted for transactions in Mexico. Much of the paperwork is similar, if not exactly the same, as that used in the US. Although, there are many aspects of Mexican real estate transactions that are identical to procedures carried out in the United States, there are many aspects that are completely different. As a rule, a foreigner should assume nothing.
Mexican real estate transactions are not carried out in the same manner as United States real estate transactions. The buyer must retain professionals to assist in the transaction. Mexico has yet to regulate real estate transactions. Real estate agents and brokers are not legally licensed in Mexico. Consequently, a foreign buyer cannot always depend on the normal safeguards that would be applied to real estate transactions in the United States. The old saying "let the buyer beware" is very appropriate. Anyone can set up a real estate company in Mexico. There are no special requirements or brokerage licenses to obtain. A would-be real estate agent merely has to establish a Mexican corporation, obtain a work visa, and he is in business.
There are good reasons why the real estate industry in the United States is highly regulated. Until the real estate industry is regulated in Mexico, there will always be some real estate companies who prefer that buyers know as little as possible about real estate transactions. After all, a buyer cannot ask questions if he does not have any knowledge of the laws.
Currently there is nothing similar to a Real Estate Commissioner or a Department of Real Estate in Mexico. Some states are beginning to look at some kind of real estate legislation, but it might be some time before this is a reality. The NAR National Association of Realtors and the AMPI Association of Mexican Real Estate Professionals in Mexico are good places to start when trying to determine if a real estate company is reputable.If your agent its not a local with at least 15 years in the market make sure you investigate the agents background back in their home towm watch out he might be an OUTLAW. Some of the real estate companies have established quite a reputation for themselves at the U.S. Law Enforcement Agencies as well at some of the Consulates too.
A Mexican attorney should be involved to draw up contracts and to review the conditions and terms of sale. Additionally, an attorney can do a title search and point out any problems or alternatives a buyer may have. The buyer should always have his or her own attorney rather than using the attorney of the seller or some attorney used by a real estate company free of charge. As the old saying goes, you get what you pay for, and usually if someone's services are offered free of charge you are probably paying for them in some other way. Legally, only a licensed Mexican attorney should provide advice on the law. If an attorney is licensed in Mexico he should be able to produce a "cédula profesional." This document is a registered license to practice law in Mexico and includes a photo of the attorney and his signature. To be sure that an attorney is licensed in Mexico, a foreign buyer should ask to see the attorney's license, or have the attorney's license number included in a retainer agreement before employing any services.
American attorneys are not licensed to practice law in Mexico and should not give advice on Mexican Law. I should clarify, here, that I am referring to individuals who are licensed to practice law in the United States, and not merely individuals who are citizens of that country. There are currently very few Americans who are licensed to practice law in Mexico. The fact that a person is licensed to practice law in the United States in no way allows him or her to practice law in Mexico: Mexican or United States law.
Besides formalizing your real estate transaction, an attorney can be very helpful in saving you money. This is because attorneys are involved in many different transactions and have contacts with banks, notaries, and the Mexican government on a regular basis. Because of this they are aware of the most competitive cost and fees involved in a transaction and can make sure that the buyer is given the best possible prices. An attorney can also inform the buyer regarding his or her legal options and by doing so can make sure that no opportunities are missed: tax planning considerations, closing costs which should be paid by the seller, and ways of taking title to the trust rights which make sense for the particular circumstances of a specific buyer. Very often one piece of good advice can save the buyer thousands of dollars in tax savings or other savings when the buyer eventually sells the property.
When looking for an attorney it is important to remember that any Mexican attorney can normally handle a real estate transaction. The buyer is not limited to only the local attorneys where the property is located. All real estate transactions involving a trust are governed by federal law. This means that all such transactions are carried out the same way regardless if the property is in Cancun or Los Cabos.
THE RESTRICTED ZONE AND "FIDEICOMISOS"
The law declares that the Mexican nation has original ownership to all land and water in Mexico, as well as minerals, salts, ore deposits, natural gas and oil; but that such ownership may be assigned to individuals.
