Buyer's Guide

Yes, Cozumel is a restricted zone according to federal law. This indicates that there's an area of 100 kilometers along the border, or 50 kilometers from the coast to inland which cannot be owned by a foreigner.

In order for a foreigner to own property within this zone, it is necessary to do it thru a Fideicomiso.

Unlike in some countries, property title verification in Mexico is not always straightforward. Before purchasing, ensure the property has a clean title and no outstanding debts or legal disputes. A title search conducted by a lawyer can confirm that the property is legally registered and free of any encumbrances. This step is essential to avoid future complications.

The direct translation in english would be a trust. A property in a trust means that the bank will act as a trustee on behalf of the foreigner client, making the purchase or sale process easier.

This fideicomiso (trust) can be established for a maximum term of 50 years. This can be renewed and transfered to a third party or to a pre-appointed heir.

The bank trust is needed because Cozumel Island is in a Restricted Zone, which is the zone 100kms along the border or 50 kms along the coast.

The closing process in Mexico can take longer than expected, often ranging from 30 to 90 days. Buyers should budget for additional costs such as:

• Notary fees (a notary public in Mexico has more legal authority than in the U.S. or Canada)

• Transfer taxes (typically 2% to 4% of the property value)

• Legal fees and escrow services

Understanding these costs upfront can help you avoid surprises at closing.

Once a property is in a Promise of Sale Agreement (or Promissory Contract) signed by sellers and buyers, the actual sale starts.
The Notary Lawyer (chosen by buyers) will provide both parties with an Estimated Closing Costs, including the taxes that each party should pay. In order to start the process of the Trust, buyers will send funds to cover the Bank fees necessary for the Trust.

The permit to have a Trust is given by the Federal Ministry of Foreign Affairs, and the the Bank or Notary Lawyer oversees obtaining it. Once the permit is granted, the Notary Lawyer will draw the Deed or Escritura, which will contain all the information of the
property, owners, sellers, beneficiaries, etc. The Bank chosen to hold the Trust, will work together with the Notary Lawyer in order to have the Trust Deed approved and ready to be signed by both parties. Once the Trust Deed is signed, and full amount of sale is paid, the new owner is ready to start enjoying his/her new property!

The Trust has an annual fee which will be paid by the owner of the property. The Notary Lawyer is a government appointed Lawyer who processes and certifies all Real Estate transactions. Also, Powers of Attorney, formation of Corporations, Wills, etc., are handled and duly registered through the Office of a Notary Lawyer or Notario Público, who also collects all taxes involved and pays them to the Government.