NEWS

1) Yes—foreigners can buy property in Mexico (but the “restricted zone” matters)

Mexico has a “restricted zone” that covers 50 km from any coastline and 100 km from international borders. In that zone, foreign individuals don’t typically hold direct title for residential use—they buy through a bank trust called a fideicomiso.

2) What is a Fideicomiso (and why it’s not “risky” when done right)?

A fideicomiso is a bank trust where:

• A Mexican bank holds title as trustee
• You (the international buyer) are the beneficiary
• You retain the rights to use, remodel, rent, sell, and inherit the property
  It’s commonly created for 50 years and can be renewed.

3) The Notario Público is a big deal (not like a U.S./Canada notary)

In Mexico, the Notario Público is a state-appointed attorney who prepares the escritura (deed), verifies documents, and typically oversees tax calculations and registration with the Public Registry.
Pro tip: many buyers still hire an independent real estate attorney for their representation, while the notario fulfills the formal legal function.

4) A simple view of the buying process (typical flow)

1. Offer + Purchase Agreement (price, inclusions, timelines, contingencies)
2. Earnest money deposit (held with the agreed mechanism/provider)
3. Due diligence (legal + physical)
4. Fideicomiso setup (if in restricted zone) + required permits/authorizations as applicable Consulado de México+1
5. Escritura signing before the Notario
6. Registration in the Public Registry + handover

5) Closing costs & taxes: what to budget

Costs vary by state/municipality and deal structure, but one consistent item is the property acquisition/transfer tax, often around ~2–4% depending on the state (and in some places can be higher). Other common costs can include notary fees, appraisal, Public Registry fees, fideicomiso setup/annual fee, permits, and admin.

6) Due diligence checklist (the stuff that saves you headaches)

Before you close, confirm things like:

• Clear title / chain of ownership
• No liens and no unpaid debts attached to the property
• Property taxes (predial) paid
• HOA status (fees + special assessments) and condo regime rules
• Permits (especially if there were additions/remodels)
• Utilities status + metering situation
• A professional inspection (structure, plumbing, electrical, AC, roof)
  Much of the formal legal verification runs through the notario process, but you want your own checks too.

7) The most common “first-time buyer” mistakes

• Buying based on a great view… without confirming title/HOA/permits
• Not understanding the difference between the purchase contract and the escritura
• Assuming the notario is “your lawyer” (they’re official/legal, but not always your personal advocate)
• Underestimating closing costs and timeline variability
• Not planning the funds transfer properly (bank compliance, documentation, FX strategy)

8) Quick “First-Time Buyer” action plan (copy/paste handy)

• ✅ Pick a trusted local agent + define your must-haves
• ✅ Get a buyer’s attorney (recommended)
• ✅ Make offer with clear contingencies + timeline
• ✅ Do inspection + legal due diligence
• ✅ Confirm closing cost estimate early
• ✅ Set up fideicomiso (if restricted zone)
• ✅ Sign escritura + register + switch utilities/HOA

Ready to Buy with Confidence?

If you’re considering a purchase in Mexico—especially in Baja California Sur—having a clear plan (and the right team) makes all the difference.

Book a call with your Real Estate Sherpa

Use this call to map out your buying timeline, clarify fideicomiso, estimate closing costs, and build a due diligence checklist tailored to your goals.

👉 Book a call with your Real Estate Sherpa: