1001 / Can U.S. individuals purchase land in Mexico for investment purposes?

Generally, yes, though there are certain conditions and restrictions that must be understood first. U.S. individuals and other non-Mexican individuals may directly own real estate in Mexico. However, U.S. individuals may not directly own any real estate parcels within an area designated as the “restricted zone” (see Q 1002).

From a very practical position, any U.S. individual seeking to purchase real property in Mexico should understand the following basic premises:

(1)     The real estate industry in Mexico is generally unregulated. Real estate agents and brokers are neither licensed nor regulated as they are in the U.S. In addition, there is no “Office of the Real Estate Commissioner” or equivalent in Mexico to provide any type of consumer protection or advocacy. In any Mexican real property transaction, extreme caution must be exercised before executing any contract.

(2)     Any acquisitions in the “restricted zone” by a U.S. individual must be undertaken with the following entities: