Titled property is simply land with an official record of who owns it through a Certificate of Title registered with the Land Registry and the notary which is a federally recognized branch of government . If your land is titled that means you and YOU ONLY are the sole owner of this property.
Laws came into effect in the 1990s that made it possible for foreigners to secure the purchase of legal title to land and property in Mexico directly, or through a special type of trust if the property is situated near the coast or a land border. To be more specific in owning property through a trust located in the ¨restricted zone¨ (property located 50 km´s from the coast or 100 km´s from the border) you can refer to the commonly asked questions under FAQ´s to learn more about a ¨feidiecomsio¨. This means that when you buy property in the restricted zone, its your trust that was created by your Mexican Real estate attorney that owns the property and you and whom ever you would appoint as beneficiaries would be in control of that trust. Again, please refer to the commonly asked questions for more information on bank held trusts in Mexico.
There is an associated cost when titling land and therefore many locals decide not to move forward with this process; thus devaluing the worth of the property significantly. This then allows them to and try and sell this property to foreigners who are not educated on buying untitled land at a very attractive price a ¨to good to be true price¨. Again, this is why one of the very first steps you need to adhere to when buying real estate in Mexico is to find yourself a reputable real estate attorney. If you find the ideal property, then the attorney will do all the necessary due diligence to ensure that you are buying titled property. Whats the worst that could happen if you buy untitled property? Well, it is quite simple really; the land can be taken over without notice and there wont be anything that you can do about about it in any court of law. If you would like a recommendation on an attorney to work with, please do not hesitate to contact us.