Foreigners interested in purchasing property in Mexico should consider the following in making any investment:

1. Understand that Mexico is a foreign country with a unique set of laws that must be adhered to in order to acquire recognizable rights in real property. Do not expect paperwork, procedure or costs to be the same as in the U.S.

2. If you are purchasing residential property in the restricted zone, you must buy through a Mexican Bank Trust. Don't use a corporation to acquire residential property. A trust is not a lease. To be sure that you are getting good title, purchase U.S. title insurance.

3. Real estate agents are not licensed in Mexico and escrow as we know it does not exist. It is imperative to use qualified professionals including a trustworthy Mexican agent or attorney, possibly in cooperation with a knowledgeable U.S. attorney since the Mexican professionals do not carry liability insurance.

4. Insist on U.S. style protections that are available in Mexico, including but not limited to inspections, U.S escrow, U.S. title insurance, U.S. appraisal, and U.S. financing. You can ask to have your earnest money held by a Mexican bank in a conditional deposit subject to the satisfaction of any contingencies that you negotiate in your offer to purchase, including issuance of a bank trust if applicable. Establishing an escrow account in the U.S. with Stewart Title Guaranty Company's Mexico Division in Houston, Texas is recommended. Get an estimate of closing costs before you make an offer.

5. When purchasing in a new home community or subdivision make sure that the improvements are in or that there has been a bond posted for the completion of the improvements. Ask for U.S. Title Insurance and a Mexican Bank Trust. In Arizona ask for a Public Report. Just because there is an offer made to sell a particular lot number does not mean that any such lot has been duly subdivided & recorded in the Public Registry of Property.

6. Be patient, transactions in Mexico may take longer than you anticipate. If someone suggests that you should purchase before your trust has been issued or without a Mexican Notary Public, beware! Mexican Notaries are official government lawyers who are uniquely empowered to formalize and record real property transactions.

Your purchase of Mexican real estate should be an investment, not a gamble. Many foreigners have paid money or built improvements on property that they cannot obtain legal rights to under Mexican law. The Mexican government in many cases has taken action to help the foreigner acquire recognizable rights because of widespread fraud or ignorance. At some point the Mexican government may draw a line and refuse to regularize such transactions. Foreigners are more educated now and they may be held responsible for acting in accordance with the law.