Frequently Asked Questions Regarding Foreigners and Title Deed in Mexico

As an investor in Mexican real estate, it is essential to understand the title registration process and have reliable legal representation before you hand over your money. Foreigners risk losing everything if they do not hire a reputable law firm to represent them and ensure they receive the title on the property.

Property in Mexico does not officially belong to you until the Notario has registered you as the new owner in the (Registro Público de la Propiedad) Public Registry. Investors should understand the risks of paying for property not registered in their name.

Do I need Title Insurance?

Many foreigners investing in Mexican real estate are led to believe they will need to purchase Title Insurance on their prospective property; these policies are typically sold through an American based/or claiming to be American based company. The truth is if you choose a trustworthy law firm to represent you during your real estate purchase they will carry out due diligence, ensuring your title deed is clear before proceeding with closing. Chose a law firm that provides a Title Guarantee on your investment.

By selecting the real estate experts at MEXLAW for legal advice during real estate investment transactions, you will receive a Title Guarantee. Due diligence on the part of your attorney will secure title without purchasing title insurance.

Can I trust the seller?

It is imperative you have legal representation during a real estate purchase, In the event, you run into an unscrupulous developer, seller or real estate agent the potential for fraud will be detected immediately by your attorney.

Can the Notario represent me during a real estate transaction?

Although the Notario is a lawyer empowered and obligated by law to ensure the title is registered in the Registro Público de la Propiedad, they do not represent you; they are working for all involved in the transfer of property, the seller, buyer and the government.

A lawyer should follow up to ensure there are no human errors; the property is properly registered in the purchaser’s name and present the title deed to the new owner.  

Am I protected by a purchase contract and payment arrangement with the developer?

Holding an unregistered purchase contract or even having possession of the property does not protect your investment. Since the property’s title is registered under the developer it is at risk of lien or seizure, seek legal advice when entering a contract with the developer.

I have completed my payments and have possession of the home, do I need the deed?

Without the registered title or trust, the investor’s rights may be overruled by a third party according to Mexican law. The buyer should have a copy of the title in their hands and not rely on an agent, developer or seller’s word the closing is complete. Never assume the title has been transferred without proof.

I do not speak Spanish, how do I know what I am signing?

An International law firm such as MEXLAW will have English, French, and Spanish-speaking lawyers; you may request a version of the contract in English and a translation of the title deed.

Buying Mexican real estate should be a comfortable, safe investment, not a gamble.

MEXLAW will guide new investors through the whole investment process from contract agreements to the closing and provide assistance regarding paying their yearly trust fees, taxes. Mexlaw also offers experienced and competent accounting services.