These are some of the questions most frequently asked by those interested in purchasing Real Estate in Mexico. We have done our best to provide accurate answers to these questions.

Please feel free to if you have any questions not answered here .

CAN A FOREIGNER REALLY OWN PROPERTY IN MEXICO?

  • Yes! Over 600,000 already do throughout Mexico and since the change in the Foreign Investment Law in December 1993, foreigners can now own land in the formerly restricted zones - within 30 miles of the beach and 50 miles of the border - through a Fideicomiso. If you do not have a through an authorized Bank then you have, at best, a lease.

    Beware: Any form of "ownership", other than a Fideicomiso, such as share of a corporation, squatters (yes, you can even get hit up for this!), owning with a Mexican national partner, or any other gimmick is not legal and is trying to circumvent the law!

DO MEXICAN BUYERS/SELLERS HAVE SPECIAL DISPENSATION UNDER THE LAW?

  • Mexican developers do not have any special dispensation under the law. Whether Mexican or American owned, each development must complete the subdivision process and the only way to sell property to non-nationals is through a Fideicomiso.

    Mexican nationals own property Deeded but even they cannot own in a subdivision unless the development is properly documented and subdivided. Whether one lot or a thousand lots, in the eyes of the government whenever a parcel is "sub-divided" it must go through the subdivision process.

DOES IT MATTER WHAT BANK HOLDS MY FIDEICOMISO?

  • In 1997, Mexico changed its Banking system and subscribed to the International Banking Standards. Currently, there is only one Mexican owned Bank left. The rest are owned by different international Banks, including Citi Bank and Chase Manhattan.

    There are specific Banks authorized by the Mexican government to hold the Real Estate Fideicomiso. Authorized Banks must pass extreme scrutiny. Playa de Oro uses BITAL Bank. You, however, have the right to transfer the Fideicomiso to any authorized Bank of your choice.

WHAT HAPPENS IF THE BANK HOLDING MY FIDEICOMISO FAILS OR IS SOLD?

  • The Fideicomiso will be transferred to another authorized Bank. The Bank does not own the Fideicomiso, you do! This is where title insurance provides the additional protection necessary for 100% peace of mind - Playa de Oro provides it to all owners!

HOW DO I GET TO SAN FELIPE AND PLAYA DE ORO?

  • The following tips from Playa de Oro's developers are intended solely to assist in finding your way and are not meant to be an endorsement or advertisement of any kind. This is not a guarantee for crossing the border into or out of Mexico. We provide this information from our own experiences because we believe that by knowing what to expect the journey will be more relaxed and the experience enjoyed.

    Driving?

    • It is approximately 240 miles from San Diego to Playa de Oro and takes approximately 4 1/2 hours. To get here from Southern California take Interstate 8 to approximately 9 miles East of El Centro, California. Take Highway 111 exit south to Calexico straight to the border crossing into Mexicali. Follow the signs through Mexicali south to San Felipe on Highway 5.

      Or, continue another five miles East to the new crossing at Otay. However, this port is only open until 10 p.m.. Traffic is usually much lighter and parking much easier at the Otay crossing but the route is not as well marked to reach Highway 5 - the trick is to make sure you keep going south. When you leave the industrial/rural area and you find yourself on the one-way with the border fence on your right then turn back south or you will end up at the Calexico border crossing.

    • Visas and tourist cards are available at both crossings.

    • Playa de Oro is 6 ½ miles north of San Felipe at km #179 1/2 on Mexicali Highway 5. Driving distances from other areas to Play de Oro: Los Angeles - 350 miles Yuma - 182 miles Phoenix - 379 miles It is paved highway all the way from Mexicali to San Felipe, at least 20% of the way is a 4 lane highway.

      Should you encounter car trouble along the way, DO NOT leave your vehicle. The "Green Angeles" (Angelo Tourista) travel the 100+ miles between Mexicali and San Felipe continually. Their sole purpose is to help anyone stranded along the way and make sure that you and your vehicle reach an appropriate facility safely. The vehicles are green - thus dubbed "THE GREEN ANGELS." Because you never know when problems can arise, we recommend having plenty of bottled water in your vehicle - the desert can get very hot and thirsty!

    • Note: There maybe military checkpoints along the way!

      Though much less sophisticated, these check points serve much the same purpose as the California and Arizona state border crossings. Expect to see soldiers carrying guns and milling around. Their questions will include, "Where are you going? ""Where did you come from?" "Do you have any guns or drugs?" They may ask to look inside your trunk or RV, suitcases and glove box. At night, turn on your interior lights.

      While this can be intimidating, the important thing to remember is that it is a routine procedure and they are there to protect all of us. Check points are a part of an agreement and joint effort between the United States and Mexico to get tougher on drugs.

  • Flying?

