How to change ownership of real estate in Mexico?

Authored by the expert who managed and guided the team behind the Mexico Property Pack

Everything you need to know before buying real estate is included in our Mexico Property Pack

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THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Mexico, Brazil, Colombia, Argentina, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Mexico. If you'd like to learn more about us, you can check our presentation page.

What type of property is it and where exactly is it located in Mexico?

Mexican real estate falls into three distinct categories that determine your transfer options and legal requirements.

Private property represents the most straightforward option for ownership transfers. These properties, owned by individuals or entities, can be freely bought, sold, and transferred without government approval. Private properties include most urban condominiums, houses in city centers, and developments outside restricted zones.

Social property includes ejido (communal) land and requires special consideration for transfers. Ejido land covers approximately 52% of Mexico's territory and was historically granted to rural communities. Before any transfer to foreigners can occur, ejido land must undergo privatization through a dominio pleno process, requiring approval from the ejido assembly and conversion to private property status.

Public property belongs to the Mexican state and cannot be transferred to private individuals. This category includes beaches, archaeological sites, and other government-designated areas that remain under federal control regardless of adjacent private property ownership.

Location determines foreign ownership restrictions through Mexico's restricted zone policy. Properties within 50 kilometers of coastlines or 100 kilometers of international borders require special ownership structures for foreign buyers. As of June 2025, this affects prime real estate markets including Cancún, Puerto Vallarta, Playa del Carmen, Los Cabos, and border cities like Tijuana and Ciudad Juárez.

Is the current title deed (escritura) in your name or someone else's, and is it free of any liens or disputes?

The escritura pública serves as Mexico's definitive proof of property ownership and must be thoroughly verified before any transfer.

Title deed verification requires obtaining a Certificado de Libertad de Gravamen (no-lien certificate) from the local Public Registry of Property. This document, valid for 30 days from issuance, confirms the property has no outstanding debts, mortgages, or legal claims against it. The certificate costs approximately $20-50 USD and takes 3-7 business days to obtain.

Ownership status must match the seller's legal name exactly as it appears on official identification. Any discrepancies in names, even minor spelling differences, can delay or invalidate the transfer process. If the property is owned by multiple parties, all owners must consent to the transfer and appear during the signing process.

Dispute verification extends beyond the Public Registry to include checking the RUG (Registro Único de Garantías) for movable asset liens and reviewing municipal records for unpaid property taxes or utilities. Outstanding predial (property tax) debts can transfer to new owners, making current payment verification essential.

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Trust properties require additional verification of the fideicomiso agreement, bank consent for transfer, and confirmation that the trust has not expired or been terminated. Trust transfers often involve more complex documentation and higher fees than direct property transfers.

Are you transferring ownership through a sale, inheritance, gift, trust termination, or another method?

Transfer method determines the specific legal requirements, tax obligations, and documentation needed for your property ownership change.

Sales represent the most common transfer method, requiring a formal purchase contract (contrato de compraventa) that specifies payment terms, property condition, and closing timeline. The contract must declare the true purchase price to avoid future capital gains tax complications when the new owner eventually sells.

Inheritance transfers require probate proceedings in the jurisdiction where the deceased resided, along with death certificates and heir identification documents. Foreign heirs may need to obtain apostilled documents from their home countries, translated into Spanish by certified translators.

Gift transfers between family members (spouses, parents, children, grandparents, grandchildren) receive tax exemptions, while gifts to non-relatives face taxation on amounts exceeding three times the UMA (Unidad de Medida y Actualización), approximately $4,000 USD as of June 2025.

Have you verified if the property is in a restricted zone, which requires a fideicomiso (bank trust) or Mexican corporation for foreigners?

Mexico's restricted zone encompasses all coastal areas within 50 kilometers of shorelines and border regions within 100 kilometers of international boundaries, affecting foreign property ownership rights.

Zone verification can be confirmed through the Ministry of Foreign Affairs (SRE) online mapping system or by consulting with a qualified Mexican attorney. Properties in major tourist destinations including Cancún, Riviera Maya, Puerto Vallarta, Los Cabos, Mazatlán, and Acapulco fall within restricted zones and require special ownership structures for foreign buyers.

Fideicomiso (bank trust) represents the most common foreign ownership solution in restricted zones. Under this arrangement, a Mexican bank holds legal title to the property while the foreign buyer retains all usage rights as the trust beneficiary. The trust lasts 50 years with automatic renewal options and can be transferred to heirs or sold to other parties.

