Foreigners may buy properties in México:

Foreigners may buy property in Mexico.On this case, we will be talcking about Costa Maya area:  If the property is not in the restricted zone (within 50 kilometers of the coast or 100 kilometers of the border) foreigners may hold title outright. If the property is within a restricted zone, the buyer must hold the property by way of a bank trust, called a Fideicomiso, or as a foreign-owned Mexican corporation.
 

FIDEICOMISO OR CORPORATION?

A fideicomiso is a real estate trust in which the trustee is a Mexican bank and the beneficiary of the trust is the purchaser of the real estate. Foreigners holding property as the beneficiary of such a trust have unrestricted use of the property and may buy, sell, lease and devise (dispose of by will) the property. Currently, the duration of such trusts is for a period of 50 years and the trust may be renewed for another 50 year period thereafter. There is no limit to the number of times the trust can be renewed. The annual fee for a fideicomiso is approximately $700 US. There is a limit to the size of the property which may be held in a fideicomiso. It must be 2000 square meters or less. If it is larger than 2000 square meters, you may have to take the property in the name of a Mexican corporation, (although the Mexican government may grant exceptions to the 2000 square meter rule).

The bank actually takes title to the property for the benefit of the foreign buyer and is obligated to follow the instructions of the foreign buyer regarding the disposition of the property. The buyer must get a permit from the Ministry of Foreign affairs before setting up the fideicomiso, but this can be done through the bank setting up the trust or a reputable notary or real estate attorney. (In Mexico, notaries are different than in the US. They are appointed by the governor, must be attorneys, have three years experience in a notary's office and have passed a test among other requirements. Many real estate transactions in Mexico are handled by notaries.)

Financing

One problem with purchasing property in Mexico is the almost complete lack of financing for buyers. There have been some changes in recent years, but it is still somewhat difficult to get a real estate loan. Some sellers will owner-finance with a substantial down payment and good credit references.

Title Insurance

At this writing, we are not aware of any title companies doing business in the Yucatan. Stewart Title Company has opened offices in Mexico City, but is not yet writing policies in the Yucatan Peninsula. Since many buyers from the US and Canada are used to closing their sale through a title company, they may find it is a little different in Mexico where most real estate deals are closed through notaries who will check to make sure the title is good and that there are no outstanding liens or taxes or any other problems with the title. It is strongly advised never to write a check for earnest money to the seller, but instead only to a bank with an earnest money account.

Ejidos

Another important note regarding buying real estate in Mexico is to make sure the property is not "ejido" land. Ejido land is communal agricultural land, the distribution and use of which is goverened by local ejido councils. That land cannot be sold with clear title until the title has been regularized, that is, an escritura or official title has been issued by the Mexican government. In the past, much confusion and concern has been expressed about stories of people buying property in Mexico only to have it taken away from them at a later date after it was developed.

How to confirm if the Property has legal Title Deeds:

That is why reputable notary or real estate attorney can help make sure the title to the property you are buying is clear (being really easy and simple for to be checked on the correspondant bureaus where all the legal properties with Official titles are inscribed ("Registro Público de la Propiedad" Gubernamental official bureaus, where are inscribed all the legal properties with legal title deeds) . That is very easy to be checked for any attorney or Notary, getting the correspondant document showing veracity,  legal situation of any property, getting with it confidence for to buy the propery.

Foreigners buy property in Mexico every day without incident and many are happily living throughout the country. As with any major purchase, it is always advisable to seek reliable professional advice and to move cautiously before putting any money down. By following a few simple, common sense rules, you too can own property in Mexico.