Foreign buyers can purchase property in Mexico through a fideicomiso (bank trust) or by setting up a Mexican corporation for commercial use. The process typically involves choosing a property, submitting an offer, arranging financing if needed, and completing the transaction with a notario, a government-appointed attorney who ensures the property is clear of any liens or encumbrances.

1. Offer / Purchase Agreement

• Buyer submits an offer and signs a purchase agreement with agreeable terms to all parties.

• Buyer opens Escrow to hold all funds until closing; Initial deposit of $10,000 USD is made which is fully refundable until the end of the due diligence period plus an additional $650 USD that is not refundable to open escrow. Escrow roll is only to hold funds securely and funds are only released at closing though disbursement instructions.

• At the end of the Due Diligence period, a second deposit with at least 10% of the purchase price will be deposited, making the initial deposit and second deposit become the earnest money and non-refundable. Once this happens, the closing attorneys can start the closing process.

• Total closing timeline: typically 60–90 days, depending on documentation and bank response times.

2. Request a Fideicomiso

• The Buyer selects a Mexican bank (e.g., Banorte, Scotiabank, Intercam, etc.) to serve as the trustee.

• A fideicomiso application is submitted via a notario, including:

  • Buyer’s passport, proof of address, and immigration status.

  • Property details.

  • Bank fees for setup and first-year administration.

3. Due Diligence

• The notario verifies the escritura, reviews the title, checks for liens, debts, or encumbrances.

• A property appraisal and certificate of no liens (libertad de gravamen) are ordered.

4. Drafting the New Trust Deed

• The notario, bank trustee, and attorneys work together to draft a new fideicomiso deed.

• The trustee bank becomes the legal owner, and the buyer is named the primary beneficiary of the trust, with rights to use, rent, sell, or pass to heirs.

5. Foreign Affairs Permit (SRE Permit)

• The notario requests a permit from the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores) allowing the foreigner to acquire property in the restricted zone via fideicomiso.

6. Closing at the Notario’s Office

• Once all approvals are in place, a closing date is set.

• Buyer signs the new Fideicomiso deed in front of the Notario.

• Closing costs and taxes are paid:

  • Transfer Acquisition tax (3%),

  • Notario fees,

  • Registration fees,

  • Bank Fideicomiso setup fee.

7. Title Registration

• The notario registers the new Fideicomiso deed with the Public Registry of Property.

• The buyer receives a certified copy of the escritura Fideicomiso, usually within a few months.

Key Notes:

• The Fideicomiso is valid for 50 years and renews automatically.

• The buyer can name substitute beneficiaries (heirs) to inherit the property.

• Annual Fideicomiso fees vary ($500–$800 USD/year).