Real Estate

Mexico´s Foreign Investment permits foreign ownership of Mexican Real estate within 100 kms from the border and 50km from the coastline, as long as the property is purchased by a Mexican company and the company uses it for industrial, commercial or leisure purposes companies are free to purchase or lease anywhere within the country.

For companies who choose the production sharing advantages of an agreement with a subcontractor the location decision is made by the subcontractor. In the case of a shelter agreement the client may influence the final decision of the shelter operator and in the case of a wholly owned independent corporation the real estate decision is totally up to the parent company.

Construction Permits:

In establishing a manufacturing facility there are a few government permits required, these typically include:

  • Environmental permit. Environmental approval by the State environmental agency that monitor pollution and waste management.
  • Land use approval. Ensures that the site is suitable for manufacturing
  • Health authorization. Approval of water, sewage and gas installation.
  • Fire department approval
  • Permit from the Secretariat of Economy. Approval of the electrical and gas installations
  • Construction permit. Ensures that project adheres to State and Municipal construction and regulatory codes.
  • Electrical utility permit. The following authorities will be responsible for issuing the permits.
  • The water authority
  • Electrical utility company
  • The city public works department
  • Water and Sewer Connection: To be obtained from the Municipal or State water authority.

Most of these permits are related to the location and construction of the facility, The developer / and or builder will obtain them for you while your building is under construction.

Land:

In the case of a purchase, the industrial developer must provide:

  • Legal information showing clear title to the property
  • Certificates of infrastructure availability issued by the utility companies
  • A certificate of no liens and land use approval
  • The permit of the municipality to sell the real estate in order to obtain title transfer of the property.

The typical steps that a buyer will follow to purchase property include but are not limited to the following

  • Title Search
  • Entitlement and permits review
  • Land survey
  • Environmental Impact statement-geological study.
  • Title Insurance

The transfer to trust and transfer of property tax payments are made at the time of title transfer in most cases, land purchases are made in cash if the land is completely improved and immediately transferable, if not it will depend on individual negotiations and may revert to other types of transfer vehicles such as trusts.

Land Acquisition principal Issues:

  • Title to the property
  • Existing land use and subdivision permits
  • Avaliability of infrastructure, feasibility statements issued by the utilities companies may not be sufficient, since these may be conditioned to improvements not existing and subject to developer performance.
  • Accesibility to the city road network, public transportation, and proximity to worker living concentration areas.
  • Title insurance, if desire