Mexican Real Estate: What You Should Know

Buying Mexican real estate is a dream situation for many people because having a house in a tropical climate in a location that has a low cost of living, makes for a great place to get away from it all. Many Americans look at Mexican real estate every year. If you are considering purchasing real estate in Mexico, there are several things that you will want to keep in mind. Here are a few tips for buying real estate in Mexico.

Mortgages are Rare

When houses are bought and sold in Mexico, most of the houses are bought and sold with cash transactions. Mortgages are not offered in Mexico. If you are buying into a highly commercialized tourist area, then you might have more luck finding a mortgage. However, cash transactions are preferred and mortgages are usually kept very low, with high rates.

Leased Land

Another popular way to convey land in Mexico is through a lease agreement. Many people mistakenly believe that there are 99 year leases in Mexico. However, anything over a 10 year lease is not legally binding. Therefore, if you set up a lease that renews every 10 years, the land owner can decide to cancel the agreement after 10 years and there is no legal recourse you can take. 

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