Penasco, and other parts of Mexico are superior investments. Studies show that Rocky Point is in the fourth year of a 25 year upward real estate cycle. Rocky Point is attracting investments at a higher rate than any other resort area in Mexico, surpassing even Cancun and Los Cabos. Long term real estate appreciation will be driven by a limited supply of beachfront property paired up against the virtually unlimited income and population growth of the southern U.S.

Buying property in Mexico can be a good investment, financially as well as emotionally, since Americans and Canadians enjoy approximately six times as much buying power in Mexico as in their home countries. Recent changes in Mexico's economy suggest that this may even be a conservative estimate.

Under a Bank Trust the beneficiary (buyer) has all the rights of ownership: the right to buy, sell, lease, use, bequeath, improve, transfer, and encumber. The Bank Trust is established by the government and gives foreigners the same rights of ownership as Mexican citizens. The only difference is that they never receive the actual fee simple title. It is held in trust for them by a bank. When first established, the term of a Bank Trust was for 30 years only and was made renewable for another 30 years. In 1993 the term was extended to 50 years, and renewable for another 50 years.

Mexican law also protects beneficiaries of the Bank Trust from any problems that the bank may have. A Bank Trust can never be seized to satisfy judgments against the bank. Mexican law, in 1994, established that Bank Trust deeds are to be 50-year terms and are renewable indefinitely in 50-year increments.

Mexican notaries, Notaria Publica, are government appointed attorneys specifically trained to handle the legalities of property transfers. Notaries are the only ones legally able to transfer title. They also make sure the title is clear from the local to the national level, make sure no liens exist and collect any taxes due on the property. Notaries perform title searches similar to American title companies guaranteeing your property is unencumbered.

The country of Mexico is attempting to accommodate foreign investors in the real estate industry. In concert with United States title companies, banks, and appraisers, it is simplifying the process of determining property values, which will make it easier for buyers to purchase property and for lenders to make loans.

It is now possible to get United States title insurance on some Mexican properties. While this costs more and takes longer, it is sometimes worth it to American buyers to ensure peace of mind. As your licensed real estate professional. Title searches in Mexico verify the owner and search for liens, encumbrances, and anything else that could affect the title. After the search is completed, our legal team prepares its legal opinion of status of title, which will include owner of record, easements, liens, restrictions, and anything else pertinent to the property ownership. The closing of the transaction is done in the presence of the notario, and funds disbursed through escrow.


Financing has been available, but many Americans have financed their vacation homes by taking out home equity loans on their property in the United States, thus enabling them to pay cash in Mexico. Recently several American lending companies have made it possible for buyers of Mexican properties to finance their purchases. One key is the Title Guaranty Deed, which has a foreclosure provision similar to the American Deed of Trust. Lenders can now foreclose within 90 days and get their security back. Another key is title insurance, and this concept too is becoming more widely known in Mexico. Since it protects buyers and sellers alike, it is sure to be used increasingly in the future.


All of these developments and more are making it easier for more Americans to buy property in Puerto Penasco, but they must never forget that they are obligated to follow the laws of their host country, Mexico. Knowing what to expect and what pitfalls to avoid should make it more comfortable for them. Knowing American practices should make it clearer to Mexicans what to expect from Americans and why they act the peculiar way they do.

Our focus is on organization and protection of the interests of our clients at all times. We adhere to the strictest of ethical guidelines and always place the interests of our clients above all. We seek to attract and retain the highest quality sales associates in the market area in order to provide high quality client services. Please let us know how we can help you and your investment partners here in "Rocky Point" Puerto Penasco, SonoraMexico.