Guiding My First Clients in Mexico: The Most Common FAQ's I Was Asked

Guiding My First Clients in Mexico: What Buyers Asked and How I Answered

Landing in Mexico meant rebuilding fast. There was no onboarding deck for cross-border real estate, only questions, legal gaps, and buyers asking for clarity. I structured everything from scratch and documented each answer as I went.

These were the most frequent buyer questions, and this is how I responded.

Can foreigners legally purchase property in Mexico?
Yes. Buyers can own property outright in most areas. If the property is located within 50 kilometers of the coast or 100 kilometers from a border, ownership is routed through a fideicomiso.

What is a fideicomiso, and when is it required?
A fideicomiso is a renewable 50-year bank trust. The title is held by a Mexican bank, but the buyer retains full use, resale, and improvement rights. It’s required in all restricted zones and is fully compliant with Mexican law.

What are typical closing costs?
Closing costs range from 5 to 7 percent of the property price. This covers:

• Notary and legal fees

• Transfer tax

• Trust setup (if applicable)

• Property registration
  

What documents are needed

• Valid passport

• FMM visa or residency card

• Signed purchase agreement

• Trust paperwork if applicable. Residency is not mandatory, but it helps with post-sale management.
  

Do I need to speak Spanish?
No. Transactions are written in Spanish, but I provide full bilingual support and walkthroughs. Legal translations are included and verified by licensed professionals.

How long does the process take?
Expect 30 to 90 days, depending on:

• Title review

• Trust setup timeline

• Developer or seller coordination

• Notary scheduling, I document key milestones and set expectations from day one.
  

What types of properties are available to foreign buyers

• Colonial homes in Oaxaca

• Beachfront condos in Puerto Escondido and Tulum

• New builds and urban lots in Mexico City

• Small farms and rural retreats for lifestyle investors
  

Are prices lower than in Canada or the U.S.?
Yes. Many lifestyle and vacation properties are significantly more affordable, but pricing varies by region, build quality, and demand cycles. I provide full comps during onboarding.

Is financing available to foreigners?
Financing is limited but possible. Buyers often choose:

• Developer payment plans

• International lending programs

• Private mortgage solutions via law firms. Cash is the most common. I walk each client through the pros and cons.

Are there ongoing costs after purchase?
Yes.

• Annual property tax (predial) typically 0.1 to 0.3 percent

• HOA fees for managed developments

• Utilities, insurance, and maintenance. All recurring expenses are mapped and budgeted in advance.

Can I earn rental income on my property?
Yes. Foreign owners can legally rent their property if income is registered and taxes are paid. Many investors use entities for better invoicing, write-offs, and reporting.

What does the notary do?
The notary finalizes the transaction, ensures compliance, verifies ownership, and records the sale. They’re a neutral legal authority and are required for every valid closing.

Do I need a lawyer?
It’s highly recommended. Legal professionals:

• Review contracts

• Confirm title and seller status

• Manage trust coordination

• Mitigate risk at every step, I refer clients only to vetted legal teams with real estate expertise.
  

What are common mistakes to avoid

• Skipping title validation

• Ignoring fideicomiso rules in restricted zones

• Proceeding without legal review

• Assuming North American norms apply, every step is different in Mexico. I document and explain each one.

Can I hold property through a trust or corporation?
Yes. Some buyers choose to set up entities for rental management, tax planning, or portfolio structuring. This requires coordination with an attorney and accountant.

In the end, every question matters. Every answer is documented. Every step is designed for clarity and follow-through.

Schedule a one-on-one appointment or begin now with our AI Assistant.
We’re ready to guide you through every milestone.

Christy & Horacio