Below you will find a compendium of the most frequenty asked questions by our clients. We hope that some of our answers will help you and give you information about buying real estate in Mexico.
Is it safe to own property in Mexico?
If you are considering making an investment in Mexico, use all of the means available to assure your investment is secure. As real estate professionals, we hear concerns raised by buyers because of the publicity of the 14 year battle in the Punta Banda situation. Those buyers DID NOT use the LEGAL SYSTEM available in Mexico to acquire their property in a legal manner. One buyer at Punta Banda said “I THOUGHT WE HAD A BANK TRUST” In the United States, when you purchase a piece of property, do you THINK that you have a deed or do you KNOW you have a deed? COMMON SENSE should prevail in any real estate transaction in ANY country.
Who is involved in real estate transactions in Mexico?

1) A seller
2) Real estate companies (Representative Buyer Agencies)
3) The buyer’s lawyer or representative
4) A bank
5) A public notary
Should I use a real estate agency when purchasing property in Mexico?

It is highly recommended that one buys through a fully registered Real Estate Agency. There are several associations to check to see if your real estate agent is legally established. AMPI (Professional Real Estate Association) is the Mexican equivalent to the National Association of Realtors in the States.
What is AMPI?

AMPI is the Mexican Association of Real Estate Professionals, formed in 1956, it now has member in more than 22 cities, plus an International Section. AMPI is affiliated with the national Association of Realtors (U.S.A.), the Canadian Real Estate Association, FIABCI, and the International Real Estate Federation and with the newly formed International consortium of Real Estate Associations, ICREA. Mexico through AMPI is represented on the five member Board of Directors of this new global initiative.

AMPI is the largest Real Estate Association in Mexico, founded in Mexico City, with 20 members. Today has over 1,000 members and represents about 10,000 practitioners through the country. AMPI include: Appraisers, Developers, councilors and Brokers, which are subject to our By laws and adopted our code of ethics. AMPI is governed by the National Board of Directors, which elects a National President for a 2 year term. AMPI has 30 autonomous boards, in most of the mayor areas in the country.

AMPI works together with Federal, State an Municipal authorities, proposing new laws and amendments to existing laws and regulations, directly related to the Real Estate activity. AMPI represents its associates in diverse private and public entities. AMPI is a founding member of the International Consortium of Real Estate Associations. AMPI has a practitioners Registry at the Mexican consumer protection Agency and uses authorized contracts.

Why Deal with a member of AMPI?
AMPI members are dedicated to the highest level of ethics and professionalism. Each year AMPI member must sign a pledge agreeing to operate by the AMPI Code of Ethics. (Similar to those of other national real estate associations). Disputes with an AMPI member can be resolved through it's Committee of Honor and Justice which functions on both local and national levels. Just as in your own country, do not gamble by using someone not a member of the National real estate association.
What are the benefits of a bank trust?
Any foreigner or Mexican National can constitute a “Fideicomiso” (the equivalent to an American beneficial trust) through a Mexican bank in order to purchase real estate anywhere in Mexico, including the Restricted Zone. To do so, the buyer requests a Mexican bank of his/her choice to act as a trustee on his/her behalf.
The bank obtains the permit from the Ministry of Foreign Affairs to acquire the chosen property in trust. The Fideicomiso can be established for a maximum term of 50 years and can be automatically renewed for another 50 year period. During these periods the registered owner has the right to transfer the title to any other party, including their family members.
The bank becomes the legal owner of the property for the exclusive use of the buyer/beneficiary who has all the benefits of a direct owner, including the possibility of leasing or transferring his/her property rights to a third party or to a pre-appointed heir. During this period, the foreigner is considered to be a Mexican National.
The trustee is responsible to the buyer/beneficiary to ensure precise fulfillment of the trust, according to Mexican Law. It assumes full technical, legal and administrative supervision in order to protect the interests of the buyer/beneficiary. Fideicomisos are not held by the trustee as an asset of the bank.
For practical purposes, even in unrestricted zones, many foreigners and even Mexican Nationals prefer to place their property under a Fideicomiso.
What happens to my bank trust if I die?
You list your beneficiaries in the Bank Trust document when the Bank Trust is placed in your name. Should something happen to you, your heirs will need to take an official copy of the US death certificate and have it translated in Spanish They will then take these two documents to the Secretary of State from your state and request an Apostle which is an internationally recognized document that the attached death certificate is authentic and be recognized by the bank to place the Bank Trust in your heirs name, The fee in California, for instance, is 26.00 and the fee in Arizona is 3.00. You can also have a Mexican will for your other assets
Do I need title insurance?
There are different types of Title Insurance. There is Title Insurance available on the land (US Style) and Title Insurance available on just the Fideicomiso (Bank Trust).
A title insurance policy is a contract of indemnity that promises to pay for a loss up to the face amount of the policy if the state of the title is different than it is set out in the policy and the insured suffers a loss as a result of the difference.

A title insurance policy will cover both claims arising out of title problems that could have been discovered in the public records and those so called non-record defects that could not be discovered in the public records even with the most complete title search.
A title insurance policy will not only protect the insured for as long as they have an interest in the property, but it will also protect their heirs and devisees for as long as they hold title to the property.

Due to the many rights, claims, interests, and encumbrances that the law recognizes in real property, it is essential for the buyer to have a title search and examination performed before the purchase is consummated in order to identify precisely the nature of the title the seller can legally convey and the rights and interests of all other parties in the particular piece of property. Title policies offer the only protection available against latent defects of title which do not appear of record such as forgery, impersonation, capacity of the parties, faulty acknowledgments, and inchoate mechanic’s and materialmen’s liens.
How much does it cost?
Currently, American title insurance is available only for foreign investors. The benefit of American title insurance for your Mexican real property is that your rights are enforceable in the U.S. against a U.S. company. Before acquiring any title insurance, it is recommended that you read the policy and determine the exact coverage's afforded.
The insurance runs about $4 to $7 for every $1,000 of property value.
How are real estate transactions handled?
Most real estate transactions are opened after a written purchase offer is accepted by the seller and when a purchase-sale agreement (promissory contract) is signed by both parties. In most cases, a deposit is required by the broker in order to transmit the offer to the seller. If the transaction is being conducted directly with the seller, it is highly recommended that a real estate broker or a lawyer be consulted before signing any papers or exchanging any money.
In some areas it is common practice to deliver to the seller, as an advance payment, the equivalent of 20-50% (including the initial deposit) of the total price upon signing the purchase-sale agreement, which should contain a penalty clause in case there is a breach of contract by any of the parties.
Normally, when signing the escritura or official deed, which needs to be certified by a Notario Publico (notary public), the balance is paid and the property is delivered. This should not take more than 45 days.
What is a Notario Publico?
The Notario Publico is a government appointed lawyer who processes and certifies all real estate transactions, including the drawing up and review of all real estate closing documents, thereby insuring their proper transfer.
All powers of attorney, formation of corporations, wills, official witnessing, etc. are also handled and duly registered through the office of the Notario Publico, who is also responsible to the government for the collection of all taxes involved.
Regarding real estate transactions, the Notario Publico, upon request, receives the following official documents, which by law are required for any transfer:
A no lien certificate from the Public Property Registry based on a complete title search.
A statement from the Treasury or Municipality regarding property assessments, water bills, and other pertinent taxes that might be due.
An appraisal of the property for tax purposes.