Are you planning on purchasing a property on the Riviera Maya but you don’t know who to trust? As a non-Mexican, it can be a little complicated so let us clear this out for you!
Purchasing a residence is an important transaction that must be done with precaution.
When buying a house or a condo in Playa del Carmen, Puerto Morelos, Cancún, Tulum or anywhere else near the Mayan coast, there are certain rules to follow.
The good news is, these rules benefit you! And Trust Accounts are what you can trust!
What are Trust Accounts?
In Mexico, there are two types of trust or escrow accounts, both commonly called fideicomiso. The first type is mandatory for purchasing a house near any Mexican coast, within 50 km of it, for foreigners and Mexicans.
The second type is put in place by the seller, usually the developer, to protect and guarantee all financial transactions. From reserving the unit with a deposit, putting a down payment or simply going through with the purchase. That means that the seller has to use the trust account to record all transactions, leaving the customers at ease. Your money won’t magically disappear, no fraud allowed!
In all cases, there is a business relation with three parties. You – the buyer, a Mexican financial institution or a bank and the seller. The bank is the intermediary between you as a purchaser and owner and any related financial transactions with the property.
With the first type of trust account, the seller will pass the title or the deed of the property on to the trust, the trust is held by the bank and will hold the deed of the property for you. They are not allowed to take decisions on any of those transactions for you. You are in total control. You can rent, renovate, sell, do anything you want!
Furthermore, it’s important to mention that your property will never be part of the bank’s assets, ensuring your deed will never be sold or depreciated, even if the financial institution were to go bankrupt. If that were to happen, the trust account would be transferred to another certified Mexican bank or financial institution, always protected by the government. Trust accounts can be trusted!
A fee is charged for the fideicomiso and let me tell you that it is worth paying for your peace of mind. This secure option will allow you to fully live your dream of owning a property on the Riviera Maya!
There are specific banks and financial institutions that can manage a trust account, and all of them are shielded by the Mexican Government. You can trust all of them!