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Escrow Services

As an investor, it is vital to consider how your payment or deposit will be held during the completion of mutual obligations in any contract. Escrow services provide a neutral third party which holds the funds in compliance with the instructions of all the parties to an agreement. Neither party may access the funds until all of the obligations of the parties are satisfied.


Mexican lawyers, Notaries and real estate agents cannot legally hold funds “In Trust.” Mexico does not have the Escrow Services which are available in Canada or the US. In Mexico, funds are customarily held in the realtor, developer or lawyer’s personal bank account. The account is uninsured and susceptible to seizure or liens. Although the broker or lawyer will hold your funds with good intentions, their creditors and tax authorities (SAT) will have access to these accounts. The accounts are not protected as they are elsewhere in North America.


To secure your deposit or payment, you should use an Escrow Service which is insured and held in a Canadian or American bank in a segregated account. MexLaw is a trustworthy law firm authorized to provide Escrow Services in Mexico and elsewhere in North America.

The benefits of MexLaw’s escrow service include:

Separately administered Escrow Accounts

The funds are held in a Canadian Chartered Bank account

The Escrow Account is protected by professional liability insurance for $1,000,000 per account

The Escrow Service includes an arbitration process to resolve any disagreements with the transaction

Protection against fraud

Professional escrow services from MexLaw are available for a variety of situations in all types of transactions between companies and individuals:

Real Estate Transactions

Property Rental

Line of credit

International Trade

Vacation rentals

Payment of fees

Administration of Trust accounts in Mexico


Protects the builder as well as the buyer/owner during construction or renovations. The funds for the project are held in Escrow and will be released as the construction progresses. The Escrow helps the builder stay on budget, complete all conditions. and ensure that expenses for the building are paid on time and in full. Funds held in Escrow also protects the buyer/owner by guaranteeing that the construction company does not use their money inappropriately.


Beware of closing companies who claim that they can receive and hold funds in their Escrow Account because one of their members is an American Realtor and therefore the money will be deposited into their trust account and held until the closing. They claim your funds will be protected by the realtor’s board of which they are a member. This claim is not accurate.


The realtor’s board in each US State will only permit funds to be deposited in Trust for transactions taking place in the State of which the realtor is an active member – representing the buyer of the seller.


Foreigners investing in Mexican real estate are advised not to use closing company trust accounts.


When buying, selling or offering services, both parties to a contract are concerned that the other party will not deliver on what they promised. The “client” wants to receive the product or service and the “seller or service provider” wants to be certain that they will be paid once they do deliver. In some contracts this can be achieved by a COD method of payment on delivery. If no payment, no delivery. However, what can be done when the delivery needs to be shipped to its destination thousand of kilometers away? Or partial deliveries over a period od time? Or the provision of services over time including partial instalments? One of the parties of the contract has to take the risk that the other will comply faithfully with the bargain or there will not be a transaction.


Escrow services resolves this dilemma by providing a neutral third party to hold the funds until all the parties have accomplished their part of the bargain, the conditions of the Escrow are detailed in the Escrow Services Agreement. The Agent holds the funds and disburses them according to the terms of the Agreement and respect the conditions.


Trust Mexlaw as your Escrow Agent. We are an impartial, experienced, and multi-disciplinary team of lawyers that will prepare the Agreement and anticipate any issues that may arise. Once appointed and in control of the funds, Mexlaw will respect the obligations contained in the agreement and will help resolve any issues that may resolve.

Contact us to learn more

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