Owning a home in your own name at Lake Chapala

Where the trust rule applies

Mexico’s constitution doesn’t let foreigners own property directly within 100 kilometers (about 60 miles) of a border or 50 kilometers (about 30 miles) of the coast. In that zone, foreign buyers own through a bank trust, which has a yearly fee and has to be renewed.

Lake Chapala is more than 150 kilometers (over 90 miles) from the ocean and far from any border, so the rule doesn’t apply. No trust, no bank, no yearly trust fee. Your name goes on the deed (escritura).

This surprises a lot of people, because most of what’s written about buying in Mexico is about the beach towns. If someone tells you that you need a trust at Lakeside, they’re thinking of a different part of the country.

What you do instead

Just one form. Your notario files it with Mexico’s Foreign Affairs office (Secretaría de Relaciones Exteriores). In it, you agree that, for this property, you’ll rely on Mexican law, just as a Mexican owner would. It’s standard, and the notario handles it as part of the closing.

You don’t need residency to buy

A valid passport is all you need to buy. Residency is a separate matter about how long you can stay in Mexico. It does matter for other things, like bringing in your belongings, opening a Mexican bank account, driving, healthcare, and taxes if you sell later. Many buyers start on residency around the time they buy. It’s worth planning, but it won’t hold up your purchase.

What the notario does

In the US or Canada, you’d usually hire your own lawyer and work through a title company. Mexico works differently. The notario público is an official appointed by the state, whose job is to make sure the sale itself is sound. The notario:

• checks that the seller really owns the home and that it’s properly registered;
• gets a certificate showing there are no debts against it, and checks that property tax and water are paid;
• arranges or accepts the appraisal;
• works out, collects and pays the purchase tax, and the seller’s capital gains tax if any;
• writes the deed, collects the signatures, and registers it.

That’s a lot of protection. But the notario doesn’t work for you personally. You can still hire your own lawyer, and if anything is unusual, like a complicated ownership history, an inheritance, or a home owned by a company, you should.

The one kind of land to avoid

Not all land here can be sold legally. Ejido land is land owned by a farming community. Unless it has gone through a formal process to make it private, it can’t be sold the normal way, no matter how good the paperwork looks. The price may be tempting, but the deed won’t hold up.

The warning sign: there’s no registered deed (escritura) in the seller’s name. Instead you may be shown a transfer of rights (cesión de derechos), a farm-land certificate, or a private contract. A notario won’t close a sale like that, which is exactly why these sales happen without one. If a home can’t be closed by a notario, walk away, however long the family has lived there.

Two things to do when you buy

Name a beneficiary on your deed. In Jalisco you can name, right in the deed, the person who will inherit the home (a cláusula de beneficiario). When the time comes, the home passes to them through a notario, without a court case first. That’s much quicker and less expensive for your family. It’s easiest at closing, so tell your notario who you’d like to name before the deed is written.

Make a Mexican will as well. The beneficiary covers the house; a will covers everything else you own here, like a car, a bank account and what’s in the home. Without one, passing things on across borders can be slow and expensive for your family. A simple will made here, matching the one you have at home, doesn’t cost much and can save your family a very hard year. Your notario can do both. Many people mean to, and never get around to it.

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This is a guide, not legal advice. It’s based on how buying at Lakeside has worked for us and our clients, and the rules can change. Before you sign anything, check the details with a notario or a lawyer. We’re glad to suggest a few, and to come along to the meeting.