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 of a border or 50 kilometers 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 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 to be treated like a Mexican citizen when it comes to this property, and not to ask your own government to step in over it. 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.

One thing to do after you buy

Make a Mexican will for your Mexican home. Without one, passing a home 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 it. 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.