Buying Real Estate in Punta de Mita, Mexico

Punta de Mita is a luxurious coastal peninsula on the Riviera Nayarit in Mexico, known for its stunning natural beauty, world-class golf courses, and upscale beach resorts. It’s no wonder why so many people are interested in buying real estate in this area.

However, the process of buying real estate in a foreign country can be intimidating, especially if you’re not familiar with the local laws and customs. In this article, we’ll take you through the steps involved in buying real estate in Punta Mita, Mexico, including the fideicomiso or bank trust process, titling, and the costs of closing.

If you’re interested in owning a property in one of the luxury resorts in Punta Mita, such as the Four Seasons, St. Regis, Auberge, Conrad Hilton, One&Only, W Hotel, or the upcoming Rosewood, Mandarina, it’s important to work with a local real estate agent who specializes in luxury real estate to help you find the perfect property that fits your criteria.

The process of buying real estate in Punta Mita typically involves several steps. First, you need to determine your budget and financing options. Next, you should identify the features you want in a property and the location where you want to buy. Once you have found the property you want to buy, you can submit a purchase offer to the seller. The seller may accept your offer or negotiate the terms of the sale. It’s important to work with a local attorney who specializes in real estate law to ensure that the terms of the sale are legally binding and protect your interests.

Foreign buyers must use a fideicomiso or bank trust to hold the title of the property, as required by Mexican law for properties located within 50 km of the coastline or 100 km of the border. The fideicomiso is a bank trust that is set up with a Mexican bank acting as a trustee to hold the property’s title for the foreign buyer. The bank acts as a fiduciary and administers the trust in accordance with the instructions of the foreign buyer. The bank trust is valid for 50 years and can be renewed indefinitely.

After the offer has been accepted, it’s important to conduct due diligence to ensure that the property is free of liens, encumbrances, or other legal issues that could affect ownership. You should also inspect the property thoroughly to identify any defects or issues that may need to be addressed before closing. Your attorney will review the property documents, including the purchase agreement and title report, to ensure that they are accurate and complete.

Once the due diligence has been completed, it’s time to close the transaction. This involves transferring funds to an escrow account, finalizing the purchase agreement, and paying closing costs and fees. The closing costs typically include the notary fee, property registration fee, and transfer tax, which is a percentage of the property’s appraised value. The costs can range from 5% to 10% of the purchase price, depending on the value of the property.

If you’re buying a property in one of the luxury resorts in Punta Mita, the resort may have its own closing procedures that you’ll need to follow. Finally, after the transaction is complete, you should update the property records with the appropriate authorities and obtain any necessary permits or licenses. You should also consider hiring a property management company to help you maintain your property and maximize its rental income potential.

In conclusion, buying real estate in Punta Mita, Mexico, can be a straightforward process, especially in the high-end market. By working with a local real estate

Determine your budget and financing options.
Identify the features you want in a property and the location where you want to buy.
Search for a property online or hire a local real estate agent.
Submit a purchase offer to the seller, which includes the proposed purchase price and any contingencies or conditions.
Negotiate the terms of the sale with the seller if necessary.
Work with a local attorney who specializes in real estate law to ensure that the terms of the sale are legally binding and protect your interests.
Set up a fideicomiso or bank trust to hold the title of the property, as required by Mexican law for properties located within 50 km of the coastline or 100 km of the border.
Conduct due diligence to ensure that the property is free of liens, encumbrances, or other legal issues that could affect ownership.
Inspect the property thoroughly to identify any defects or issues that may need to be addressed before closing.
Review the property documents, including the purchase agreement and title report, with a local attorney who specializes in real estate law.
Transfer funds to an escrow account and pay closing costs and fees, which typically include the notary fee, property registration fee, and transfer tax.
Follow the closing procedures of the luxury resort, if you’re buying a property in one.
Update the property records with the appropriate authorities and obtain any necessary permits or licenses.
Consider hiring a property management company to help you maintain your property and maximize its rental income potential.