As an owner of Mexico Mortgage Loans (visit www.mexicomortgageloans.info) I truly believe that consumers benefit from gaining a basic understanding of the Mexico real estate buying process. This is the first of a few posts I will be contributing as a series titled "A guide to Mexico Mortgage Loans/ Mexico Real Estate." Todays post focuses on the terms, Fideicomiso, notario publico and esritura. If you are a realtor or mortgage broker with a potential Mexico buyer please contact me and I can send you a more detailed buyers guide that I have put together for borrowers.

What is a fideicomiso and why is it important?

A fideicomiso is a bank trust which is renewable every 50 years. It is similar to a deed of trust in the United States. Many borrowers buy in Mexico without obtaining a fideicomiso and either pay a mortgage directly to the developer or to a seller. This is dangerous since the borrower does not have legally recorded ownership of the property.

Who is the notario publico?

The notario publico is a government position of high power. Among the numerous responsibilities of a notario publico is the handling of land disputes, recording of real estate transactions and determining property taxes.

What is an escritura?

An escritura is the deed that a property owner receives in Mexico. The public registry is not as sophisticated in many Mexican markets as it is in the United States. Since this is the case, it is good to obtain a copy of the escritura from the existing owner at the time that you write a purchase contract. This document is crucial to obtaining financing and most lenders will need a copy of it.

Please continue to read future posts on this series as I discuss common mistakes borrowers make in Mexico, outline the Mexico home buying process, discuss how the process differs in Mexico versus state side and touch on how cultural differences affect the buying process.