    • El Centro, CA has several convenient flights and is just two- hours north of Playa De Oro. Yuma and San Diego are also well-located for great access to the Baja. Rental cars are available with reservations. Be sure to get the rental car company's Mexican insurance. A small international airport 12 km south of San Felipe is accessible by paved road. While it does not as yet service commercial flights it does accommodate private and charter aircraft. The airport also has the following infrastructure: runway, control tower, fuel, terminal, customs and inspection area, parking and taxi service. The tower frequency is: 118.5 SFE You can clear customs at the airport.

  • A few words to the wise:

    • Whatever you do, do not attempt to take any type of illegal drugs or drug paraphernalia into Mexico.
    • Do not transport guns or ammunition.
    • Do not carry any packages that you do not know the contents of or given to you by strangers.
    • Know who your passengers are and what they are carrying.

    Whether male or female, young or old, gun and drug runners and anyone associated with them are dealt with very harshly in Mexico. There is no immunity or help from the US Embassy and the Mexican jails are not a pretty picture.

DO I NEED MEXICAN AUTO INSURANCE?

  • You may wish to purchase Mexican auto insurance in Calexico, if you have not already done so by the time you reach the border. It is about $12 a day or may be purchased substantially less on a monthly, semi-annual or annual policy. You may also purchase auto insurance from the web as long as the car is in the USA.

    If you are driving a rental car, you must purchase Mexican Auto Insurance through your rental car agency at the time you rent the car. (Not all rental agencies allow vehicles to be driven into Mexico and their policy can change city to city. We have found that at the El Centro, San Diego, Yuma Airports, Enterprise, Dollar and Avis do allow their cars into Mexico and sell Mexican Auto Insurance.)

    You can also buy Mexican Auto Insurance here in San Felipe.

    Note: Mexico does not accept or recognize American auto insurance even if the American insurance company states it is valid in Mexico. Should an accident occur while driving in Mexico, the authorities will require proof of Mexican auto insurance. If you do not have Mexican insurance you may forfeit your vehicle, face huge fines, and be privileged to see the inside of a Mexican jail. (This is not to scare you, it's the law - just like having valid auto insurance in the U.S. is the law there also - Mexico is just a little stricter, in most cases).

    Remember, it is illegal to drive in Mexico without Mexican Auto Insurance.

WHAT CURRENCY IS BEST TO USE IN MEXICO?

  • Most restaurants, hotels, gas stations, etc., will print the amount due in both U.S. dollars and pesos and you can pay with either one. Merchants' prices are usually displayed in pesos. It's a good idea to carry your U.S. currency in smaller denominations. Often you will save money by paying in pesos so we recommend carrying both currencies. You can change money in Calexico or Mexicali at very reasonable rates.

WHAT DOCUMENTS DO I NEED?

  • A Mexican tourist card is necessary as Playa de Oro is located more than 70 miles south of the border.Getting a tourist card is an easy process.

    In Mexicali, stop at the Oficina de Federal building marked Migracion or Aduana located just left of the border gates. Parking may be a little difficult but street parking is available and double parking somewhat acceptable.

    At the Otay crossing, ample parking is available just past the Port of Entry where Immigration is housed. Once you have filled out the simple paperwork at Immigration, you will have to pay a fee of approximately $16 U.S. at a local bank (located close to Immigration), have the form stamped then bring it back to Immigration for the final documentation. At Otay, just past the port entry is a row of offices (similar to an American Strip Mall). A bank is housed in one of the far units. This process takes about ½ hour and is quite interesting.

    Tourist Visas are also available in San Felipe week days. US-born citizens will need one of the following proof-of-citizenship documents:

    • A valid U.S. passport;
    • A birth certificate issued by a federal, state, county or city governments agency in whose jurisdiction you were born.

    A photocopy is not acceptable unless the issuing authority has certified it. Also not acceptable are such documents as a Record of Birth, Baptismal Certificate, etc. issued by hospitals and churches. Naturalized US citizens will need one of the following:

    • A valid U.S. passport;
    • The original Certificate of Naturalization or Certificate of Citizenship. (Photocopies, notarized or not, are not acceptable. Neither are wallet-sized naturalization cards - Form 1-179 or other similar documents.)
    • Single parents traveling with a minor child will need to have a notarized letter from the absent parent giving permission to the minor to enter Mexico.

    Canadians and other non-nationals need the equivalent identifications.

    Once property has been purchased in Mexico a FM3 (Resident Visa) will become necessary. Playa de Oro will provide information on what is needed to get the FM3. It is a simple procedure, much like applying for a passport in the U.S. Your ownership at Playa de Oro is the only necessary requirement of investment for a FM3.

    You may hear a $1,500 deposit in a local bank is required. It may be advisable to open a Mexican checking account for your own convenience but it is not a requirement when you actually own property, which you do in Playa de Oro.

    Leaseholders and membership holders must open a checking account to prove investment in Mexico because a lease or membership is not considered an investment by the government. This investment requirement is to prove that you will not become indigent and turn to the government for assistance or support.

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