Fideicomiso setup requires a permit from the Ministry of Foreign Affairs (SRE), costing approximately $1,000 USD, plus bank establishment fees ranging from $2,000-5,000 USD depending on property value. Annual trust maintenance fees typically range from $500-1,500 USD, paid directly to the trustee bank.

Mexican corporation ownership provides an alternative for foreign buyers seeking direct title ownership in restricted zones. This option requires establishing a Mexican corporation with a Calvo clause, renouncing diplomatic protection rights, and maintaining corporate compliance including annual tax filings and registered agent services.

Properties outside restricted zones allow foreigners to hold direct title ownership through the standard escritura pública process, similar to Mexican nationals, without requiring trust structures or corporate entities.

What documents will you need to gather before initiating the process?

Document preparation requires assembling original paperwork, certified copies, and official certificates that prove property status, owner identity, and tax compliance.

1. Original escritura pública - The current title deed showing legal ownership, along with any amendments or modifications to the original deed
2. Official identification - Valid passport for foreigners, plus RFC (tax identification) and CURP (population registry) numbers for Mexican residents
3. Certificado de Libertad de Gravamen - No-lien certificate from the Public Registry of Property, valid for 30 days from issuance
4. Predial tax receipts - Current year property tax payments plus verification of no outstanding amounts owed to the municipality
5. Cadastral certificate - Official document detailing property dimensions, boundaries, and current cadastral value for tax assessment purposes
6. Utility payment confirmations - Current water, electricity, and other service bills showing accounts in good standing
7. Trust documentation - For fideicomiso properties, include the original trust agreement, bank consent letter, and valid SRE permit
8. No-debt certificates - Municipal and state certificates confirming no outstanding obligations related to the property

Additional documentation requirements vary by transfer method and buyer status. Inheritance transfers require death certificates, probate documents, and heir identification papers, all apostilled if issued outside Mexico. Corporate buyers need board resolutions, corporate bylaws, and legal representative authorization documents.

Foreign buyers should obtain apostilled documents from their home countries before arriving in Mexico, as this process can take several weeks when done internationally. All foreign documents require certified Spanish translation by Mexican-authorized translators.

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Document validity periods vary significantly - no-lien certificates expire after 30 days, while cadastral certificates remain valid for 60 days. Plan document gathering timing carefully to avoid expiration during the transfer process.

Who should you hire to handle the legal side of the transaction — a notario público, lawyer, or both — and how do you choose a reliable one?

A notario público is mandatory for all property transfers in Mexico, while hiring an independent lawyer provides additional protection and due diligence that can prevent costly mistakes.

Notario público selection requires understanding their unique role as state-appointed legal officers who draft deeds, calculate taxes, and register transfers with government authorities. Unlike U.S. notaries, Mexican notarios públicos are licensed attorneys with exclusive authority to formalize property transfers and charge fees of 0.5-1.5% of property value.

Independent lawyer hiring offers crucial protection for foreign buyers unfamiliar with Mexican real estate law. A qualified lawyer conducts title searches, reviews contracts, identifies potential issues, and ensures compliance with foreign ownership regulations. Never rely solely on the seller's notario público, as their primary duty is to the party who contracted their services.

Professional selection criteria include AMPI (Mexican Real Estate Professional Association) certification for real estate agents, Colegio de Notarios membership for notarios públicos, and international law credentials for attorneys serving foreign clients. Verify credentials through official professional associations and request references from recent clients.

Red flags when selecting professionals include requests for upfront payments without signed contracts, promises of expedited government processing, or suggestions to use prestanombres (straw buyers) for property ownership. Legitimate professionals provide written fee estimates and maintain transparent communication throughout the process.

Cost considerations include notario público fees of 0.5-1.5% of property value, independent lawyer fees of $2,000-5,000 USD for standard transactions, and additional costs for specialized services like trust setup or corporate formation. Budget these professional fees when calculating total transaction costs.

What government offices or registries must be involved, and what taxes and fees will you need to pay at each stage?

Property transfers involve multiple government entities with specific fees and processing times that add 6-8% to total transaction costs.

Public Registry of Property (Registro Público de la Propiedad) serves as the primary recording office for ownership changes, charging registration fees of 0.3-0.8% of property value depending on the state. Registration processing takes 1-3 months after deed signing, during which the property remains in legal transition.

Municipal offices collect predial (property tax) and issue required certificates for transfer completion. Annual predial rates range from 0.05-1.2% of cadastral value, varying significantly by municipality. Mexico City charges higher rates than smaller cities, while beach destinations often impose premium rates on luxury properties.

State tax authorities collect the Impuesto Sobre Adquisición de Inmuebles (ISAI) or acquisition tax, ranging from 2-5% of purchase price or cadastral value, whichever is higher. This tax must be paid within 15 days of deed signing to avoid penalties and interest charges.

Ministry of Foreign Affairs (SRE) involvement is required for restricted zone properties, charging approximately $1,000 USD for fideicomiso permits plus annual renewal fees. SRE processing takes 2-4 weeks for new permits and 1-2 weeks for existing trust modifications.

Additional government fees include certified document copies, translation verification, and apostille services for foreign documents. Budget an extra $500-1,000 USD for miscellaneous government processing fees that vary by transaction complexity.

How do you properly draft and sign the transfer contract, and what are the common mistakes to avoid in the wording?

Contract drafting requires precise language, comprehensive terms, and legal compliance to ensure enforceable agreements that protect both parties' interests.

Promesa de compraventa (preliminary purchase agreement) establishes the framework for the transaction, including purchase price, closing timeline, and contingency conditions. This binding agreement typically requires a deposit of 5-10% of purchase price and gives buyers time to complete due diligence and arrange financing.

Final contrato de compraventa must be drafted in Spanish by the notario público and include specific clauses covering property description, payment terms, closing date, and dispute resolution procedures. The contract becomes legally binding when signed before the notario público with all parties present.

Critical contract elements include accurate legal property description matching the escritura pública, clear payment schedule with specific dates and amounts, and detailed contingencies for financing, inspections, or document verification. Omitting any essential element can void the contract or create enforcement difficulties.

1. Property undervaluation - Declaring a purchase price below fair market value to reduce taxes creates future capital gains tax liability for the buyer
2. Vague contingency clauses - Unclear conditions for financing or inspection can trap buyers in unfavorable agreements
3. Missing dispute resolution terms - Without specified arbitration or legal jurisdiction clauses, contract disputes become expensive and time-consuming
4. Incomplete payment terms - Failing to specify exact payment dates, methods, and penalties for delays creates confusion and potential legal issues
5. Inadequate property description - Incomplete or inaccurate property boundaries and features can lead to ownership disputes

Contract amendments require formal modification through the notario público and cannot be changed through informal agreements between parties. Any changes to terms, conditions, or closing dates must be documented officially to maintain legal validity.

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Escrow arrangements provide payment protection for foreign buyers, with funds held by trusted third parties until all conditions are met. While not mandatory, escrow services reduce payment risks and ensure sellers cannot access funds before completing all transfer requirements.

When and how is the change of ownership recorded with the Public Registry of Property?

Ownership recording follows deed signing and requires specific documentation submission to the Public Registry of Property within established timeframes.

Registration submission occurs immediately after the notario público finalizes the deed signing ceremony, with the notario responsible for delivering all required documents to the Public Registry of Property. This submission must occur within 15 days of signing to avoid penalties and maintain legal priority over competing claims.

Required documentation for registration includes the original signed deed, tax payment receipts, identification copies of all parties, and any supporting documents like trust agreements or corporate resolutions. Missing documentation can delay registration for weeks or months while parties gather additional paperwork.

Processing timeline varies by jurisdiction but typically ranges from 1-3 months for standard transactions in major cities, with rural areas often requiring longer processing periods. Mexico City and tourist destinations generally offer faster processing due to higher transaction volumes and improved administrative systems.

Registration confirmation arrives through an updated escritura pública showing the new owner's name and registration date. This document serves as official proof of ownership and should be stored securely as the definitive title evidence for future transactions or legal proceedings.

Priority protection begins when documents are submitted to the Public Registry, not when processing completes, meaning properly submitted transfers receive legal priority over subsequent claims filed during the processing period. This protection ensures legitimate buyers cannot lose their ownership rights due to administrative delays.

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How can you ensure the cadastral value and tax information (predial) is correctly updated to the new owner's name?

Cadastral and tax record updates require separate procedures with municipal authorities to ensure proper tax billing and ownership recognition.

Municipal notification must occur within 30 days of deed registration using the updated escritura pública as proof of ownership change. Each municipality has specific procedures and forms for updating cadastral records, with some offering online systems while others require in-person visits to municipal offices.

