Mexico New Real Estate

In the 1917 Mexican Constitution, foreign ownership was forbidden in the Restricted zone because of Mexico's long history of land ownership dominated by foreigners (article 27). In 1973, a series of foreign investment laws were implemented as the Mexican government saw that foreign investment could have a positive impact on the economy. As a result of the relaxation of the laws on foreign investment, the trust system was created in 1993. Overall, it was much easier to create a trust system for foreign ownership than completely changing the Mexican Constitution.

It is a three step process which starts with the Offer to Purchase, followed by the Promissory Agreement and the Irrevocable Trust Agreement. Offer to Purchase: Very Similar to an Offer to Purchase in the United States and Canada. It is an offer to purchase a property at a given price within a certain time period and is subject to review of the full documents. At this stage, a refundable deposit is held by the seller and is fully refundable if the buyer decides not to proceed. Promissory agreement: This is not the final document, but it is legally binding and it outlines the details and terms of the transactions once all the negotiations are final. The Irrevocable Trust Agreement: The execution of an Irrevocable Real Estate Trust Agreement is the means by which title of the property is irrevocably transferred to the trust.