The Mexican Constitution prohibits direct ownership of real estate by foreigners in what has come to be known as the "restricted zone." The restricted zone encompasses all land located within 100 kilometers (about 62 miles) of any Mexican border, and within 50 kilometers (about 31 miles) of any Mexican coastline. However, in order to permit foreign investment in these areas, the Mexican government created the "fideicomiso," (FEE-DAY-E-CO-ME-SO) which is, roughly translated, a real estate trust. Essentially, this type of trust is similar to trusts set up in the United States, but a Mexican bank must be designated as the trustee and, as such, has title to the property and is the owner of record. The Mexican Government created the "fideicomiso" to reconcile the problems involved in developing the restricted zone and to attract foreign capital. This enabled foreigners, as beneficiaries of the trusts, to enjoy unrestricted use of land located in the restricted zone without violating the law.
A "fideicomiso" is a trust agreement created for the benefit of a foreign buyer, executed between a Mexican bank and the seller of property in the restricted zone. Foreign buyers cannot own real estate in the restricted zone due to Constitutional restrictions. The bank acts on behalf of the foreign buyer, taking title to real property. The bank, as trustee, buys the property for the foreigner, then has a fiduciary obligation to follow instructions given by the foreigner who is the trust beneficiary. The trust beneficiary retains and enjoys all the rights of ownership while the bank holds title to the property. The foreigner is entitled to use, enjoy, and even sell the property that is held in trust at its market value to any eligible buyer.
In order to allow foreigners to enter into the agreement contained in the Calvo Clause, Mexico requires all foreigners to apply for and obtain a permit from the Ministry of Foreign Affairs prior to contracting to acquire real estate in Mexico. This is currently done by the trustee/bank at the time a real estate trust is set-up.
Given the changes made for 1997 in the foreign investment Law, and the fact that a buyer can now apply for and obtain a trust permit in a matter of days, it is always better to secure the trust permit from the Ministry of Foreign Affairs before entering into any contract.
The bank, as trustee, must get a permit from the Ministry of Foreign Affairs to establish a real estate trust and acquire rights on real property located within the restricted zone. The purpose of the trust is to allow the trust's beneficiary the use and exploitation of the property without constituting real property rights. The beneficiaries of the trust (fideicomisarios) may be:
- Mexican corporations with foreign investment
- Foreign individuals or legal entities
The law defines "use" and "exploitation" as the right to use or possess the property, including its fruits, products, or any revenue that results from its operation and exploitation by third parties or from the bank/trustee.
The law does not clarify how trust permits will be issued. Article 14 of the law states that the Ministry shall decide on issuing the permits "...considering the economic and social benefit, which the realization of such operations imply for the nation." The basic criteria used to determine such benefits are likely to change somewhat with the publication of the new foreign investment regulations. However, it is reasonable to anticipate that some of the unwritten rules used by the Mexican government in the area of real estate trusts will be included in the new foreign investment regulations. It is also possible that some of the confusing elements will be eliminated. It is important to understand the application of the current regulations, even if they are going to be replaced, as well as some of the unwritten policies the government has used in the past, to better understand what criteria will be used by the Ministry in the future.
The Ministry of Foreign Affairs must grant any petition for a trust permit that complies with the stipulated requirements within 5 working days following the date of its presentation to the Ministry's central office in Mexico City. It must be granted in 30 days if the application is submitted to one of the Ministry's state offices. The Ministry of Foreign Affairs must confirm the registration of any property acquired by foreign-owned Mexican corporations a maximum period of 15 days following the filing of the petition. In both cases, if the maximum period passes with no action by the Ministry, the trust permit or registration are considered authorized.
