San Miguel de Allende Real Estate laws

Mexican San Miguel de Allende Real Estate laws still differ substantially from the American system and there are many crucial nuances to consider before cutting a deal for Mexican property, say experts.

While foreigners can purchase real estate in their own names throughout the country's interior, they can only buy property in Mexico's "restricted zone" -- within 31 miles of its coastlines and 62 miles of its borders -- as the beneficiary of a Mexican bank trust called a "fideicomiso." In this arrangement, the bank technically holds legal title to the real estate but its beneficiaries, who are known as the "fideicomisarios," retain the right to use, improve, sell, and will the property as they would if they were fee-simple owners.

While there's more bureaucracy involved in the trust process, it is still as good as outright ownership ... and it's a real opportunity for people from the U.S. to settle in some incredibly beautiful San Miguel de Allende Real Estate areas such as Casas San Miguelito in San Miguel, Guanajuato.

Currently most loans used to buy San Miguel de Allende Real Estate property originate through developers or sellers, who require down payments of 30 percent or more and terms of 7 percent interest or more on the balance.

In the past, the main obstacle for U.S. lenders has been Mexico's lax foreclosure laws, which virtually prohibited them from pursuing homeowners in Mexico who were in default. "That is changing," says an agent from San Miguel de Allende Real Estate Casas San Miguelito. "The Mexican government is becoming more reasonable and that is making it a little easier to foreclose and a little more worth the risk."