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Your complete guide: Real estate for sale Puerto escondido

Table of contents

  My first experience of purchasing land in Puerto Escondido was much more than acquiring a mere property. It was an immersion into a coastal paradise of breathtaking natural beauty. Located on the Pacific coast of Mexico, this enchanting region attracts investors seeking an authentic living experience. Imagine waking up every morning facing the ocean, serenaded by the gentle murmur of the waves. The richness of marine wildlife and the preservation of natural landscapes create an ecosystem of stunning beauty.       My real estate purchasing process in Puerto Escondido required a thoughtful and informed approach. Collaborating with seasoned local professionals in real estate law was essential to ensure a smooth and secure first purchase. In this complet guide about ” real estate for sale Puerto Escondido”, I will explain the essential information you need to know. First and foremost, you must consider local regulations in urban planning and environmental impact, designed to maintain the delicate balance between development and nature preservation.  

        I/ Fundamental Principles Applicable to Real Estate for Sale in Puerto Escondido

    Within Puerto Escondido, legal and regulatory implications related to land ownership intertwine.      a. Puerto Escondido: 2 Municipalities The city of Puerto Escondido is built upon two municipalities: San Pedro Mixtepec (downtown and airport) and Santa Maria Colotepec (Zicatela, Barra, etc.). Each municipality is governed by its own political and administrative representatives, and rules may vary from one municipality to another.      b. Puerto Escondido: 2 Types of Land Ownership The two types of land ownership are as follows:   Terrenos comunales (Communal Lands): “Terrenos comunales” belong to a community or indigenous population. They are governed by specific laws and typically managed collectively by the community.   Terrenos privados (Escritura pública) (Private Lands with Public Deed): “Escritura pública” is a property title. Real estate transactions are conducted before a notary public who legally establishes ownership of a property. When purchasing, it is crucial to ensure that the “escritura pública” is correctly established to guarantee legal security in the transaction.   Being divided into two distinct municipalities, the balance between preserving natural wealth and the growing interest of tourist investors has been the source of many conflicts. To reach a consensus, an agreement was reached during an assembly between the Municipality of Santa María de Colotepec, governed by customs and traditions, and the Municipality of San Pedro Mixtepec, which is governed by political parties: only 2 levels would be constructed, plus an additional palapa level.   The basis of this agreement rests on the fact that with this maximum height limit, the integrity of the wave would not be altered, and constructions would have no detrimental effects on the preservation of the local ecosystem. However, there are exceptions and waivers to this rule.   Note: Regular visitors to the Oaxacan coast were predominantly surf enthusiasts and individuals connected to this discipline. Puerto Escondido stands out as an exclusive surf site with an exceptional wave that enjoys worldwide renown. This wave, the third-largest in the world after Nazareth (Portugal) and Maui (Hawaii), breaks on the beach of Zicatela in Puerto Escondido. In the summer, it can reach heights of up to 15 meters.   The case of Oxean illustrates an attempt to construct 80 luxury apartments on Bacocho Beach, a vital location for the preservation of sea turtles. More specifically, this beach is home to two endangered species of turtles that lay their eggs and hatch their young here each year. The erection of this real estate complex would have significant repercussions on the conservation of these turtle species.   Following numerous protests and exchanges, the Secretary of Environment and Natural Resources (Semarnat) decided to suspend the construction project because the environmental impact assessment report was not conducted in compliance with the law, pursuant to Article 28. You can understand, therefore, that it is vital to adhere to this agreement for the continuity of Puerto Escondido as a paradise on the coast of Oaxaca.      c. Mexican Law Applicable to Foreigners In general, foreigners cannot directly own property in restricted zones in Mexico, which means within 50 km along the coast and 100 km along the borders.   However, it is entirely possible to become a property owner in restricted zones through indirect ownership (fideicomiso or Mexican company). The acquisition of communal properties is administratively managed by Bienes Comunales, which issues actas de posesión (possession titles).   Regarding the transfer of property on lands with an Escritura pública (Notarized Deed), it can also be accomplished by establishing a company or a fideicomiso (bank trust) in the name of the buyer. Only privately owned lands, held with a clear title (escritura pública), are eligible for a fideicomiso. This trust is typically created with a Mexican bank and acts as a legal intermediary between the foreign buyer and the property. This allows compliance with legal restrictions while enabling the foreigner to acquire and hold real estate in the region. It is imperative that the title is issued by a notary and registered with the district title and tax offices of the state.   Note: There are Ejido and Terre Communale: Although ejidos and terres comunales are classified as collective lands from a legal perspective, their statuses have differences. An ejido is a federal land concession often derived from a former hacienda or plantation, while communal lands are historically dedicated to a specific community. Concerning the privatization of an ejido, the process is generally simpler, whereas for communal land in Oaxaca, obtaining a federal decree is often required.   My experience has taught me the importance of due diligence before purchase. Conducting a comprehensive property history audit is crucial to avoid future problems.


