Mexico’s real estate ownership laws have never been more welcoming to foreigners who have been attracted by this country's exquisite geography, warm climate, reasonable cost of living, relaxed lifestyle, and overall quality of life. Yet still, there are significant differences between buying real estate in Mexico and buying real estate in the United States or Canada. For the traveler interested in buying property in Mexico, it's important to know how foreign ownership works, what the buying process involves, what's available, and what the prices are like. 

Since 1973 foreigners (non-Mexicans) have been able to purchase coastal and border properties if done through a Mexican bank trust, known as a Fideicomiso. Essentially, it is like a Trust in the United States -the bank holds the legal title to the property with all rights and privileges of ownership, including exclusive use and enjoyment held by the Trust beneficiary-the foreigner.

The foreign beneficiary enjoys the right to occupy or rent the property, and may cause the transfer of title or beneficiary transfer to the property to any legally qualified person he may designate. Beneficiaries are also allowed to modify their property in accordance with local zoning regulations.

These Trusts have an initial term of 50 years. They are generally renewable at any time or at the end of the 50-year period for a relatively small fee for additional 50-year periods. The property may also be sold to a person legally authorized to own land or to another foreigner via a Trust, at any time, with the foreign buyer capturing the amount of the appreciation of the property value. This process is designed to protect the rights of foreigners and ensure the transactions are legal.