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Posted by Greenwald and Gerke on January 4, 2018
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Guest post written by Roberto Vega

Are you considering purchasing property in Mexico.Ā  If so, you’ll want to read this useful information first!

The following is a checklist to keep in mind when exploring the potential to acquire real estate property in Mexico.

  1. American citizens can own real estate property in Mexico. There is a Constitutional limitation with regard to foreigners acquiring property located 50 kilometers off the Coast and/or 100 kilometers off a border.(“Restricted Zone”)

In these cases, a “Fideicomiso” Trust Agreement (“Trust”) must be set up.

  1. A title search must be properly executed for the benefit of buyer knowing who registered owner is and what liens and/or encumbrances property faces.
  1. Buyer is advised retain a licensed Mexican attorney qualified in real estate transactions since step one of this process.
  1. Also, keep in mind that real estate companies/agents or title insurance companies/agents are not legally regulated entities in Mexico.
  1. For Trusts, a Bank will always serve as fiduciary per legal disposition.


Land Trusts in Mexico are agreements by which seller gives the land to the Bank for it to own who in turn gives beneficiary of Trust (buyer) rights to use it for a period of time of up to fifty years (renewable).

Buyer can use, rent and sell property at market value but Bank will always retain title and Bank will collect fees.

Trusts are not leases, they are just a loophole to an outdated and nonsensical restriction.

  1. In general, the real estate transaction process in Mexico may be lengthy and costly and vastly under regulated when compared to the US. However, when buyer retains qualified legal representation in Mexico it can be a very simplistic process that can open up investment avenues. If buyer decides to go at it alone or misrepresented, then ill-advised decisions could be made that could put at risk such investment opportunities.


This article is intended for academic purposes only and does not constitute legal advice in any form or manner. For questions or comments please contact author at or at 619-370-9387 and please visit our website at: