Can The Mexican Government Take My Property?

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This is one of the most common questions from foreigners who are interested in purchasing property in Mexico. Even if you don’t ask the question you have probably thought it a time or two and wondered if there really was such a risk. One would expect that you’re going to go through all the proper channels of purchasing your property legally. Work with a professional Realtor who is experienced, educated in Mexico Real Estate, an AMPI & MLS member, Conocer Certified, and Licensed. Complete the process by hiring a professional closing attorney to represent your interest to transfer the property into your name.

The Mexican Government has no legal right to take the property nor do they want to discourage tourism or purchasing property and investment. Under NAFTA (North American Free Trade Agreement) Mexico may not directly or indirectly expropriate property except for a public purpose. Under certain guidelines it must be founded on public interest and the owner must be compensated. For example, if the land is required to build roads or railways. This same process exists in most countries including the USA and Canada.

To legally own your property as a foreigner in the restricted zone your Title/ Deed is a trust called a Fideicomiso (fee-day-e-co-miso). It is held in 50-year increments issued by a permit and there is some confusion, people fear they will lose their rights to the property during their ownership of after the permit expires. This is not the case. The real estate trust (Fideicomiso) is simply renewed every 50 years by the Minister of Foreign Affairs with a new 50-year permit renewing in perpetuity and can be passed on to heirs.

Ejido land is the property that a foreigner should not be buying. You may be offered a great price for a great piece of property. This land is not for private sale, as a foreigner, you may be considered a trespasser and be removed from the property. The Ejido is a property that Mexican Nationals are given the right to use by the government for living, working and typically farming.

Protect Your Investment
Make sure the title to the property is free of liens and encumbrances
Do not buy Ejido, this type of property is for Mexican Nationals
Always get your trust / Fideicomiso on the property
Pay your annual property taxes
Do not use the property for illegal activities

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