3 Golden Rules to Avoid Failing When Buying Real Estate in the Mexican Caribbean

If you’re a foreigner looking to buy property in Mexico, there are three essential rules you must follow to ensure a secure and successful purchase:

Rule #1 – MAKE ALL PAYMENTS THROUGH A BANK

Never pay in cash or through informal methods. Always use a bank transaction to keep a legal and verifiable record of your payments.

Rule #2 – HAVE ALL DOCUMENTS APPROVED BY A NOTARY

A public notary in Mexico is responsible for certifying and ensuring that all real estate transactions comply with the law. If your documents don’t go through a notary, your purchase is at risk.

Rule #3 – IF YOU’RE A FOREIGNER, YOU MUST SET UP A FIDEICOMISO

Foreigners cannot directly own land in restricted zones (like coastal areas). Instead, you need a fideicomiso (bank trust) to legally hold and protect your property rights.

Why Are These Rules Sometimes Not Followed?

Let’s look at one common scenario where these rules might seem to be bypassed but still remain legal:

Buying Pre-Sale Properties in Mexico

One of the most popular ways to invest in Mexican real estate is through pre-sale developments. Here’s how it works:

1. You analyze projects and verify that the developer is reputable. If it’s your first purchase, avoid buying from new or unproven companies—stick with experienced developers.
2. Pre-sale means buying before construction is complete. The property does not yet exist, but legally binding contracts outline the purchase process.
3. You make an initial deposit (usually 30%) and finance the rest in installments until delivery.

The Advantage of Pre-Sales?

You buy at a significantly lower price since market values are based on completed properties. By the time construction is finished, your property will have appreciated in value, maximizing your return on investment.

Now, does this mean the three golden rules don’t apply? Not at all. They must be enforced at the time of finalizing the purchase deed. If a pre-sale deal doesn’t involve these elements at any stage, consider it a red flag 🚩.

Buying a Property Under an Existing Fideicomiso

If you’re purchasing a property that is already under a fideicomiso, expect delays. The process involves:

• Paying transfer taxes and legal fees
• Closing or transferring the existing fideicomiso, which takes at least a month
• Covering closing costs, which typically range from 5% to 8% of the property price

What You Should NEVER Do

Never, under any circumstances, put down a deposit in cash or through an informal payment without a notary’s involvement. If someone asks you to do this, it’s not an “opportunity”—in 98% of cases, it’s a scam.

At the end of the day, all three golden rules must be followed to ensure a safe and legal property transaction. 🚀