Title insurance is available in Mexico.   A title policy, issued in conformance with Mexican law, will protect the amount of the buyer’s investment.   In order to obtain a policy of title insurance, a title investigation must be carried out.   This investigation will report potential issues and problems.   If none are found, or if the issues are solvable, a commitment will be issued and the policy will be written at the time title transfers to the buyer who ordered the investigation.

If the title company reports problems that cannot be resolved, the potential buyer will at least be fully aware of the risk and can decide whether or not to proceed with the purchase.   Some problems are not immediately known, however.   When this happens and, if a problem arises at any time during the ownership of the party registered on the policy, it is necessary only to contact the title insurance company who is then legally bound to fight the issue and, in the event it does not win, owner is compensated up to the amount declared in the policy.

Title insurance is NOT an expensive proposition.   The title investigation cost will depend upon the area where the property is located and can range from 450 USD. to 3,000.USD.  Actual cost will depend upon whether or not a title data base has been created.   When a new data base must be created obviously more time, and hence, greater cost, will be involved.  The premium, a one time payment, will run from 6.00 USD to 7.50 USD per 1,000. USD valuation, plus tax.  Thus an insurance policy on a 200,000. USD property can cost $1,200 to 1,600. USD. which seems to be a small amount to pay for the security afforded.  The prudent buyer will always include the cost of title insurance investigation and policy in his closing budget.

Two US companies have title policies approved in Mexico for use on properties located in Mexico.   It is important that this option be made available to any and all considering a purchase of property in Mexico.

Thanks to Linda Neil, The Settlement Company

BUYING REAL ESTATE IN MEXICO:  QUESTIONS AND ANSWERS

Q: I’ve always heard that foreigners can’t buy coastal property in Mexico, is that true?
No. While it was once true, times have changed. Prior to 1973, foreigners were not allowed to hold legal title or exercise direct rights to real property in an area within 64 miles of Mexico’s borders and 32 miles of its coasts. But laws passed in 1973 and1993 have made it possible for foreigners, foreign firms and Mexican firms with foreign participation to acquire interests in coastal real estate through a bank trust (Fideicomiso).
Q: Who is involved in this bank trust?
Three parties. The seller of the property is the Trustor. The bank is the Trustee. (Fiduciario), and the buyer, or Beneficiary (Fideicomisario).
Q: How does the trust function?
Title to the property is transferred to a trust with a Mexican bank acting as Trustee. The Trust Agreement is formalized by the issuance of a permit from the Mexican Ministry of Foreign Affairs. The lot or home buyer is designated as Beneficiary in the Trust and the beneficiary rights are recorded in the public record by a Notary Public.
Q: What are my rights as a buyer?
The trust is a legal substitute for fee simple ownership, but in this case, the Trustee is the legal holder of the property. As Beneficiary, you have the right to sell your property without restriction. You may also transfer your rights to a third party, or pass it on to named heirs.
Q: Is the trust renewable?
Yes. According to the Foreign Investment Law passed in 1993, trusts can be renewed for an indefinite number of successive 50 year periods. In effect they run in perpetuity.
Q: If at a later date, I decide to sell my property can anyone buy it?
Yes. If the buyer is also a foreigner, you simply assign beneficial rights. If the new buyer is a Mexican National, you can instruct the bank to endorse the title in favor of the buyer.
Q: If the buyers is a foreigner, is his interest limited to the balance of my 50 year trust?
No. Upon application, a foreigner automatically receives his own renewal 50 year permit. This, however, is not mandatory.
Q: Do many foreigners currently own coastal property in Mexico?
Yes. Today thousands of foreign owners enjoy their ocean side resort property; many have benefited from the appreciation of their property.

