Frequently Asked Questions about Ownership

Can foreigners own property in Mexico?
Yes. Foreigners can own property in Mexico, including beach properties. Inside the "Restricted Zone" ownership is through either a Mexican corporation or a Fidecomiso (Bank Trust). In the interior of the country, direct ownership is possible.

What form of ownership should I use to purchase property in Mexico?
For those doing business in Mexico, a Mexican Corporation would be formed. For those living full or part time in Mexico, but not engaging in business a Fidecomiso or bank trust is used. In the interior of the country, direct ownership is possible.

What is a Fidecomiso?
A Fidecomiso is a bank trust that is set up to hold ownership of land, in the restricted zone, for a foreigner. The trust is for up to 50 years, is renewable, and the beneficiary has all the rights, and obligations, of ownership.

Do I need an attorney?
It is advisable for someone purchasing property in Mexico for the first time to seek qualified legal counsel.

Can I set up a Mexican corporation?
A Mexican attorney can advise you how to set up a Mexican Corporation. The Corporation must have a minimum of two shareholders, one of whom must be a Mexican National.. Shareholders of a corporation are able to obtain an FM3 (work visa) for doing business in Mexico.

Can foreigners get fee simple title in Mexico?
YES. Fee Simple Title can be obtained for foreign ownership through a Mexican Corporation or Fidecomiso which holds the title. In the interior of the country, fee simple direct ownership is possible.

What is a Notario and do I need one?
A Notario (notary public) is a lawyer who has studied for six additional years, and is licensed by the government to perform certain legal tasks. A Notario prepares and records titles and agreements, verifies that the agreements are legal, and is an official witness to and guarantor of signed and notarized agreements, along with certain other requirements of real estate sales.

What are the steps or procedures for making an offer and closing a property purchase safely in Mexico?
When an offer is made and terms are agreed to, an agreement is prepared and presented for signature. The buyer at that time places a deposit to guarantee performance. The title history of the property is then researched. A legal opinion on the history, and counsel on the form of ownership to hold the property should be obtained.
When all the contingencies are satisfied, sales contract documents are prepared. Then, both parties sign the documents before a Notario, the balance of funds according to the terms of the agreement are exchanged, and the Notario records the completed sale. (For more details, see The Financing Process)