Buying Real Estate
on
Cozumel Island, Mexico
Some Answers to Frequently
Asked Questions
- Are foreigners permitted to acquire
property in Mexico?
Yes, foreigners may acquire property in Mexico.
However, if the property lies within a "restricted zone" such as along
borders or in coastal areas, it must be purchased via a legal instrument
called a "fidei comiso" or, bank trust. This trust gives you, the
beneficiary of the trust, the same rights and obligations as full
ownership would provide.
- How do I establish a fidei
comiso?
A fidei comiso must be established and recorded
by a "notario" or, notary public. Your real estate agent should be able to
recommend a notario to establish the trust as well as a bank to administer
it. Notarios and banks charge competitive fees for their services and the
fees depend partly upon the stated value of the property. Most real estate
agents work with one notario who works with one bank but are, in fact,
able to work with those that you choose. Check out your options and get
estimates on fees from a few different notarios and
banks.
- What information must I provide in order
to establish a fidei comiso?
You'll need to provide basic information such
as name, address and phone number in the US (or other country of origin),
occupation and nationality. If married, the same information will be
required of your spouse. You'll need to provide a copy of your passport
and tourist visa. The name, nationality, address and phone number of any
secondary beneficiary to the trust will also be required.
- How much does a fidei comiso cost to
establish?
Again, costs vary from notario to notario and
from bank to bank. Your real estate agent should help you obtain estimates
from notarios and banks regarding the fees for the establishment and
yearly maintenance of the fidei comiso.
- How do I find a reliable real estate
agent who will protect my interests?
Ask lots of questions and interview several
different agents and/or brokers. Business operates at a slower pace in
Mexico so try not to be in too much of a hurry but you can insist that
your agent communicate with you regularly and keep you posted during every
step of acquiring a property.
Real estate agents will tell you that you don't
need a lawyer involved in real estate transactions. This is technically
true and your real estate agent should be able to translate negotiations
for you. However, if you feel more comfortable that your interests, not
the interests of the seller, will be protected by hiring your own lawyer
then do so. There are English-speaking lawyers on the island knowledgeable
in real estate transactions.
- How much does an average home on Cozumel
cost?
There really is no "average" home on the
island. Since there is not an accurate property appraisal system or
formula, property is priced based on what the seller and real estate agent
feel the property will sell for. There are homes in town priced from
around $75,000 US Dollars but be prepared for lots of repairs and
renovations at this price. Though bargains do indeed exist, a more
realistic price for a home in town would begin around $125,000 US Dollars
or more unfurnished. Beachfront homes, if you can find one for sale, start
at around $500,000 US Dollars. The best way to gauge prices on the island
is to look at many properties and then look some more. This is the only
way to truly get a feel for the types of homes available and what is a
reasonable price to pay for one.
- Can I obtain a listing of homes currently
on the market?
A reliable agent should make a list available
to you. It's best to be specific about a price range when requesting
listings but be flexible too as you may find spending a little bit more
will get you a lot more in the long run.
- What if I want to buy a home now but I
don't plan to live in it until I retire?
There are plenty of property management
companies on Cozumel who can care for your property in your absence.
Again, ask lots of questions and interview several different companies.
Find out exactly how your home will be maintained and all the costs
involved. Property managers should also be able to put your home into
their vacation rental pool if you so desire. Additional fees will be
involved in the rental of your home and you should receive a written
contract which clearly states all expenses, fees and commissions that you
are expected to pay as well as outlines how your home will be cared for.
The property manager should also provide you with detailed monthly
statements of your income and expenses along with original
receipts.
One, don't be in a hurry. Visit the island and
conduct your interviews of real estate agents and/or brokers until you
feel comfortable with one - or more. Remember, you don't have to depend on
just one agent. Most agents have their own listings and some do not share
theirs with others so use all the available resources.
Two, talk to friends and acquaintances living
on the island. Make a point to get to know them and let them get to know
you. "Locals" often know of properties for sale which are not listed with
any Realtor. Later, you can obtain a lawyer to be involved in negotiations
and in supervising the purchase transaction. You do not need a real estate
agent here to buy or sell property. All transactions can be handled
between the buyer, seller, and notario.
And three, be prepared to make more than one
trip to the island to find that perfect home. Try to be prepared to make a
"spur of the moment" trip to the island should your Realtor or agent call
you with a new listing that fits your needs and price
range.
****Note from author: After receiving
countless requests for information on buying real estate and building
homes on Cozumel Island, I decided to provide this question and answer
list as a free service to those interested. I've written this based on
questions which I am most frequently asked as well as my own personal
experience as a foreigner buying property on Cozumel. Though I've
based this article upon a great deal of research, I am not a real estate
agent and do not represent myself as, or claim to be a real estate agent
or any kind of authority on real estate transactions. I hope the
information I have presented here is of help to you in your pursuit of
your island dream home. If there's something else you'd like to read about
in additional articles please let me know.
For reservations and
information, email us at homes@cozumel-vacation-rentals.com
or call our US
Reservations Office
(713) 523-1013 Mon-Fri, 9am to 3pm
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