More to follow…

Violent Deaths in Mexico: Everything Is Not as it Seems
In recent months the debate about violence in Mexico has heated up significantly. Most news channels have been giving a broad coverage on the facts of crime, which are usually focused on the issue of combating organized crime.
When it comes to human lives, it is always difficult to speak coldly about figures. But when we need to know what really is going on, in terms of crime, we can do nothing but refer to them.
The indicator which measures the violence in a country is the number of violent deaths per 100,000 people. This indicator has the advantage of allowing us to compare figures between countries with different population sizes.
This indicator is highly reliable and comparable between countries of the world, since in all countries it is necessary to produce death certificates to account for a death caused for any reason whatsoever. In the case of violent deaths, there is no possibility that this indicator, unlike others, observe significant levels of sub report because violent deaths are registred by law in all countries.
According the available indicators, Mexico as a country has a general level of 13.3 violent deaths per 100.000 inhabitants, making it one of the safest countries in Latin America. Levels in Argentina, Brazil and Venezuela surprised us since they are at high as 16.8, 36.7 and 44.9 deaths per 100,000 population, respectively. Brazil and Venezuela are two and almost three times more violent than Mexico, respectively.
Moreover, if we compare this indicator with some U.S. cities we will see that our country is much better than we would expect to imagine. Comparing Mexico to Washington DC, New Orleans or Detroit the difference is very big, violence is a tangible problem in those cities. And without going too far, Mexico City has 9.8 violent deaths per 100,000 people, far below of other major cities like Houston, with 12.5, Phoenix, witn 12.6, and Los Angeles, with 17.1. It is true that there is a big problem in Ciudad Juarez and three other municipalities, which altogether sum up to more than 50% of violent deaths in Mexico. The rest of the 2,396 municipalities which form the country have relatively low violence levels.
According to figures provided by the government of Mexico, the battle against organized crime has caused 24,826 violent deaths in the last four years. As it is often said, inside and outside the country, it has turned Mexico in an extremely dangerous country to live. A country that sadly some have said is in “civil war” and that is a “failed state.” This is definitely not true.
Although a number like 24,826 seems pretty high, it is time to put it in context. This number represents a little over 6,000 deaths per year on average. Each year, 20,000 people die in Mexico in road accidents and more than 50,000 because of diabetes. If we look at violent deaths to compare, in the U.S. 6,000 veterans commit suicide every year. So, during the same period, the same amount of persons have died as a consequence of the U.S. post-war trauma, as the war on drugs in Mexico.
And while there is some exposure about this phenomenon in the U.S. media, it does not reach the same exposure as in Mexico. Here we are in a frenzy of daily information that the only thing it communicates is the presence of violence. Our conversations with family, friends, office, restaurants, are all about violence. We entertain ourselves and entertain others, including foreigners, in the idea that violence in Mexico has reached unsuspected levels. And there’s no evidence to support that. It is only our perception. We find ourselves filtering and searching all events and news, looking for those that speak of violence. And likewise, those are the news we speak about. It is a conversation, just a conversation.
This has affected the levels of tourism, investment and economic prospects for the country, and it is not supported by real figures, data and facts, it is only a perception. The good news is that we have the power to change that perception. It just takes to take a look at the data and facts.
Ultimately, the best way to combat any violence is to leave the fear that is generating this behind and doing something that makes us confident. Entertain ourselves and entertain others with the fact that violence stops us, it paralyzes us. What would be possible if we focus on facts and data to make us and others see that we can be responsible for creating an environment to grow and prosper instead of creating a violent space with our everyday conversations? You have this power, do it for North America and in the end you will be doing something positive for yourself and for others.

Thanks to Alexander Ogilvy, President AMPI, Loreto for providing this article

Outdoor activities galore here in Los Cabos. Take your pick. World class sports fishing. Some of the best golf courses on the planet. Hunting. And racing Baja style!

promo Dos mares 500 2010 de RIGOS VIDEOS from army66 on Vimeo.

While Jim Cramer chose San Miguel de Allende, there are 1,000s of other safe real estate investments in Mexico. For example Los Cabos. See more below.

For more information about investing in real estate in Los Cabos visit us at www.caborealty.com

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Over the last few years some people postponed investing in real estate in Mexico.  Some because of the biased and slanted news stories regarding violent crime, and some because they’ve been waiting to wait for prices to fall to their lowest.  Other posts on this blog have addressed the media bias regarding drug related crime in Mexico.  Suffice it to say, most of the crimes have been confined to less than 5% of the country and most of it occurs along the Mexican/United States border leaving the rest of Mexicans residents to get on with the activities of their daily lives. Working, going to school, shopping, going to school and so on.

In spite of the onslaught by the media, 5,000,000 Americans visited Mexico in 2010. Up by 20% over the previous year. Mexico remains the #1 retirement destination in the world for Americans and currently 1.5 million to 2 million US and Canadian citizens own property and live full or part time in Mexico. Because of the aging Baby Boomers this number will grow exponentially as part of what has been called the “Largest southern migration to Mexico of people and real estate assets since the Civil War.” By the most conservative estimate 6,000,000 United States and Canadian Baby Boomers are on their way to owning property in Mexico over the next 15 years. Now is the time to get in front of this real estate investment tsunaimi.

