Even since Mexico has developed its tourist destinations and its beautiful Pacific Ocean beaches for foreign tourists, the demand for buying local property and apartments especially around beaches is increasing. Due to the low prices and very attractive exchange rate, many Americans prefer to buy apartments near their favorite vacation destination instead of renting the different place for every visit.

One of the common property choices are apartments as they are affordable with minimum maintenance cost. They are also comparatively safer to leave behind locked when you are back in United States. If you are interested in buying a property in Mexico like an apartment, make sure to follow few simple rules listed in this article.

1) Get The Title Insurance:
If you are buying from the Mexican agent, they must have not raised this point but make sure to get title insurance even if your agent claims it is not important. This will save you from a lot of problems in future especially when you want to sell your apartment to someone else. Another recommendation is to get your title insurance from an American company like Stewart Title, First American or Land American as they are all working in Mexico.

You also need to look out for the restricted zone for foreigners which is 100 km from the border of United States and 50 km from the coast.

2) Make Sure All Documentation are in English:
In Mexico, there is no license required for realtors which means you are at a risk of fraud. Make sure to keep all documents in English or made your realtor translate documents in English if he has already prepared the documents in Spanish. Don’t sign any document if you don’t understand the content.

Documents that are important to be reviewed in detail are called regimen de condominio (Condominum Regime) which include owner’s rights, restrictions and obligations. It is also recommended to work with a reputable realtor especially if you can find someone from United States to refer a good realtor.

3) Use American Escrow Company:
For payment, make sure to use a US based escrow company again to avoid complications. Your realtor may come up with alternates but make sure you are using US based escrow service so that you can have a proper record with US company if something goes bad.

4) Pay the Taxes:
You also have to pay few taxes and transaction costs while buying apartment in Mexico. Failing to do so can allow Mexican Haciend (IRS) to lien and foreclose on your property. Some of the taxes and transaction fees that you may have to pay are listed below.

• Notary Fee which ranges from 0.075% to 1.125%.
• Acquisition Fee which ranges from 0.18% to 4.565%.
• Registration Fee which ranges from 0.02% to 1.82%.
• Other possible taxes based on the local laws can range from 0.50% to 1.00%.
• Cost of Title Insurance which ranges from 0.50% to 0.70%.
• Real Estate Agent fees may vary from 3% to 6% but seller has to pay for that.

5) No Need for Sellers-Disclosure:
Unlike United States, there is no requirement of seller-disclosure in Mexico so do not push for it if you are buying an apartment in Mexico.