There is a common misconception among foreigners investing in Mexico that once the trust expires, the beneficiary loses all rights and benefits of the sale of the property held in trust. This is not the case. On the contrary, the beneficiary has a contractual right under the trust agreement with the Mexican bank to all benefits that may result from the use or sale of that property, even though he does not hold title to the property. Under Mexican Law, the bank, as trustee, has a fiduciary obligation to respect the rights of the beneficiary.
A real estate trust is not a lease. The beneficiary can instruct the bank to sell or lease the property at any time. The beneficiary can develop and use the property to his liking and benefit, within the provisions of the law. Generally, the law allows most activities engaged in by foreigners.
One of the first things you should request when purchasing property in Mexico is a copy of the lien certificate (certificado de libertad de gravamen) on the property. It should indicate the owner of record, surface area and classification of property type, the legal description, and whether there are any liens or encumbrances filed on record against the property. The buyer can also request a certificate of no tax liability (certificado de no aduedo) from the local taxing authority.
Legal Steps To Purchase Real Estate In Mexico:
1. Offer and acceptance and/or promissory agreement
In accordance with Mexican Law, a letter of intent fulfills the requirements for it to be considered to be a valid contract, with the condition that there has been mutual consent on the part of both the seller to transfer a specific property and the buyer to acquire it.
2. Title Search and Conditions of the Property
This will ensure that none of the information of the Public Registry of Property and Commerce regarding the property is overlooked.
3. Requirements for closing and formal execution of a standard real estate Transaction in Mexico:
- Certificate of No-Encumbrances: This certificate will enable the Notary to assess that the property does not have any lien or encumbrance, or any claim pending over it, and thus can be transferred with a clean title. It is obtained directly at the Offices of the Public Registry of Property and Commerce and basically it must contain at least the following information: I) the number of years of documented history made on the property; II) the surface area of the property in accordance with the records; III) the metes and bounds of the property; IV) the name of the owner; V)classification of the property (urban or rural); VI) a legal description of the property (such as if it is owned in a trust or by several owners); VII) the name and signature of the registar and VIII) the official seal of the Public Registry of Property and Commerce.
- Certificate of No-Tax Liability: This certificate will enable the Notary Public to assess that the property tax has been paid prior to the transfer of the property.
- Property Appraisal and Site Survey: In accordance with the Real Estate Law ("Ley de Catastro"), it is mandatory to carry out a site survey on the property and do an official appraisal. The appraisal must be done estimating the commercial value of the property, considering its surroundings, a market survey and zoning regulations.
4. Notary Public and Public Registry of Property and Commerce
The function of the Notary Public is to act as an extension of a Judge or the Government. His duty is to ensure that a real estate transaction is formally executed in compliance with all legal requirements. Upon the execution of the transaction, the deed of title must be recorded at the Public Registry of Property and Commerce of the domicile in which the real estate, subject matter of the transaction, is located.
A Mexican "notario" is an attorney who, after passing rigorous examinations, is commissioned by the government as a public notary. A notario holds high office for life, unless he or she is removed for cause. The notario fulfills a public function delegated by the government. Although licensed as an attorney, the notario is not in a position to provide either of the parties with legal advice. The notario's responsibilities include collecting and reviewing the sales contract, property tax and water payment receipts; ordering a bank appraisal: freezing the property's file at the local public registry (no documents may be recorded in a property's file during three consecutive thirty-day periods); reviewing the property's file to verify the legal ownership and search for liens, encumbrances or anything that could affect the title (as the majority of public registries are not automated, this procedure can take from 60 to 90 days); requesting the public registry to issue a "Certificado de Libertad de Gravamenes" (Certificate of Freedom from Liens and Encumbrances); and performing the closing at this office where the notario handles the transfer of the deed, tax withholding on the underlying real estate transaction, and the recording of the documents at the public registry.
The Most Common Choices For Purchasing Real Estate In Mexico:
1. General Purchase Sale Agreement
A purchase sale agreement occurs when one of the contracting parties obligates itself to transfer the ownership of property and the other agrees to pay a certain price in consideration of the property rights. The contract is perfected and binding between the parties as soon as the property and its price are agreed upon, even when the property has not yet materially been delivered and the price paid. All such contracts must meet specific requirements in accordance with Mexican law in order to exist and be valid.
