Puerto Vallarta Real Estate - Market Status
Puerto Vallarta’s real estate market has driven forward due to new developers providing a wide range of products for the sophisticated buyer and real estate investor. These developments range from small single family home builders to large developments offering a wide range of real estate opportunities. Many are actually small communities providing luxury amenities such as golf courses, tennis courts, and beach clubs.
Owning property in and around Puerto Vallarta becomes easier every year. Buyers are flocking to the Puerto Vallarta area making their homes in single-family projects to gated communities to high-rise condominiums dotting the surrounding Puerto Vallarta landscape.
Time-shares, full and part-time (fractional) real estate ownerships are also available. Mortgages and title insurance are now available to Puerto Vallarta real estate buyers as well.
Puerto Vallarta Real Estate - About Buyer Representation
Mexico currently does not have licensing requirements agents representing buyers or sellers of Puerto Vallarta real estate.
Many Puerto Vallarta real estate agents and brokers belong to AMPI, the Mexican national organization of real estate professionals that provides on-going education and sets ethical standards for its members. Membership is not mandatory and even though some agents or agencies choose not to join this does not mean that they do not qualify as competent real estate service providers.
Buyers or sellers of Puerto Vallarta real estate should perform their own research on the real estate professional they intend to use.
Puerto Vallarta Real Estate - About AMPI
AMPI, the Mexican Association of Real Estate Professionals, A.C. is comprised of an exclusive group of real estate brokers and agents in the Republic of Mexico who are committed to upholding the highest standards of practice of the association's Code of Conduct. AMPI membership denotes a guarantee of professionalism, moral solvency and ongoing professional education.
AMPI chapters sponsor various meetings, conferences and educational programs for its membership and for the public.
AMPI's National Directors and Regional committee heads actively participate in the legislative process pertaining to Real Estate issues with Federal, State and Municipal authorities. As well, AMPI has an Honors and Justice committee to self-regulate its members, as there is no required licensing at this time in Mexico for real estate agents.
Puerto Vallarta Real Estate - Foreign Ownership
The Mexican Constitution regulates the ownership of land and declares that ...within a zone of 100 kilometers from the border or 50 kilometers from the coast, a foreigner cannot acquire the direct ownership of the land. These areas are known as Restricted or Prohibited Zones. However, the latest Mexican Foreign Investment Law, which was ratified on December 28, 1993, allows a foreigner or foreign corporation to obtain the rights of ownership through a fiduciary trust known as Fidelicomiso, the equivalent of a US beneficiary trust.
The purchase of non-residential Puerto Vallarta real estate can also be achieved through a Mexican corporation which, under certain conditions, can be 100% foreign-owned.
Real estate purchsed through a Mexican corporation must be registered with the Foreign Affairs Ministry and be used for non-residential activities. In other words under the above conditions foreigners can directly acquire properties for tourist, commercial and industrial use.
Any foreigner or Mexican National can constitute a Fideicomiso (the equivalent to an American beneficial trust) through a Mexican bank in order to purchase real estate anywhere in Mexico, including the Restricted Zone.
The trustee is responsible to the buyer/beneficiary to ensure precise fulfillment of the trust, according to Mexican Law.
Based on a present tariff, the bank charges the person requesting a Fideicomiso an initial fee (approximately $500 US) for the drawing up the agreement and the trust, plus a percentage depending on the value of the real estate property.
The bank also charges an annual fee (depending on the value of the real estate property) to cover its services as a trustee.
Puerto Vallarta Real Estate - Things to Keep in Mind
- Understand that Mexico is a foreign country with a unique set of laws that must be adhered to in order to acquire recognizable rights in real estate property.
- If you are purchasing in the restricted zone, you must buy through a Mexican Bank Trust (fideicomiso).
- Puerto Vallarta real estate agents are not licensed in Mexico and escrow as we know it does not exist. It is imperative to use qualified professionals including a trustworthy Mexican agent or attorney.