In 1972, the government of Mexico initiated a legal process of entitlement to protect foreigners known as the fideicomiso. Simply put the Mexican Government issues a permit to the federally chartered bank of your choice.

The process of buying real estate in Mexico is similar to that in the United States and Canada.

A Notario is a lawyer whose position is similar to that of an American or Canadian judge, and NOT that of a notary public. A Notario in Mexico has legal training followed by difficult examinations and several years of apprenticeship. Some compare it to the bar and the CPA exams all in one. There are a small number of them in each State and that States’ Governor must appoint them.

Between the years 1517 and 1822 Spain held claim to the Mexican land. In 1822 Mexico declared independence from Spain but even so wealthy foreigners, the Church and the upper class Mexicans continued to lay claim to much of the land. Also during the 19th century, Mexico lost about 1/3 of their country to the U.S. Texas in 1845, and in 1848 the territory that became California, Nevada, Utah, most of Arizona, and parts of New Mexico, Colorado, and Wyoming were purchased for $15,000,000.

The first and foremost thing a buyer must consider is whether the seller of the property has legal title to the property, and if so, whether the property can be legally transferred An adequate title search of the property should be performed.

These title investigations should include a lien search of the property, subdivision approvals and permitted development licenses for the land, in addition to an extended search of the chain of title.

When you choose a RE/MAX Sales Associate to sell your home or help you purchase a new home, you'll experience a whole new level of service.

First, RE/MAX Associates are The Hometown Experts With a World of Experience®. Across the globe, they make their living in the same communities in which they live. They're the people next door, or just down the block.

Selecting the right real estate professional to help you buy or sell your home is essential to a smooth transaction. For the best possible experience, you should consider an agent's experience, personality and responsiveness in your overall evaluations.

Here are some tips to help you choose and work with your agent.

By law, foreigners are required to pay a “Mexican Capital Gains Tax,” at the time they transfer their rights to their “Fideicomiso.”  Normally this “Mexican Capital Gains Tax” is withheld from the proceeds of your sale.

The “Capital Gains Tax” is based on 25% of the sales price or 28% of the gain. An example: If the value, which shows on the Fideicomiso, was $40,000.00 and seller is transferring title at a sales price of $150,000.00 the gain at 25% of sales price would be $30,000.00.