The Ultimate Guide to eSignature Legitimateness for Purchasing in Mexico

How to eSign a document: eSignature legitimateness for Purchasing in Mexico

Hello Jungle tribe! This is Sebastian  Papworth. I'm the co-founder of Jungle   Realtor, developer and investor in the  Riviera Maya. And today we are going to   talk about the buying process of  real estate in the Riviera Maya. A lot of people, especially foreigners, think that  you can't purchase property close to the coast or   close to the borders in Mexico. And I want to  demystify that. That is totally and absolutely   false. You can definitely purchase property close  to the coast, we actually live in the Riviera Maya   and we have foreigner clients, customers that  are purchasing real estate from us beachfront. So why do people think that you can't purchase  property in Mexico close to the border or close   to the coast? In the Mexican constitution that  was made a long time ago when there were people   conquering other countries and Mexico was a little  bit scared that they could lose territory, they   set up this article in the Mexican constitution  saying that you couldn't purchase property within   50 kilometers to the coast or 100 kilometers to  the Border. However there are two ways rounded,   there are two options for foreigners that want  to purchase property in Mexico. The first one is   through a bank trust and I'll explain how to do  it in just a second and number two is through a   Mexican Corporation. And you can set up your  U.S um LLC if you have a company in the US,   you can actually state that company as a  partner within that Mexican Corporation as well. Now let's talk about the fideicomiso.  The fideicomiso is a legal contract in   the Mexican constitution that allows a  foreigner investor or buyer to purchase   property within 50 kilometers from the  coast and a hundred kilometers to the   border. The one we're interested here  in the Riviera Maya is obviously close   to the coast because Playa del Carmen,  Tulum are inside that 50 kilometer range. How much does the fideicomiso trust cost?  There is a one-time fee of fifteen hundred   dollars to set up and establish this trust,  five hundred dollars to register it and then   you have a yearly fee of five hundred dollars  approximately, it varies depending on the bank   that you get the trust with, but it would be  approximately five hundred dollars a year. The second option to purchase a property  would be through a Mexican Corporation.   We can also help you establish a Mexican  Corporation here and the costs associated   with it would be fifteen hundred dollars  approximately to set it up and once it's   set up you would pay approximately a  hundred dollars a month for accounting. Now the next question that most buyers do is:  Which one should I pick? Should I go with the   trust or with the mexican corporation? And our  suggestion is if you're going to buy multiple   properties or you think about eventually  setting up other businesses in Mexico,   I would suggest doing a Mexican Corporation. If  maybe you just want to start with one property or   maybe even two, I would suggest getting a trust.  It's recommended to get one trust per property. Another very important question. Can the  bank or the government take the property?   Absolutely not! It's important to mention  that at all times you are the legal owner   of the property. The best way to see this trust  is just as a license or a permit that is required   for you to purchase property in this area of  Mexico. The trust is not an asset of the bank. If the bank were to see doing business another  trustee bank would be substituted immediately. Let's talk about closing costs. So you've selected  the property that you love and you have decided   if you want to do it through a bank trust a  fideicomiso or if you want to do it through   a mexican corporation. You are going to pay from  a five to a seven percent of the total purchase   price as closing cost. Now if we break it down on  parts, you would pay two percent acquisition fee,   one percent recording fee, one percent notary  fee. And then there is a cost of your attorney   to handle all the process. The attorney will  also give you a title report of the property.   Make sure that it's free of any liens or any  encumbrances and he'll make sure that the   promissory agreement or the buying agreement  is totally balanced between both parties. So now that we have demystified the myth that you  can't purchase your own property in Mexico as a   foreigner, I would love to hear in your comments:  what you like best? If you purchase property in   Mexico you would do it through a bank trust or  through a mexican corporation? Let us know if you   have interest of investing in Mexico, especially  in the Riviera Maya, Playa Del Carmen, Puerto   Aventuras, Tulum, Bacalar and the surrounding  areas of Quintana Roo, the southeast of Mexico,   the Yucatan Peninsula. Check out our website  with our amazing listings. Our website is   junglerealtor.com, also check us out on social  media: Facebook and Instagram as Jungle Realtor   and if you need help setting up a mexican  corporation or a bank trust, don't hesitate   to send us an email to info@junglerealtor.com.  Again, my name is Sebastian Papworth and thank   you very much for watching and subscribing  to our channel. Have an excellent day!