There are two types of elements to the contract:
A. Essential Elements: The essential elements of any purchase sale agreement: consent which is granted by the seller's agreement to transfer the real estate to the buyer, and in turn, the buyer's consent to pay a certain price; and object which is the purpose of the title transfer of the real estate on the one hand, and the payment of a certain price as consideration of the transfer.
B. Validity Elements: The validity elements are: legal capacity that refers to the legal rights of the parties to enter into the contract; and legal form, which are the formalities with which a transfer complies in order to be perfected. For example, real estate transactions must be in writing, and in order for such to be binding before third parties, they must be recorded at the Public Registry of Property and Commerce. Basically, the fundamental obligations of the seller in a purchase sale agreement, are: a) to deliver the property being sold to the buyer; b) to guarantee the quality of the property; and c) to guarantee the title (with cure in case of eviction).
On the other hand, the buyer's principal obligation is to comply with the payment of the price in the terms place, and form agreed in the agreement.
2. Installment Sales Agreements withholding transfer of title:
In this kind of agreement, the seller reserves title of the property until full payment of the sale price is made, but the buyer may use and enjoy the real estate until full payment is made. Usually, this kind of agreement includes installment payments. There are some advantages in using this kind of agreement: First, the agreement can be recorded at the Public Registry of Property and Commerce as being enforceable and binding before third parties. Second, the seller is not able to sell the property while the purchaser is in compliance with the sales agreement, usually meaning that he is current in his payment obligations to the seller. Finally, the obligations of the parties are subject to what in Mexican Law is commonly known as "Condicion Suspensiva" (suspensive condition), which conditions the agreement to full payment of the price to the seller.
3. Irrevocable Real Estate Trust Agreement:
This is better known as a "fideicomiso" and is the most common instrument for the acquisition of real estate property within the restricted zone, usually for residential purposes. The seller, "trustor", will transfer property to a Mexican bank institution, the "trustee", by means of an irrevocable trust agreement. The trustee will hold the property on behalf of a designated beneficiary (usually the buyer). The bank is obligated to administer the real estate only for the benefit of the beneficiary, who holds the right of use and enjoyment of the real estate, as an owner. The bank holds title to the property but the beneficiary is entitled to use it and even sell the property held in trust to any eligible buyer, providing that he instructs the bank to do so.
Bank Trust Information
The "fideicomiso" is set up through a Mexican bank for a period of up to 50 years and can be renewed for 50 years. To acquire the land the purchaser must obtain a permit from the Ministry of Foreign Affairs. The buyer can lease, sell or transfer the property to another family member, and if he dies, his property can be passed to an heir. At the end of the 100 years the property can be sold.
In the trust there are three elements: The trust Settlor (Fideicomitente) which may be a physical or legal Mexican person, who is the owner of the property which is to be placed in trust; the Trustee (Fiduciario) which, by law may be only a credit institution and which holds the raw real estate; and the Beneficiaries (Fideicomisarios) the legal or physical foreign persons who are the beneficiaries of the trust who obtain the use and benefit of the property.
The bank (known as the trustee) holds the trust deed (known as the escritura) for the person or persons purchasing the property (known as the beneficiaries). This property is not part of the bank's assets and cannot be subject to any lien or attachment for any bank obligations. The beneficiary has all ownership rights to the property and may sell, lease, mortgage or pass on to their heirs as desired under law. A bank trust is not a lease.
The Mexican government established the trust agreement as a way of protecting foreigners interested in owning property in Mexico. The reasoning was that by making ownership pass through the trust process, there would be an automatic review of the transaction to ensure it was legal and unencumbered. The bank is required to check ownership, insurance and indebtedness of the property, providing further protection to the foreign owner.
Trusts are renewable at any time by filling out a simple application with the bank. It was never the intent that these properties pass back to the government at the end of the trust period. This is a common misconception and fear of most buyers. It may help in understanding the Bank Trust to compare it with the Deed of Trust, a type of financing instrument used in the U.S. People who buy homes, paying the full amount upfront, receive their titles right away. However, this rarely happens. Under a deed of trust the buyer of a house has only "equitable title," or an equity interest, with the right to use but only a restricted right to sell, until the loan is paid off, after which the owner receives the actual fee simple title. Until then it is held by a trustee, usually a bank or title company. In Mexico the Bank Trust is also held by a trustee, but the buyer never receives the actual title. Realistically many homeowners in the U.S. never receive title to their properties either, because they sell or refinance their homes before the 30-year term of their loan is complete.
Taxes
Property taxes are very low in Mexico as a whole. The property tax, known as a predial is .1% of the assessed value. Taxes are paid annually, with the assessed value determined at the time of sale. If you purchase a property with an assessed value of $100,000US dollars your annual tax rate would be $100.00US dollars. The reason taxes are so low is due to the fact that they have never been a source of revenue for the Mexican government
Real Estate Acquisition Tax (transfer tax): Individuals or companies purchasing real estate, consisting of land, or land and its improvements in Mexico, are subject to the payment of a real estate acquisition tax calculated at the rate of 2% of the value of the property (the rate may vary from state to state from 2% to 3.3%). All purchasers of real property must pay this tax whether the acquisition is carried out through a purchase and sale agreement, donation, trust, assignment, mergers of companies, split-off, or payment in kind.
Mexican real estate is subject to a 20% capital gains tax on the gross proceeds from the sales without any deduction. There is another option, net basis taxation up to 35% (depends on the state and the interpretation of the notary). Under this tax plan, gain is calculated by deducting from the gross proceeds (1) the original cost of acquisition, (2) the cost of improvements, (3) notarial expenses and other costs of sale, including appraisal costs, and (4) commissions. The original cost is separated between land cost and cost of buildings, with at least 20% allocated to land. The cost of buildings and any other improvements is then decreased at 3% per year between the date of acquisition and date of sale, but the cost is not decreased below 20% of the original amount. The cost of the land is increased based on changes in the National Consumer Price Index.
Formula for capital gains tax: AV2(appraised value 2) -AV1(appraised value 1) ?Improvements - Cost of the Sale=Taxable Amount x 35%=Tax Due
Your FM2 or FM3 can help you to avoid capital gains taxes when selling your property. If someone proves they were living on their property for two years in Mexico, they can avoid paying any type of capital gains.
Individuals in the restricted zone, who are residents of Mexico (have an FM3), and who rent their rights in trust property (fideicomisos) must make provisional payments on their Impuesto Sobre la Renta (Tax on Rents) for income generated from cash deposits, credits, exchanges coming from rents or sub-rentals. The calculation will be based on one of two methods; one option is to pay 1% (on average, based on state) of the gross amount received during a three-month period, or you can opt to pay around 35% (on average, based on state) of your net profit.
In order for any authorized expense to be deductible, the taxpayer must obtain an official invoice, which is known as a FACTURA. This receipt must be printed on the press of a government-authorized printer and will contain the RFC number (taxpayer ID number) of the individual or company issuing the receipt.
Authorized items for deductions are the following:
1. Property taxes, as well as any contributions or local taxes for improvements, planning or public works expenditures.
2. Maintenance costs that are not related to improvements or additions; water payment when not paid by the tenant who occupies the property
3. Interest paid for loans obtained for the purchase, construction, or improvements of the property
4. Employees directly employed at the rental property. Salaries, commissions and /or fees are deductible, as well as taxes and benefits paid on those salaries.
5. Insurance premiums on the properties
6. Investment in construction, including additions and improvements (these expenses are amortized at the rate of 5% per year for construction and 10% for installation expenses or improvements.
