HOA Condos for Sale in Mexico: What You Need to Know Before You Buy

Buying a condo for sale in Mexico may be a good financial investment, especially if it’s part of a homeowners’ association (HOA) or condominium owners’ association (COA). Many condos in Mexico have HOAs and experience the added benefits of managed community living. Read on to learn more about condos in Mexico and frequently asked questions about HOAs in Mexico.

Best Places to Buy a Condo in Mexico

Whether you’re looking to enjoy a slower pace of life or want to connect with an active community, Mexico has it all. Some of the best cities to buy a condo in Mexico are:

• Cabo San Lucas: With beautiful scenery, a relaxed lifestyle, and proximity to the U.S., condos for sale in Cabo San Lucas don’t last long.

• Chapala: The moderate, year-round temperatures and wide range of outdoor activities make Chapala a hot spot for nature lovers.

• Mazatlan: Featuring a historic city center, warm, sandy beaches, and a lower cost of living, Mazatlan’s residential properties are in high demand.

• San Miguel de Allende: San Miguel de Allende boasts a vibrant arts scene, rich architecture, and a thriving expat community.

RELATED: “Thinking About Buying A Home in Mexico? Here’s What You Need to Know”

Why Buy a Condo in Mexico?

Mexico’s real estate market provides an exciting opportunity for foreign investors. Mexico properties, like condos, apartments, townhomes, and houses, appeal to a variety of buyers. Here are some reasons to buy real estate in Mexico:

• Weather. Mexico’s diverse landscape offers warm and sunny beaches, cool mountainous regions, and everything in between.

• Accessibility. Direct flights from major U.S. cities make Mexico a quick and easy escape.

• Affordability. A favorable exchange rate and lower cost of living ensure Mexico is one of the most affordable countries in North America.

• Language. Although Spanish is the primary language, many residents are well-versed in English. Those living in major metropolitan hubs, like Mexico City and Guadalajara, often speak more than one language.

FREE DOWNLOAD: “How Do You Say HOA?”

How to Buy a Condo in Mexico

Buying a condo in Mexico is a big decision, so it’s always best to work with a professional real estate agent to find the property that fits your needs and budget. Consider these tips before you purchase:

• Choose your location wisely. Confirm the area you want to live in suits your lifestyle. Whether it’s convenience, culture, or recreation that you value, not every location is created equal.

• Get to know the area. Do you due diligence and research the area. Talk to locals, join expat forum groups online, and visit often to understand what it would truly feel like to live there.

• Use local contractors. Local businesses not only have better prices, but they’re also much more knowledgeable about the area and its specialized building requirements.

• Know your rights as a buyer. Understanding your limitations as a foreign buyer is key to a smart condo investment. Work with a professional real estate agent and a licensed real estate attorney to purchase your property.

• Budget properly. Factor in the exchange rate and budget for additional costs, like real estate agent fees, attorney fees, taxes, and closing costs.

Benefits of Buying a Managed Community Condo in Mexico

Managed communities are spotted throughout Mexico, from beachfront condos to city center high-rises and quaint townhomes on the outskirts of town. Buying a condo in a managed community offers countless benefits.

Some of the biggest perks of living in a condo association in Mexico include:

• Second set of eyes on your property. A condo association fosters a culture of belonging where everyone looks out for one another.

• Consistent home values. The board ensures that rules are being followed, protecting your investment and maintaining its worth.

• Selection of amenities. Features like pools, beach service, pickleball courts, and recreational areas all make community living more enjoyable.

• Common area maintenance. The condo community usually assumes responsibility for landscaping and common area maintenance, so you can focus on enjoying your time.

• Neighborhood safety. Often providing private security, a gated entrance, or personalized key fobs, condos are some of the most secure places to live. 

How Community Management Can Transform Condo Living in Mexico

Partnering with the right management company is vital to the success of any community—especially condos in Mexico. The right management company helps leaders stay on task and enhances the overall community experience. A management company transforms condo living by:

• Facilitating communication between the board and condo owners

• Managing operational duties so the association stays on track

• Offering cutting-edge technology and updated payment methods

• Providing a proven track record of fiscal responsibility

• Remaining connected to all fiscal and legal changes and obligations

In addition, Associa Mexico offers a $10 million USD crime policy, which protects an association’s funds in the case of unforeseen circumstances.

The Beginner’s Guide to Purchasing a Second Home

Before buying a condo for sale in Mexico, you must first decide on the best place to buy a condo, weigh the reasons to make a purchase, take buying tips into account, and understand the framework of HOAs in Mexico. To get more expert guidance on purchasing a second home, read “The Beginner’s Guide to Purchasing a Second Home.”

8 FAQs About Managed Communities in Mexico

1. Do HOAs exist in Mexico?
   

   Yes, managed communities exist throughout Mexico. They’re often called homeowners’ associations, neighborhood associations, residential communities, and condominium communities.

2. Who oversees a managed community in Mexico?

   Residents typically elect a board of directors to oversee community operations. The duties of a board include enforcing the governing documents, managing the reserve fund, establishing administrative policies, and hiring contractors. A board may hire a management company to assist with these responsibilities. 

3. Do you have to pay HOA fees in Mexico?

   Yes, members of a managed community in Mexico are generally required to pay HOA fees, as outlined in their documents at closing. These fees may cover services such as neighborhood security, maintenance, and management.

4. How much are HOA fees in Mexico?

   HOA fees in Mexico vary greatly by community. Several factors, including the association’s size, location, and amenities, influence the cost of HOA fees. Generally, HOA fees in Mexico can range from $100 to $1,000 USD per month. Always ask your real estate agent or attorney about potential HOA fees in your desired neighborhood.

5. Are HOAs legal in Mexico?

   Yes. A developer must first create and file a condo regime with the state. This establishes an ownership structure and governs the relationship between the HOA and individual owners, offering a legal framework for HOAs to operate.

   A civil association (as opposed to an individual) is then typically appointed as its legal administrator. Because this allows the civil association to manage the community’s most critical processes, like opening and closing bank accounts and hiring service providers, it’s crucial that a civil association is formally approved by all condo owners, the assembly. A formal approval helps prevent disputes and ensures legal certainty.

6. What is a condo regime in Mexico?

   A condominium regime is a property formalized before a notary public and authorized by the corresponding municipal offices responsible for approving construction permits and the services that will form part of the condominium. The condo regime includes documents that detail the measurements, characteristics, and boundaries of each private unit, as well as the description of the common areas and the community’s internal regulations.

   It serves as the legal foundation that authorizes a legal entity or individual to administer the condominium. Typically, the developer will first administer the condo and, at the appropriate time, transfer it to the administrator formally designated by the assembly.

7. Why does a condo regime need a legal administrator?

   A legal administrator plays a very important role in the community. Whether the legal administrator is a board or an individual, it’s their duty to perform administrative and legal tasks for a community under the supervision of a licensed attorney. Working on behalf of unit owners, a legal administrator’s functions may include managing finances, enforcing rules, and representing the association in legal matters. 

8. What laws are condo association subject to in Mexico?

   Condominium regime legislation can vary significantly from one state to another. There is no federal law that uniformly governs condo associations. Instead, condos must comply with applicable condominium regime laws within the state in which it’s located.