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Mexico · Real Estate
Buying property in Mexico.
What the listing doesn't tell you: the structure required for foreign buyers, the diligence process, the closing mechanics, and the risks that actually materialize.
The essentials every buyer needs to understand
Ownership structure
Fideicomiso (Bank Trust)
Foreigners cannot hold title to property within 50km of a coast or 100km of a border directly. A fideicomiso — a bank trust — holds title on your behalf. You control the property; the bank holds the deed. Annual fee ~$500-800 USD.
The closing officer
The Notario Público
A notario is a government-appointed attorney who formalizes the transaction. Unlike a US notary, a Mexican notario has significant legal authority. They represent the transaction, not you — engage your own attorney separately.
What doesn't exist
No MLS, no standard contracts
There is no central listing database. Prices are often negotiable by 10-20%. Contracts are not standardized. There is no escrow equivalent — funds typically transfer at closing. Title insurance exists but is not universal.
The purchase process
How a closing actually works in Mexico.
01 Agree on price and terms with seller
Verbal or written letter of intent. Negotiate price, included fixtures, and a timeline. Nothing is binding yet.
02 Select and engage a notario
The notario you choose runs the closing. They search title, prepare the deed (escritura), and hold closing funds.
03 Title search and due diligence
Notario verifies ownership chain, checks for liens (gravámenes), unpaid property taxes (predial), and HOA dues. Budget 4–8 weeks.
04 Set up fideicomiso (if applicable)
If buying in a restricted zone, the bank trust is established now. Bank selection matters — fees and service quality vary significantly.
05 Sign the escritura and transfer funds
Closing happens at the notario's office. Buyer, seller, notario, and bank trust trustee sign. Funds transfer on signing. Registration follows within weeks.
What goes wrong
The mistakes that cost the most.
Skipping the title search
Unpaid taxes and undisclosed liens survive a sale in Mexico and become your problem.
Using the seller's recommended notario
The notario serves the transaction. Engage one independently or through your own attorney.
Misunderstanding ejido land
Ejido (communal agricultural) land cannot legally be sold to foreigners. Purchases do happen — and frequently fail years later.
Paying before closing
No legitimate transaction requires wire transfer before signing the escritura. Deposit structures exist but require careful legal documentation.
Ignoring HOA finances
In resort-area developments, underfunded HOA reserves mean you inherit deferred maintenance and special assessments.
Not budgeting for closing costs
Expect 4–7% of purchase price in closing costs: notario fees, acquisition tax (ISAI), fideicomiso setup, and registration.
Get help with your purchase
Know what you're buying before you buy it.
We help buyers understand the structure, vet the professionals, and navigate the process — before and during the transaction.
We bought land ourselves. We know exactly where the landmines are — and how to step around them.
Justin Keltner · Co-Founder