Mexican residents must file a declaration with authorities by the 17th of each month. An annual declaration is due no later than April 1st the following year and the difference between provisional payments made and total tax due, based upon global Mexican income, is due with the annual return.
Mexico has signed a number of treaties to avoid double taxation with other countries and their benefit can be applicable depending on the type of transaction. Taxes that are paid on Mexican income are generally deductions on U.S. and Canadian income. It is wise, however, for the foreign taxpayer to check with his or her personal accountant to determine how to declare these foreign tax payments.
Contract Legalities
A legal real estate contract has 5 necessary parts:
1. Competent parties- This is usually defined as "being of legal age and sound mind." In Mexico another factor comes into play--language. A person who doesn't understand Spanish, the legal language of the country, no matter how mature or intelligent, is not competent in any practical sense. Therefore, the contract must be translated into English.
2. Lawful Objective- This means that contracts can be voided if it is discovered that the intent has been to set up a drug business, a house of prostitution, or some other illegal operation. If one doesn't own a property, it can't be lawful to try to sell it.
3. Offer and Acceptance- This means that a contract must be signed by both parties. It must also have a date when it takes effect and must specify the place where it is signed.
4. Legal Description- Legal descriptions can take several different forms--metes and bounds, lot and block, government survey--but the key is that the property must be readily identifiable.
5. Consideration- Consideration accompanies a contract as an evidence of good faith. It usually means money, although it can take the form of a promissory note, another piece of property, an item of value like a car or boat, or even such an intangible as "love and affection."
Title Insurance
Purchasers of Mexican real property can now receive Owner's Policies of Title Insurance that can be issued on both sides of the border from various companies to both U.S. and Mexican buyers. Most title insurance policies today are U.S. contracts of indemnity guaranteeing ownership rights as vested in a fideicomiso (bank trust) for residential property acquired by foreign buyers in the prohibited zone, or for properties held in a Mexican corporation for non-residential purposes (i.e. industrial and commercial). Mexico is not unlike the U.S. in that there is a definitive legal framework for ownership of land by foreigners known as the New Foreign Investment Law (Dec. 28, 1993) and as mandated under Article 27 of the Mexican Constitution. In addition, there is formality and compliance in the development of real property. Regulatory statutes and procedures are mandated on a state-by-state basis and require a series of official approvals, permits, and authorizations, coupled with public disclosure and written notification by the governing public agency.
American title Insurance is available for Mexican real estate whether acquired directly or through a trust. The cost of the insurance depends on whether the property you are purchasing is covered by a master title commitment. The best way to protect yourself is to get title insurance. Most Mexican companies don't sell it, but Houston based Stewart title Guaranty, Lawyer's Title, and Fidelity National Financial does. The insurance runs about $4 to $7 for every $1,000 of property value, versus $3 to $4 in most of the U.S. In addition to title insurance, property insurance is also available in Mexico and the rates are relatively low. we recommend 1st American Title Insurance
About Cancun, Playa del Carmen and the Mexico state of Quintana Roo
General Info
Location: Eastern Mexico, Yucatan Peninsula Borders: Caribbean Sea and the states of Yucatan, Campeche and
the country of Belize to the south.
Important cities/sites within the state: Bacalar, Cancun, Chetumal (capital), islands of Cozumel and Isla Mujeres,
Playa del Carmen, XCaret, Xel-Ha, Sian Kaan Reserve and the archaeological zone of Tulum
Major airport(s): Cancun International Airport (CUN), Chetumal International Airport (CTM), Cozumel Airport (CZM), Isla Mujeres Airport (ISJ)
Population: 880,000
Size: 15,136 square miles
Time Zone: Central Standard Time
Climate: Tropical Wet/Dry
Playa del Carmen
Playa, as it is called, is the most happening place on the coast -- lots of beach (especially when the wind and currents are flowing in the right direction), hotels for every budget, a good choice of restaurants, and an active nightlife, most of which is on or around Avenida 5, Playa's very popular promenade. In the last few years the town has grown quickly, and local residents and the tourism board are working hard to keep it from becoming a smaller version of Cancún. They are encouraging builders to use the same kind of tropical, slightly quirky architectural style that the town has become known for.
