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To buy beach properties in Mexico you need a fideicomisowhat-is-fideicomiso

The only way for a foreigner to buy beach residential property in Mexico is through a fideicomiso wich is basically a bank trust that allows foreigners to own properties in what the Mexican law refers as Restricted zones, these restricted zones are any properties within 50 kilometers of the coastline or 100 kilometers from the Mexican border.

The fideicomiso consists of three parties:

  1. The trustor, the trustee and the beneficiary.
  2. The trustee is a Mexican bank or financial entity. The trustor (or seller in this case) is an individual or an entity, it’s the party that usually transfers title or management of the property, it's rights and benefits to the trustee, who holds them in trust.
  3. The beneficiary is the property buyer.

With the fideicomiso the foreigner buyer acquires irrevocable and absolute ownership rights to a property in Mexico through a 50-year renewable and transferable Bank Trust.

The fideicomiso provides the same legal rights and protection of ownership as a Mexican has under the law. It bestows upon the Beneficiary of the Trust absolute and irrevocable control over the property. It can be improved, mortgaged, bought, sold, inherited & willed.

The fideicomiso is not a lease, it is equivalent to a fiduciary in the US. The Mexican bank acts as the fiduciary, you and your heirs and assigns are the beneficiaries of the fideicomiso.

escrow-in-mexico

In Mexico there is no such thing as an escrow. All legalities are usually done by a notario.

Mexican law does not require an escrow service, but if does not stop you from using one. There are companies in Mexico wich will gladly provide this service.

There is also Title insurance

Title Insurance will protect you if any other previously unforeseen lien or charge is brought against the property before you took possession of the Title Deed. It is not a default step in the sale in Mexico, it's optional.