        II/ Land Acquisition Procedures for Real Estate for Sale in Puerto Escondido

        During my land acquisition in Puerto Escondido, I followed a methodical and well-defined process.      a. Contractual Steps: Preliminary Agreement: After agreeing on the price, terms, and financing, signing a preliminary agreement allowed me to gather the necessary funds, including personal funds, savings, or bank loans. The continuation of the transaction is typically subject to a suspensive clause regarding the buyer’s financing approval.   Sales Agreement: Whether in the form of a sales agreement or promise of sale, this step, concluded either directly between the parties or through a notary, required the signatures of both the seller and the buyer. A deposit was paid upon property reservation, involving the mandatory intervention of a notary.   Authentic Deed: The acquisition of the building plot led to the signing of the authentic deed before a notary. The remaining balance was paid in full, thereby finalizing my ownership.      b. Building Permit: Building permit applications were submitted directly to the municipality (Obras Públicas), and the costs were determined based on the project’s size.      c. Rights Associated with Land Ownership: The acta de posesión grants a right of occupation and not full ownership. It provides you with the rights of use, sale, and transmission to your heirs. Any land disputes related to these lands are handled by the Agrarian Court of Oaxaca, not by local or federal legal authorities. In contrast, the Escritura pública grants full ownership, meaning the absolute and complete right to possess, use, and manage a property without major restrictions, in accordance with the applicable laws.      d.Taxation and Communal Properties: Land in Colotepec, classified as tierras comunales, follows different rules for capital gains taxation.      e. Recommendations for Future Investors: I reiterate here that before investing, it is crucial to conduct a comprehensive audit of the property’s history or possession to avoid potential problems.      f. Legal Guidance and Personalized Expertise: As you have understood from reading this article, surrounding yourself with trustworthy professionals is essential. My first purchasing experience with Osan Puerto Real Estate agency was invaluable.     The co-founders, Oscar and Antoine, have a deep understanding of the legal intricacies and the real estate market in the region.       Antoine, originally from France, is a financial advisor with a degree in real estate from the Autonomous University of Mexico and certified by AMPI (Mexican Association of Real Estate Professionals). Based in Puerto Escondido since 2019, he is well-equipped to provide you with the best advice for confident and secure investments. He is fluent in French, English, and Spanish. As for Oscar, a native of Puerto Escondido, he holds a degree in corporate accounting and finance. A professional in the Puerto Escondido real estate market since 2017, his local network keeps him constantly informed about the market and helps him find the best properties.     Osan Puerto Real Estate agency offers its services in three languages: French, English, and Spanish, ensuring a seamless process for:
  • Buying or selling land or a house, or handling any legal procedures, including legal background checks if you have already found your dream property in Puerto Escondido or along the coast of Oaxaca.
  • They work closely with local notaries and lawyers to facilitate the establishment of your Mexican company, whether for land acquisition or to realize your business project in Puerto Escondido.
To ensure the success of your real estate project in Puerto Escondido, Osan Puerto Real Estate is undoubtedly your ideal partner.     The purchase of real estate in Puerto Escondido represents a significant step that requires a deep understanding of laws and legal procedures.   By following the valuable advice and guidance provided by Osan Puerto, I felt prepared and confident to fully embrace my investment experience in Puerto Escondido. Turn your property ownership dream into reality and immerse yourself in this coastal paradise where nature, culture, and authenticity harmoniously come together. Discover the agency’s profile        

Respect the Environment and the Community

During your visits, it is essential to respect the environment and the local community. Pickup your trash, avoid disturbing the fauna and flora, and respect the customs and traditions of the residents. By acting responsibly, you will contribute to preserving this beautiful place for future generations.