As a Realtor in Los Cabos, and Associate Broker with CaboRealty, I need to keep my finger on the pulse of  Los Cabos real estate. Here are some statistics taken from our Multiple Listinlog Service.

• Year to date (5/8/2011) number of  condominiums sold in Los Cabos,  45. YTD sales in 2010, 24. Almost twice as many sales  this year.
• Average price of a condominium YTD 2011, $$329,093. Average price of condominium YTD 2010, $665,321.  A reduction in sales prices of more than 50%.
• Number of homes sold YTD 2011, 81.  Number of homes sold YTD 2010, 50.
• Average price of homes sold YTD 2010, $996,494. Average price of homes sold YTD 2011, $438,382.

Prices are down and the number of sales is up. Both substantially.  The trend says more and more buyers are coming back to the market. Trying to time the market is difficult at best. Waiting can be costly. Start your due diligence now before prices start back up. For some of the reasons to buy in Los Cabos, Mexico, watch the following video. For help with your real estate needs in Los Cabos, visit CaboRealty.com.  With more than a dozen years in business and millions of dollars in sales we are here to help.

These people are true heroes. They risk their lives without question to rescue these magnificent creatures. Baja Expeditions, we at CaboHomes take our hats off to you.

FOR IMMEDIATE RELEASE

CONTACT: Seth Romans
Cabo Expeditions
seth@caboexpeditions.com.mx
(624) 143-2700

CABO EXPEDITIONS RESCUES HUMPBACK WHALE!
Trapped Whale in Fish Net Saved…

Cabo San Lucas, Mexico — Each year, the migration of thousands of whales from the cooling arctic oceans migrate to the warm waters surrounding the Baja Peninsula where the Pacific Ocean meets with the Sea of Cortez. Annually, from the beginning of December through approximately the second week of April, Los Cabos becomes the Mecca for whale watching on water or sightings from land at local resorts or hotels.

These incredible mammals celebrate over a 10,000-mile journey each year and then repeat this natural process. Once in a while, a whale will get tangled in a fishing net dozens of miles from the shore. For some time now, fishermen and their nets have been monitored in Mexico by a variety of governmental agencies who implement standardized regulations. Fishermen always abide with the fishing regulations but sometimes, a whale will not recognize the hazard and gets tangled inadvertently.

On the morning of February 8th, 2011, an unfortunate whale probably miles upon miles from shore was caught up in a fisherman’s net. Oftentimes, a whale’s natural tendency can be to swim to shore whereas they may beach themselves. In this instance, it seemed very likely that this adult-male Humpback whale was headed to the shore with a 75% chance of drowning or being beached had Cabo Expeditions and the Mexican Navy not gotten to it in time.

Around 10 A.M. local time, a number of phone calls were made from local fishermen on their fishing boats and other whale watching companies to Cabo Expeditions with a whale in distress. Immediately, the SCUBA diving, boat captain and marine biologist teams prepared themselves. Administrators at Cabo Expeditions notified the Mexican Navy who works in conjunction with whale-rescue efforts.

Approximately 1 ½ miles from the shore, in front of the RIU Hotel in Cabo San Lucas, an adult Humpback whale weighing approximately 35 tons with a length of 40 feet had its torso down to the tail wrapped in fishing net. Cabo Expeditions and the Mexican Navy were ready with a total of 10 people. One team of divers works in unison with another team who place buoys around the whale as it surfaces and dives down. The buoys are tied at either of end of a rope, widthwise. Light-weight hooks are then attached to either side of the net eventually allowing the whale to try and swim free. The process and cutting away of the net has to be repeated until the whale is completely freed.

By 12 noon today, Cabo Expeditions along with the Mexican Navy had successfully freed the fortunate Humpback whale. Oscar Ortiz, owner of Cabo Expeditions is quoted as saying, “Over the last 7 years now, we have been prepared as a company internally to help save and ultimately rescue whales. Thankfully, we have also been blessed by saving a total of 10 whales’ lives. The protection and preservation of these amazing animals is both our passion and mission in Los Cabos.”