Predial tax account transfer involves updating the taxpayer information, billing address, and payment responsibilities associated with the property. New owners become liable for all future tax payments from the deed signing date, regardless of when cadastral records are updated.

Documentation requirements include the original or certified copy of the new escritura pública, official identification of the new owner, and proof of previous tax payments. Some municipalities require additional forms or certificates to complete the cadastral update process.

Tax assessment verification ensures the cadastral value accurately reflects current property characteristics and improvements. Property modifications, additions, or market changes may warrant cadastral value adjustments that affect future tax obligations.

Billing address updates prevent missed tax notices and penalties by ensuring all future predial bills reach the new owner. Municipalities typically send annual tax bills between January and March, with payment deadlines varying by location but generally falling between April and June.

Are there any special rules or exemptions if the transfer is between family members or involves ejido or communal land?

Family transfers and ejido land transactions involve special legal frameworks with unique requirements and potential tax advantages.

Family transfer exemptions apply to gifts between spouses and lineal relatives (parents, children, grandparents, grandchildren), eliminating acquisition taxes and reducing notario público fees. These exemptions require proof of family relationship through birth certificates, marriage certificates, or other official documents.

Inheritance transfers receive complete tax exemption for direct heirs, though foreign heirs may face additional documentation requirements including apostilled documents from their home countries. Inheritance through fideicomiso requires trust amendment rather than complete ownership transfer.

Ejido land transfers require conversion from social to private property through the dominio pleno process before any sale to foreigners can occur. This conversion requires approval from the ejido assembly, PROCEDE (land certification program) participation, and registration with the National Agrarian Registry.

Communal land restrictions prevent sale to non-community members until conversion to private property occurs. This process can take months or years and requires extensive documentation of community agreements and government approvals.

Ejido assembly consent requirements mandate approval from the community collective before any land privatization can proceed. Foreign buyers should verify ejido status early in the due diligence process, as ejido land cannot be purchased directly by non-Mexicans under any circumstances.

What are the common pitfalls foreigners encounter in Mexican property transfers, and how can you avoid them?

Foreign buyers face specific risks related to unfamiliarity with Mexican legal systems, language barriers, and complex ownership structures.

Title verification failures represent the most costly mistake, where buyers purchase properties with unclear ownership, outstanding liens, or ejido status issues. Always hire independent legal counsel to conduct thorough title searches and verify all ownership documentation before signing any agreements.

Prestanombre schemes involve using Mexican nationals as straw buyers to circumvent foreign ownership restrictions, creating significant legal and financial risks. These arrangements lack legal protection and can result in complete loss of property investment when the Mexican national claims true ownership.

Restricted zone violations occur when foreign buyers attempt to purchase coastal or border properties without proper fideicomiso or corporate structures. Such purchases are legally void and can result in property forfeiture to the Mexican government.

1. Inadequate due diligence - Failing to verify property status, liens, and ownership history through proper legal channels
2. Language barriers - Signing contracts in Spanish without full understanding of terms and obligations
3. Tax underreporting - Declaring false purchase prices to reduce immediate taxes while creating future capital gains liability
4. Unlicensed professionals - Using unqualified agents, lawyers, or notarios without proper credentials and licensing
5. Payment without protection - Transferring funds directly to sellers without escrow or legal safeguards

Documentation fraud involves sellers presenting false or altered property documents, cadastral certificates, or tax payment receipts. Independent verification of all documents through government offices and professional legal review prevents these costly mistakes.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Currency exchange risks affect foreign buyers when property prices are quoted in USD but payments must be made in Mexican pesos. Exchange rate fluctuations between contract signing and closing can significantly impact final costs, making currency hedging strategies advisable for large transactions.

Escrow service utilization provides payment protection and ensures funds are only released when all conditions are met. While not mandatory, escrow services offer valuable protection for foreign buyers unfamiliar with Mexican legal protections and payment systems.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Baker McKenzie - Mexico Real Estate Law
2. Mexican Consulate - Property Acquisition Guide
3. ACU Desarrollos - Transferring Property Ownership
4. TheLatinvestor - Mexico Property Purchase Agreement
5. TheLatinvestor - Mexico Property Taxes
6. Global Property Guide - Mexico Taxes and Costs
7. Cross Border Law Firm - Trust Transfer Guide
8. PwC Tax Summaries - Mexico Individual Taxes