Technically, as a foreign buyer, you cannot buy property that lies within 50 kilometers of the high tide line, or within 100 kilometers of an international border. (IL tip: “Technically.” We’ll explain, in just a moment, how to legally bypass this restriction.)
Second, you cannot own ejido land. This type of land was established in 1917 as a result of the Mexican revolution. It is not private property; it is government land granted for use by members of local ejidals, something like Native American land in the U.S. and Canada. This land can be converted into private property, but the process is long and complicated. It is outright illegal to own ejido land in the restricted zones (50 kilometers from beachfront and 100 kilometers from international borders), and it’s risky elsewhere.
We recommend that you don't even consider the purchase of ejidal land. One of the most important aspects of title research is making sure the plot you’re interested in has never been ejidal land or, if it was, that it was successfully privatized a long time ago and never challenged. Too much can go wrong. Just don’t do it.
By purchasing title insurance, you make sure you hold clear title to your property and that, should anybody dispute that title, you’ll have an advocate who will defend your claim in the local courts. We highly recommend you buy title insurance, particularly for undeveloped land. And if the title insurer you’ve hired says he will not insure the property...don’t buy it.
What could go wrong? An all-too-common and potentially costly problem involves developers who do not get the proper zoning and subdivision permission to develop their land for resale. They might be marketing a project that appears to be above board. You might see survey stakes marking the lot lines and have in hand a glossy brochure with drawings of what the plans entail. But unless you can be absolutely sure you’ll get your own independent title to your lot, don’t buy. And the only way to be sure is to have a title insurance company investigate the project for you. We recommend First American Title Insurance.
First American also offers escrow services, in which it acts as a neutral disbursing agent between buyers and sellers on a particular real property transaction and disburses following instructions from both parties. Funds deposited are held in a non-interest-bearing bank account, FDIC insured, and are typically disbursed via wire transfer.
For more information on First American Title Insurance, contact Turalu “Tuey” Brady Murdock.