Before you reach the closing day, you will want to make a decision as to how you will "hold title" to the property. This decision has legal, tax and estate planning ramifications. Therefore, it may be prudent to consult an attorney or certified public accountant (CPA).

The following information is supplied for informational purposes and should not be relied upon as legal definitions.

• A single individual who has not been legally married.
• An unmarried individual who was married and is now legally divorced.
• A married individual who wishes to acquire title in his or her name alone. At the time of closing, the spouse of the buyer will be required to specifically disclaim or relinquish his or her right, title and interest to the property.

• A living trust is created while an individual is alive and gives the individual control of the distribution of his or her estate. The individual transfers ownership of his or her property and assets into the trust.

Enables each partner in the property to sell, lease or will to his/her heirs that share of the property belonging to him/her.

• Who can take title? Any number of individuals.
• Ownership Division: Any number of interests, equal or unequal.
• Who holds title? A separate legal title to his undivided interest is held by each co-owner.
• Possession: Equal right of possession.

Property owned by multiple individuals where if one of the owners dies, the remaining owners acquire the share of the deceased owner automatically.

• Who can take title? Any number of individuals.
• Ownership Division: Interests cannot be divided.
• Who holds title? There is only one title to the whole property.
• Possession: Equal right of possession.

Property owned equally between a husband and wife. Each must sign all agreements and documents of transfer.

• Who can take title? Only a husband and wife.
• Ownership Division: Interests are equal.
• Who holds title? Similar to title being in a partnership, title is held in "community."
• Possession: Equal right of possession.

A corporation is a legal entity, created under state law, consisting of one or more shareholders but regarded under law as having essentially the same as those of an individual. The entity has continuous existence until it is dissolved according to legal procedures. Land owned by a corporation cannot be attached for personal debts or judgments rendered against any of its shareholders.

A partnership is an association of two or more persons who can carry on business for profit. A partnership may hold title to real property in the name of the partnership with partners having an equal or an unequal interest in the property.

A trust is an arrangement whereby legal title to property is transferred by the grantor (or trustor) to a person called a trustee, to be held and managed by that person for the benefit of the people specified in the trust agreement, called beneficiaries.

Owning property in Mexico can be a simple process when you have professional assistance guiding you in the right direction.

First and most important, you need to make sure that the property you are purchasing has a clear title issued buy a Notary Public and properly registered at the Public Registry of the Property.

The closing for your acquisition of residential property in Mexico will take place in two stages.

Once you have agreed on the purchase of a property, and terms and conditions have been agreed upon by both parties, you will sign a “Promise of Trust Agreement”. it contains all the same pieces of information as a Buy/Sell Agreement and includes information on the content of the trust agreement that will hold title to your property. You should make sure that you review the Buy/Sell Agreement in detail and you can always consult an attorney before signing such document. This Agreement will call for you to make an initial payment on the purchase. It is not earnest money as in the U.S., but rather an integral part of the payment agreed upon with the developer for the purchase of your property.

Final closing will take place at a Public Notary. The Notary Public in Mexico is a government appointed attorney, who takes care of the transfer of ownership.

Make sure you obtain documents evidencing your purchase before the closing, so your counsel can review them. Ask your real estate broker for assistance on these important issues.

The Mexican Constitution prohibits foreigners to make direct acquisition of land and waterways within a limit of 100 kilometers (60 miles) from the border front and 50 kilometers (30 miles) along Mexico’s coastline; such regions are known as "Restricted Zones", also referred to as "zona prohibida"

When a foreigner wishes to acquire the right of using a property within this restricted Zone, he can do it thru a Trust with a Mexican Bank, who will purchase it and retain it in trust for a term of fifty years, provided the Ministry of Foreign Affairs grants the necessary permit, renewable every fifty years. The bank does not hold the property as an asset, in no way this is a lease.

Upon acquiring a property in Trust, the Bank becomes its new legal owner, subject to the clauses of the contract granting the beneficiary the rights to use, exploit, rent or sell the property or transfer said rights to a third party the formalities involved are straightforward and simple.

At the end of the trust´s term which, as mentioned before is of fifty years, the beneficiary has the following options:

1. If there is no change in the Mexican Government's present policy, the trust agreement will be renewed for an additional period of fifty years.
2. No matter that alternative results, the beneficiary´s interests will be adequately protected. It should be pointed out that the beneficiary is, at any time during the term of the trust agreement or at its termination, can arrange for the sale of the property to any person legally qualified to purchase the Real Estate.
3. If the property is sold to a Mexican National, the trust shall be terminated as Mexicans have no restrictions to acquire title.

1. THE TRUSTOR. A Mexican Citizen or a Mexican corporation with no foreign participation; the original owner of the property, it is the party who places the property in trust.
2. THE TRUSTEE. As indicated previously, the trustee is the Banking Institution which holds the trust over the land for the benefit of the beneficiary.
3. THE BENEFICIARY. The first beneficiary is normally the promoter, who acquires beneficial rights in order to develop the property and sell its beneficial interest to other parties in turn. The final Beneficiary is a foreigner, since Mexican important issues.

1. Title of the property (deed)
2. Map of location of the property
3. Receipts of the payment of real Estate Tax.
4. Permit of Foreign Affairs.

There are several unusual costs that you will incur in the purchase of your Mexican home. These costs are unusual in the sense that they are different from, and in some cases additional to, those that you would incur in the purchase of a property in the U.S. You should expect your total closing costs for the cash purchase of a property in México to be anywhere between 3% and 5% of the registered value of your property.

The largest of the unusual costs that you will incur in purchasing a home in Mexico are the Federal Transfer Tax, the Mexican Notary fees, and the cost of recording your public deed. The Federal Transfer Tax consists of 2% of the reported value of your property. The reported value will have to be higher than the appraised value and has to be agreed upon by the parties involved. The Mexican Notary fees vary by area, but expect to pay anywhere between 1% and 2.5% of the purchase price. The inscription fees also vary by area but are usually 1% of the purchase price. The Federal Tax, Notary fees, and inscription fees are paid directly to the Mexican Notary who in turn submits them to the corresponding authorities.

Some of the small and unusual costs that you will incur include: obtaining a permit from the Mexican Foreign Affairs Ministry, trustee fees, and inscriptions in the Foreign Investment Registry. The Foreign Affairs permit and its processing should be around $1,000 and the recording in the Foreign Investment Registry is accomplished through payment of a nominal fee. The trustee fees in this case is limited to the regular annual fee, and varies depending on the bank, it can go from $500 dollars to $800.00 dollars per year.

There are certain normal expenses related to closing the sale of a house. These costs are often split between the buyer and seller, as instructed in the sales contract. Many are conventional, but there are nuances to each, so you'll want a real estate expert in Quintana Roo to help lead you through the transaction.

At closing, the following taxes are usually collected:

• Property Taxes
• Transfer Taxes and Recording Fees

Insurance fees due at closing:

• Homeowners Insurance
• Hurricane Insurance (optional)
• Title Insurance

Sellers: As we negotiate your transaction, not only will I work to get the very best sales price, but I'll also campaign for reduced closing costs. And once we've arrived at an agreement, I'll describe in detail the closing costs so you know exactly where your money is going.

Buyers: When purchasing a property in Mexico, you'll receive an estimate closing costs within one week of submitting your documents to the Public Notary. The estimate is based on the value of the property. An appraisal must be done before transferring ownership, by an official appraiser who will take the Municipal value as a base. I'll be glad to look over the closing cost with you, answering your questions and highlighting any estimates that appear to be out of the ordinary.