For more information about Cabo Expeditions, please call 011 52 (624) 143-2700 or visit us at www.caboexpeditions.com.mx. The launch of our new website will be in March, 2011.

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An Invitation from Your Friends at Cabo Homes

Come visit the Baja in the Springtime – it’s the same great place you remember!

Springtime is one of the most popular times for North Americans to travel to  Baja California Sur. The weather is a welcome respite from the snow and cold of their home towns. Our sunny skies and welcoming beaches are enjoyed by tens of thousands of visitors between January and June.

The early months are great for exploring the mountains of the Sierra Laguna or Sierra Gigantica. Mountain trails lead to fantastic vistas and hidden waterfalls. The mountain pueblos remain green from summer rains through much of the year and can be very beautiful with springtime brings blossoms. If you are not of the type to sling on a pack and explore there are a vast number of off-road trails in a wide degree of difficulty to explore responsibly. Equestrians can enjoy the backcountry on horseback and with luck come upon a herd of deer.

Baja is one of the number 1 RV destinations outside the US. Although the days of parking your camper for free on the beach are fading, it is a classic image of Baja to see the gringos enjoying the sand spit at Ligui, or the beach at Santispac or Mulege. Baja’s RV parks are very affordable for those who wish a little more convenience.

If you like eating, and who doesn’t, Baja California Sur has a lot to offer you too. The growth of Baja in the past 10 years has brought an evolution to Baja Cuisine. If you love the corner taco stands you will still find lots of them. Licensing and health requirements have made eating curbside less of an ‘adventure’ shall we say, and the food is just as delicious as you remember. On the more elegant end of dining, the fine and even exotic restaurants have spread across Baja Sur. I have enjoyed excellent meals at the variety of new restaurants from Cabo to Loreto.

For the adventure vacationer few places present the variety of outdoor activities as does Baja California Sur. Los Cabos offers a wide variety of high power activities including canopy rides on a cable, jet skis, ATV and dune buggy adventures.  La Paz and Loreto offer many eco-travel options to swim with sea lions or kayak the protected islands of the Sea.

Carnaval La Paz will fall later this year, from the 3rd to 8th of March, moving with the Easter calendar. Every year I have been in La Paz the event has grown larger and more sophisticated. This year should be no different and is something everyone in Baja should enjoy at least once.

Whale watching is a very big attraction to Baja from December to late March with whales being frequently seen all along the Pacific coast. Whale watching expeditions are available in Lopez Mateo, San Ignacio and other places on the central coast as well as shorter tours in Los Cabos.

Although fishing is one of Baja’s activities that peaks later in the year, many folks still make Baja a destination for reeling in the big ones. By early March fishing is picking up and yellow fin become a favorite catch. Diving also peaks later in the year but the water is easy for California divers to climb into any time of year.

As for places to stay few places I’ve traveled offer such a wide spectrum of accommodations. You can still spend as little as $300 pesos ($25) for a clean and simple room for the night as well as resorts which offer all-inclusive luxury from hundreds to thousands of dollars per night.

All of these great businesses that offer you an opportunity for a memorable vacation have one thing in common; They miss you!

With Spring being the most popular travel season the next six months represent a large percentage of the business done each year. Just like everywhere else, the economy has been slow and the money that used to flow from real estate and construction has dried to a trickle. With the broad brush of violence with which the media has painted Mexico many travel providers don’t remember their last good year. Yet Baja California Sur is one of the safest states in Mexico, well removed from the cartel violence.

Now, I don’t mean to slight our brethren to the north in Baja California, but the Baja California Sur tourist season is springtime. The last few years have taken their toll and many fine travel providers, our clients and our friends have dramatically downsized or shuttered their doors.

These travel providers aren’t looking for a gigantic Federal bailout. It is even a joke to even think it would be forth coming. They are looking for you to come back and enjoy the value of their hospitality. Travel destinations world wide are competing for the fewer number of travelers, when thinking about your vacation, think about Baja. Shop your vacation for the best values and you will find hospitality businesses eager to welcome you offering an excellent value for both your money and your valuable vacation time.

I’m sure many of our readers have their favorite Baja hotel, restaurant or activity provider you think of as your friend. Right now many of them really need you to come pay them a visit. That’s what friends are for, isn’t it?

On behalf of all Baja California peninsula businesses, our clients, our friends and all others, we invite you to come rediscover Baja. (Excerpted from BajaInsider)