News

Baja Homeownership Requires Visa

Thousands of U.S. citizens appear to own property in Mexico without having the requisite FM3

What are the Mexican immigration or visa requirements for American citizens when buying property in Mexico? With so much real estate buying along the coast from Tijuana to Ensenada by Americans throughout Southern California, Arizona and Nevada, the question of immigration was bound to come up and it has from a number of readers of this column.

Mexico has a variety of visas. Most Americans entering Mexico traveling into the interior of the country obtain the FMT visa, which is a tourist visa. The FMT only allows what it implies being a tourist no business, and buying or even leasing real estate property is part of business, not tourism.

When leasing or buying real estate in Mexico, the FM3 visa is needed. It can be applied for in conjunction with the real estate transaction so there is no need to obtain that first, but obtaining it is a must. Not obtaining the FM3 visa negates any rights one may have in the event of any dispute requiring court interdiction, in turn placing the purchased property in jeopardy and the person into an illegal alien status.

The FM3 is good for one year at a time, but renewal is easy and can be handled by an attorney or others without the necessity of even being present, which may be important since renewals must be applied for in the same city where the original was granted.

The Baja real estate boom continues unabated with 57 known real estate projects offering more than 9,200 houses, condos and lots ready for construction. New projects also are in the works that will soon be on the market, from Playas de Tijuana to Ensenada, all providing ocean views or oceanfront living, and all being primarily marketed to U.S. residents.

The driving force behind the demand for Baja housing is that it remains a relative bargain compared to similar housing along coastal waters in California.

As that demand grows, so too does the number of U.S. citizens who must obtain the FM3.

Visitors to Baja are not required to have an FMT (tourist) visa. Entry into the country from the border crossing is simple: drive or walk through. A small percentage of the time, a red light flashes at the port of entry, requiring the visitor be checked by Mexican customs but not by immigration officials.

The result of that simple entry procedure has been that there is little awareness of Mexico's immigration laws and visa requirements. When purchasing property, immigration status is far too often not even on the radar screen of buyers.

Mexico's immigration agency (INAMI) has begun publicizing the need for FM3 in the Rosarito and Ensenada municipalities due to the large number of real estate sales made to Americans and the low number of FM3s issued along the corridor.

Rosarito has about 8,000 FM3 holders, but the American population there is estimated at close to double that number. The true population is visible most weekends. The message here is that even when the real estate purchase is for a second home and not full-time living, an FM3 visa is still required.

Numbers for Ensenada are fuzzier. Even the U.S. Consulate is uncertain how many American expatriates live on the Baja California Peninsula. A few years ago the number was estimated to exceed 170,000, based on the number of Americans who had registered with the consulate. The actual number by now might well be over the 200,000 mark and not all register with the consulate.

Mexican immigration officials say if that figure is anywhere close to fact, there are a lot of American illegal aliens in Baja as the number of total FM3 visas are somewhere around 20,000. Before anyone runs down there to organize street marchers waving American flags, translating the Mexican national anthem to English and demanding immigration rights and legalization, there is a much easier way to get the FM3.

It seems that Mexico recognizes the economic, cultural and social contributions made by Americans buying properties and settling or living there part time. These residents are welcomed as members of the community as the largest percentage are great citizens and represent the United States well. As such no one is going to be deported by after-the-fact acquisition of the FM3. Sounds like amnesty.

Those with FM3 questions living in the United States should contact the nearest Mexican Consulate for advice and applications. In Baja, the contact is the office of Instituto Nacional de Migracion (INAMI), or a Mexican attorney who can handle the process. Most responsible real estate agents working in Baja are making sure that new buyers are aware of the need for the FM3 and are helping in the process.

Patrick Osio Jr. can be reached at patrick@transbordercommunications.com