Because of Mexican Constitutional laws, foreigners cannot own land within the “restricted zones”: 100km from the border and 50km from the coasts. This restricted zone was originally meant to protect Mexico from foreign invaders, and the Mexican Government has created a simple way around it: the bank trust. A bank trust consists of an agreement between the home-buyer and a bank that acts in the purchaser’s name to actually hold the title on the property in Mexico. Therefore, the buyer has all rights associated with owning the home in Mexico, but it is technically listed in the public registry as “bank property”.

A bank trust protects foreign citizens from possible government land reclamation. The fees are subject to change but currently they are as follows:

• Government permit-$11,800MXP—Fixed, one-time set-up fee (about $1,180 USD)
• Foreign Public Registry-$4,000MXP—Fixed, one-time set-up fee (about $400 USD)
• First Year Fiduciary Fee-approx.$5,950MXP—One-time set-up fee that varies according to bank, usually approximately $595 USD
• Trustee Acceptance Fee-approx. $5,950MXP—One-time set-up fee that varies according to bank, usually approximately $595 USD
• Annual Fee- Between $300-$ 500USD (Period of 50 yrs.)

All information concerning the bank trust should be given to you by the company from which you buy your home.

The Notary Public has a very different role in Mexico than in other countries. He or she will be the primary processor of your Real Estate purchase in Mexico, and must be involved in every step of the transaction to verify authenticity of documents and the legality of the process. Notary Public fees can be quite hefty, approximately 5% of the total value of the house, but they include all assessments, appraisals and acquisition fees tacked on by the government.