When it comes to buying or investing in real estate in Mexico, it’s essential to understand the terminology used in the industry.
This article will provide you with a comprehensive list of Mexico real estate terms and their definitions, helping you confidently navigate the market.
Common Mexico Real Estate Terms
|Escritura||The legal document that proves ownership of a property in Mexico.|
|Fideicomiso||A trust agreement that allows non-Mexican citizens to own property in the restricted zone (within 50 kilometers of the coastline or 100 kilometers of the border).|
|Notario Publico||A specialized lawyer who is responsible for overseeing real estate transactions in Mexico.|
|Restricted Zone||The area is within 50 kilometers of the coastline or 100 kilometers of the border, where non-Mexican citizens cannot directly own property.|
|Condominium Regime||A legal framework that governs the ownership and management of condominiums in Mexico.|
|Trustee||The bank or financial institution that holds the trust for a fideicomiso.|
|Capital Gains Tax||A tax is imposed on the profit made from selling a property.|
|Notary Fees||The fees charged by the notario publico for their services in a real estate transaction.|
|Construction||The construction or building process.|
|Plusvalia||A tax on the increase in the value of a property over time.|
Additional Mexico Real Estate Terms
- Avaluo: An appraisal or valuation of a property’s worth.
- Catastro: The government office is responsible for maintaining property records and assessing property taxes.
- Desarrollador: A real estate developer.
- Ejido: Communal land owned by a Mexican community.
- Plusvalia: A tax on the increase in the value of a property over time.
- Predial: Property tax.
- Regimen de Propiedad en Condominio: The legal framework that governs the ownership and management of condominiums in Mexico.
- Registro Publico de la Propiedad: The public registry where property titles and other related documents are recorded.
- Titulo de Propiedad: The official title or deed that proves property ownership.
- Zona Federal Maritimo Terrestre (ZOFEMAT): The federal zone that extends 20 meters from the high tide line on the beach, where specific restrictions apply to property development.
Can non-Mexican citizens own property in Mexico?
Non-Mexican citizens can own property in Mexico, but there are certain restrictions in the restricted zone. They can establish a fideicomiso or use a Mexican corporation to hold the property.
What is a fideicomiso?
A fideicomiso is a trust agreement that allows non-Mexican citizens to own property in the restricted zone.
The property is held in trust by a Mexican bank acting as the trustee, and the trust beneficiary is the foreign buyer.
What is the role of a notario publico?
A notario publico is a specialized lawyer overseeing real estate transactions in Mexico. They ensure that all legal requirements are met and are responsible for drafting and reviewing the escritura.
What are the costs associated with buying property in Mexico?
The costs associated with buying property in Mexico include the purchase price, notary fees, appraisal fees, and closing costs.
Budgeting for these additional expenses is essential when purchasing property in Mexico.
What is the capital gains tax in Mexico?
The capital gains tax in Mexico is a tax imposed on the profit made from selling a property. The tax rate varies depending on the ownership length and the property type.
What is plusvalia?
Plusvalia is a tax on the increase in the value of a property over time. It is typically paid by the seller when a property is sold.
Understanding the terminology used in Mexico’s real estate industry is crucial for anyone looking to buy or invest in property there.
This article has provided a comprehensive list of Mexico real estate terms and their definitions, ranging from escritura and fideicomiso to notario publico and plusvalia.
By familiarizing yourself with these terms, you can confidently navigate the Mexican real estate market and make informed decisions. Contact us now if you have questions.