Cancún Is the reason most people travel to Mexico and offers an unrivaled combination of high-quality accommodations, dreamy beaches, easy air access, and a wide diversity of shopping, dining, nightlife, and nearby activities -- most of them exceptional values. There is also the lure of ancient cultures evident in all directions and a number of ecologically oriented theme parks. You will run out of vacation days before you run out of things to do in
Cancún. Snorkeling, jet-skiing, jungle tours, and visits to ancient Maya ruins and modern ecological theme parks are among the most popular diversions. There are a dozen malls with brand-name and duty-free shops (with European goods at prices better than in the U.S.), and more than 350 restaurants and nightclubs. The 24,000-plus hotel rooms in the area offer something for every taste and every budget.
Tulum
The town of Tulum (near the ruins of the same name) has a hotel district of about 30 palapa hotels, which stretch down the coast of the Punta Allen peninsula. A few years ago it was mainly a destination for backpacker types, but with some of the most beautiful beaches on this coast and many improvements in hotel amenities, it now attracts people with bigger budgets. Construction is booming, both in the town and along the coast. Here you can
enjoy the beach in relative solitude and quiet (unless your hotel is busy building additional rooms). The flip side of this is that Tulum doesn't have the variety of restaurants that Playa and Cancún do.
Quintana Roo
Is located on the Yucatan Peninsula, bordered by the Bay of Chetumal and Rio Hondo to the south, and the Caribbean Sea to the east. It is the youngest state in the country, as well as the farthest east, meaning it is the first state to see the sunrise everyday. It is also one of the only states featuring magnificent underground rivers with limestone sinkholes, perfect for diving.
Puerto Morelos
This town 30 minutes south of Cancún remains a sleepy little village affectionately known by the locals as "Muerto Morelos." It has a few small hotels and rental houses, and in the vicinity are a few secluded spa resorts. The coast is sandy and well protected by an offshore reef, which means good snorkeling and diving nearby, but the lack of surf means lots of seagrass and shallow water. If you're looking for good swimming, you should head
farther down the coast. If you're looking for a quiet seaside retreat, this might work for you.
Akumal
The community at Akumal and Half Moon Bay is relatively old for this shore, which means that it's already built up and doesn't have the boomtown feel of Playa and Tulum. Akumal has a strong ecological orientation. The locals are a mix of Americans and Mexicans, who enjoy the unhurried lifestyle of the tropics, making this a good place to relax and work on your hammock technique. There are a few hotels; most of the lodging is rental houses.
Consequently, the town is a favorite with families who enjoy the calmness of the place and can save money by buying groceries and cooking for themselves.
Costa Maya
South of Tulum lies the large Sian Ka'an Biosphere Preserve and, beyond that, what is known as the Costa Maya, a term that designates the rest of the coast all the way down to Belize. This coast does not have beaches as good as those of the Riviera Maya. Most of the coast is along the Majahual Peninsula, which is very attractive for scuba divers and fly fishermen. Farther south is Lake Bacalar, a large, clear freshwater lake fed by cenotes (wells or sinkholes). Inland from here are the many fascinating ruins of the Río Bec area
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Community Guide Playa
Playaguide.com
Online Travel Guide For Playa del Carmen And The Mayan Riviera.
Emergency Services
Amerimed Hospital (Cancun)
Located 35 minutes from Playa del Carmen, state of the art care at the 1st American hospital chain in Mexico specializing in the care of International tourists.
Local Shopping
Costco (Cancun)
Costco just 35 minutes from Playa del Carmen!
Walmart (Cancun)
Walmart 35 minutes from Playa del Carmen.
Parks and Recreation
Xcaret Eco Park
Mayan-themed water park 30 minutes from Playa del Carmen.
Restaurants
Playa Restaurant Guide
A brief overview of just a few of Playa's great restaurants.
Schools
Playa Lingua Language School
Five minutes walk from the beautiful white sand beaches of Playa del Carmen, Playalingua offers a very high quality of teaching with qualified, responsible and motivated staff, supported by 29 years experience.
Solexico Language School
Solexico Language and Cultural Center provides students the opportunity to learn Spanish in a short period of time and be immersed in the Mexican culture. They offer classes in colonial Oaxaca or the beach town of Playa del Carmen.
Sports
The Abyss Dive Center
The Abyss Dive Center is a full service Canadian run Dive Shop and Training Facility in Playa del Carmen.
Tourism
The Blue Parrot Hotel and Beach Bar
Playa del Carmen's premier boutique hotel property right on the beach.
Weather
Playa del Carmen Weather
Currency
The peso is Mexico’s offical currency, but almost all purchases can be paid in US dollars.
There are currency exchanges in the Hotel Zone and downtown, and you can also exchange currency in the hotels and banks.
Language
The official language is Spanish, but English is spoken in most of the touristic establisments.
Weather
With 200 sunny days throughout the year, the temperature can vary from 85/100 farenheit (20/40 celcious), and humidity remains 90% throughout the year.
Beaches
All beaches are federal property and open to everyone. The sand is white and fine and the sea is turquiose. Use extra caution at beaches located on the open sea because of strong waves and undertow.
Clothes
Casual clothing is used. It is not necessary to wear any formal suit or tie unless you have an event where required. A luxurios dinner at a restaurant requires semi-formal attire. Bathing suits are not premitted in shopping centers, discos and restaurants.
Electricity
The standard electricicy voltage is 110 volts AC/60 cycles, as in the United States. Three phase connectors are not available everywhere, so it is recommended to bring an adapter in case you need it.
Drinking Water
The infrastruture of the Mexican Caribbean hotels has special facilities for a purifying water system. And every hotel has its own water filters. You can also ask for purified bottled water at any touristic establishement
Playa del Carmen
From Wikipedia, the free encyclopedia
Playa del Carmen
hotels and condos in Playa del Carmen
Playa del Carmen is a city on the coast of the Caribbean Sea in the north east of the state of Quintana Roo, Mexico, located at 20.62° North, 87.07° West. The city is the seat of the Solidaridad municipality. In 2003 the city had a population of about 50,000 people, though it is rapidly growing in population.
Tourism to Playa del Carmen began with the passenger ferry service to Cozumel, an island across the Cozumel Channel and world-famous scuba diving destination. While passing through, many people realized that it was a nice place to relax away from the crowds of Cancún but with the same quality beaches and turquoise waters. While not as incredible as Cozumel, Playa del Carmen's coast offers some good scuba diving opportunities, as well as cenote diving for the more adventurous.
Today Playa del Carmen, or just 'Playa' as it is colloquially referred to, is the center of the Riviera Maya concept, which covers from Cancún to Tulum and the Sian Ka'an biosphere reserve. All tourist activity in Playa del Carmen centres on the Quinta Avenida, or Fifth Avenue, is a pedestrian walkway located just one block inland from the beach, and lined with boutique hotels, shops, bars and restaurants.
Playa Del Carmen wants to retain its small fishing village and artist colony charm, without becoming as large or tourist-dependent as Cancún. To this end, the city passed an ordinance by which all buildings, no matter what, have a limit of three stories, though a few four storey buildings were built before the ordinance.
There is a significant European influence in Playa, especially Italian. It is not ununsual to find that the proprietors of a particular hotel, restaurant, or bar are expatriots from Italy, Argentina, the US, Canada, France, Spain, or one of the many other country of origins represented among Playa del Carmen's residents.
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more properties for sale in Playa del Carmen
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