Ownership FAQs

Is home ownership in Mexico a secure investment?

Living at Punta Sayulita is an investment in community as much as it is a financial investment. Our residents are interested in creating a haven for themselves and their families that they can enjoy for generations. That being said, property ownership in Mexico is very secure. Foreign citizens have been able to purchase land and homes in Mexico's coastal areas since 1973 through a Mexican Bank trust in whereby the owner is the beneficiary and a Mexican bank is the trustee. The owner has all the rights that an owner of property in the U.S. has including the right to enjoy, sell, rent and improve the property.

Specifically, according to Article 27 of the Mexican Constitution, non-Mexicans are prohibited from directly holding residential real estate within 50 kilometers of any Mexican coastline or 100 kilometers from Mexico's international borders. However, as stated above, since 1973 foreigners (non-Mexicans) have been able to purchase coastal and border properties if they do so through a Mexican bank trust, known as a Fideicomiso. Essentially, it is like a trust in the United States-the bank holds the legal title to the property with all rights and privileges of ownership, including exclusive use and enjoyment held by the trust beneficiary-the foreigner.

The foreign beneficiary enjoys the right to occupy or rent the property, and may cause the transfer of title or beneficiary transfer to the property to any legally qualified person he so designates. Beneficiaries are also allowed to modify their property in accordance with local zoning regulations.

These trusts have an initial term of 50 years. They are generally renewable for an additional 50 years at any time or at the end of the initial 50-year period for a relatively small fee. The property may also be sold to a person legally authorized to own land or to another foreigner via a trust, at any time, with the foreign buyer capturing the amount of the appreciation of the property value. This process is designed to protect the rights of foreigners and ensure the transactions are legal.

Punta Sayulita's closing specialist and sales team will help you facilitate all aspects of establishing your trust and transferring title.

How is the trust established?

To establish a real estate trust, (fideicomiso), banks will charge a predetermined fee, plus a percentage of the property's value, to cover the costs of preliminary studies and the drafting of the trust agreement. The costs associated with the typical trust range from approximately $500 to $1,500 U.S. dollars to set it up and about $500 U.S. dollars per year on an ongoing basis. These fees are paid directly to the bank that serves as your trustee.

The trusts are carried as off balance sheet assets by the banks who act as trustees. The Mexican Government specifically set the trust system up to allow non-nationals the security of ownership without having to change their 1917 constitution.

Punta Sayulita’s closing specialist is available to assist our clients with entire trust formation process, making sure you and your legal advisors understand each and every step involved.

What are the property closing costs?

Closing costs to the buyer tend to be higher in Mexico than they are in the U.S. or Canada, averaging 4 - 5 percent of the purchase price which covers expenses such as notary fees, transfer tax, property registration, certificate of no liens and title insurance. Escrows are now starting to be available via private escrow companies specializing in this function and will cost approximately $1,000 per transaction.

Public Notaries are the agents of record for all transactions registered in the Land Registry Office. The notary is also responsible for collecting any taxes that may be due at closing. Punta Sayulita has pre-arranged the closing logistics with one of the area’s registered Public Notaries to facilitate the closings at Punta Sayulita.

Is Title Insurance available in Mexico?

Yes. And at Punta Sayulita, First American Title Insurance Company has issued a commitment to issue title insurance on all residences in Punta Sayulita to any purchaser wishing to procure title insurance upon sale.

What is the range of property taxes in Mexico?

Annual property taxes in Mexico, especially in the greater Puerto Vallarta area, have historically been low. Known as 'Predial', the tax is calculated as a percentage of the assessed value determined at the time of sale, paid every two months. Property taxes have historically been low in Mexico because they have never been considered a source of governmental revenue; however, this is subject to change.

What are the specifications for Punta Sayulita's infrastructure & utilities?

Punta Sayulita's infrastructure has been designed in compliance and following all local, state and federal environmental regulations. Punta Sayulita has contracted with local providers to obtain potable water, electrical services, gas, telephone, satellite and data services, and other necessary utilities for the community. Water and sewer utilities will be managed by the community's Home Owner's Association ("HOA"). In addition, Punta Sayulita will be constructing a back-up power generator to provide power to common area facilities should outside services go down.

What is the level of security for the Punta Sayulita community?

Punta Sayulita is a gated community dedicated to providing a secure living environment for its residents and guests. Punta Sayulita will provide 24-hour, guard-gated security including community/neighborhood patrol services. Community staff members will be on duty at all times and there will be a round-the-clock vehicle patrol. The current master plan calls for two security gates—the main entry gate and an alternative gate for use by construction crews and pedestrians. The main entry gate will be manned with one guard 24 hours per day, and will be equipped with an automatic scanning device including video recall providing documentation of all visitors to Punta Sayulita. Only authorized personnel, Punta Sayulita residents, and guests will be permitted onto the property. Members will be given a radio transponder or other vehicle identification for each of their vehicles that will inform security that they have access to the property. All guests will need to be registered in advance with Punta Sayulita Security to gain access to the property.

Will Punta Sayulita be governed by a Homeowners Association?

Yes. Punta Sayulita's Home Owner's Association will provide for maintenance and landscaping of the common areas as well as certain other functions such as security and architectural design review.

Will Punta Sayulita provide Property Management & Rental Services?

Yes. Owning and maintaining a home at Punta Sayulita is a completely worry-free experience. While you are away, Punta Sayulita's Residential Services will look after your property to ensure that it is well-maintained and secure. Prior to your return, we will arrange to have your home cleaned, your kitchen stocked, your climate control system adjusted, and fresh linens placed on your beds. Punta Sayulita's Residential Services will provide a complete spectrum of services for owners including housekeeping, residential landscaping, bill payment services, shopping, transportation, and much more.

For homeowners choosing to rent their homes, Punta Sayulita will offer a full-time professional rental program that will manage the marketing and rental of your home to qualified renters. Owners in the program will be required to enter into a Rental Agreement.

Will home furnishing packages be offered at Punta Sayulita?

Yes. Punta Sayulita has commissioned Rachel Horn Interiors to create 100% turn-key residential décor packages that capture the mystique, excitement and laid back energy of the Punta Sayulita lifestyle. Purchasers will have the option to purchase the residential décor packages during the purchase process.

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