If you’re considering the purchase of real estate in Mexico and you’re not a Mexican citizen, you should know that Federal law limits foreign ownership of property within 50 km of the coastline and areas designated as border zones. To meet the requirements of the law, coastal property is held in trust, called a Fideicomiso, usually by a Mexican bank.

So do you really own coastal real estate in Mexico within 50 km of the coastline? Yes. Trusts are one hundred percent safe, and work to both establish and protect your ownership rights. In fact, the only way to guarantee your ownership stake is to use the Fideicomiso system.

The local Notario Publico will also register your purchase. In the case of a land purchase, registration is an essential step in establishing your ownership claim. Don’t be tempted to assume that the Notario Publico is a notary public like those in the US. In Mexico, the Notario Publico functions more like a judge than a notary. Notarios Publico must be Mexican by birth; must have studied for a minimum of six months under another Notario Publico; and must be a legal professional with the title of lawyer.

There are other age and character requirements for a Notario Publico, but these qualifications establish him or her to act as an arbitrator, mediator and judge; ensure that all documentation in a land purchase is correct and consistent with Mexican law; ensure that all taxes are paid; and formalize or register all land purchases. In Mexico, the Notario Publico can also issue judicial opinions and intervene in judicial proceedings.

The Fideicomiso system, along with formal registration of property by a Notario Publico, works to ensure your legal rights under Mexican law. When you are ready to purchase land in Mexico, you should work with a qualified attorney to ensure that your rights are properly established and recognized.

Photo Credit: diylibrarian