Cozumel Real Estate FAQ: Everything You Need To Know Before Buying Property

A Notary Public (Notario Público) plays one of the most important roles in any real estate transaction in Mexico. Unlike a notary in many other countries, a Mexican Notary Public is a highly qualified attorney appointed by the state government to oversee the legal validity of real estate transactions and other important legal acts.

One of the most important things to understand is that the Notary Public is completely independent. The notary does not represent the buyer, the seller, or the real estate agency. Instead, the notary acts as a neutral public official whose responsibility is to ensure that the transaction complies with Mexican law and that the rights and obligations of all parties involved are properly protected.

During the closing process, the Notary Public is responsible for:

• Verifying the legal ownership and title of the property.

• Confirming that the required legal documentation is complete.

• Preparing and formalizing the public deed (Escritura Pública).

• Calculating and collecting the applicable taxes, duties, and government fees.

• Registering the deed with the Public Registry of Property.

• Ensuring the transaction complies with all applicable Mexican laws and regulations.

In most real estate transactions, the buyer chooses the Notary Public. Cozumel is fortunate to have five highly respected Notary Public offices, and at Karen Cozumel Real Estate we have experience working with all of them. We are happy to explain the differences, answer your questions, and work seamlessly with whichever notary you choose.

The Notary Public is one of the key safeguards in the Mexican real estate system, providing legal certainty and transparency for both buyers and sellers throughout the closing process.

Most real estate transactions in Cozumel close within approximately 80 to 100 business days after the purchase agreement has been signed and all required documentation has been received.

The exact timeline depends on several factors, including:

• Whether a new Mexican bank trust (fideicomiso) needs to be established or an existing trust can be transferred.

• The processing times of the trustee bank.

• The notary's workload.

• Government processing times and public holidays.

• Whether all buyer and seller documents are submitted promptly.

While the process may take longer than in some other countries, this is completely normal for real estate transactions in Mexico. Throughout the process, our team keeps you informed every step of the way and works closely with the notary, trustee bank, and all parties involved to help ensure a smooth closing.

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Yes.
Foreigners can legally own property in Cozumel.

Because Cozumel is located within Mexico's Restricted Zone (within 50 km of the coastline), foreign buyers typically acquire residential property through a Mexican bank trust, known as a fideicomiso. This trust gives you the right to use, enjoy, sell, rent, remodel, inherit, or transfer the property while the bank acts solely as the trustee, as required by Mexican law.

In some cases, particularly for certain commercial purposes, foreign investors may also acquire property through a Mexican corporation, depending on how the property will be used.

The current legal framework, established through reforms to Mexico's Foreign Investment Law, has made it possible for international buyers to invest in coastal real estate with confidence.
Today, thousands of foreigners own homes, condominiums, and investment properties throughout Cozumel using these well-established legal structures.

A Mexican bank trust (fideicomiso) is the legal mechanism that allows foreigners to own residential property in Mexico's Restricted Zone, including Cozumel. Although the bank is the legal trustee as required by Mexican law, you are the beneficiary of the trust and retain virtually all the rights of an owner.

As the beneficiary, you can:

• Live in the property

• Sell it at any time

• Rent it out

• Remodel or improve it

• Leave it to your heirs by naming substitute beneficiaries

• Transfer or assign your rights

A fideicomiso is not a land lease.
You are purchasing the property, and the trust simply provides the legal structure required for foreign ownership in coastal areas of Mexico.

If the property is already held in a fideicomiso, you may be able to assume the existing trust or establish a new one, depending on the circumstances of the transaction. Your real estate agent, notary, and the trustee bank will guide you through the process.

Closing costs for buyers in Mexico typically range around 7% of the purchase price. This is a conservative estimate that we recommend using when planning your budget.

The exact amount varies from one transaction to another because some costs are calculated as a percentage of the purchase price, while others are fixed government or administrative fees. Your final closing costs are calculated by the Notary Public and the notary's accounting department, based on the specific details of your transaction.

Closing costs may include:

• Notary Public fees

• Property acquisition tax

• Public Registry fees

• Government certificates and permits

• Bank trust (fideicomiso) fees, if applicable

• Other legal and administrative expenses related to the closing

Every property purchase is unique, so the final figures can vary depending on the property's value, whether a new fideicomiso is established or an existing one is transferred, and other transaction-specific factors.

Before you make an offer, we're happy to provide you with a realistic estimate based on your planned purchase, so you'll have a clear understanding of the costs involved and won't encounter any surprises during closing.

In a typical real estate transaction in Mexico, the buyer is responsible for paying the closing costs associated with acquiring the property. These costs generally include:

• Property acquisition tax

• Notary Public fees and expenses

• Public Registry fees

• Government permits and certificates

• Bank trust (fideicomiso) fees, if applicable

• Other legal and administrative costs related to the transfer of ownership

The seller is generally responsible for:

• Any applicable Capital Gains Tax or Income Tax, as determined under Mexican tax law

• The real estate broker's commission, as agreed in the listing agreement

While these are the standard practices for most transactions in Mexico, the buyer and seller are free to negotiate different arrangements, which will be clearly stated in the purchase agreement.

Before you submit an offer, our team will explain the expected costs for both parties so you have a clear understanding of the financial responsibilities involved.

The exact documents required for closing depend on the property, the buyer's nationality, and whether the purchase involves a Mexican bank trust (fideicomiso). Throughout the transaction, our team will guide both the buyer and the seller to ensure all required documents are submitted on time.

Documents and information typically required from the buyer

• Valid passport

• Valid Mexican immigration document (Tourist Permit/FMM, Temporary Resident, or Permanent Resident Card)

• Tax information, if required

• Information required to establish the Mexican bank trust (fideicomiso), if applicable

• The full legal names and personal information of the substitute beneficiaries to be named in the fideicomiso

• Proof of funds and payment instructions

• Any additional documents requested by the Notary Public or trustee bank

If you're purchasing through a Mexican bank trust (fideicomiso), you'll be asked to designate one or more substitute beneficiaries. This allows the rights to the trust to pass more smoothly to your chosen beneficiaries in the future and is a standard part of the trust setup process.

Documents typically required from the seller

• Original property deed (Escritura Pública)

• Valid government-issued identification

• RFC (Mexican Tax ID), when applicable

• CURP, when applicable

• Recent property tax receipts (Predial)

• Current utility bills, if requested

• Certificate showing no outstanding HOA fees, if applicable

• Documentation related to the existing fideicomiso, if applicable

• Any other documents required by the Notary Public

Documents prepared by the Notary Public and trustee bank

The Notary Public and, when applicable, the trustee bank will obtain and prepare the legal documentation required to complete the transaction. This may include:

• Title verification

• Certificates confirming the legal status of the property

• Tax calculations

• Preparation of the Public Deed (Escritura Pública)

• Registration of the deed with the Public Registry of Property

• Establishment or transfer of the fideicomiso, when applicable

Every transaction is unique, and additional documentation may occasionally be required depending on the property or the parties involved. Our team works closely with the Notary Public, the trustee bank, the buyer, and the seller to coordinate every step of the closing process, making your transaction as smooth and stress-free as possible.

A fideicomiso is a Mexican bank trust that allows foreigners to legally purchase and own residential property within Mexico's Restricted Zone, including Cozumel and other coastal areas.

Although Mexican law requires a bank to serve as the trustee, you remain the beneficiary of the trust and enjoy virtually all the rights of an owner. You can:

• Live in the property

• Sell it at any time

• Rent it out

• Remodel or improve it

• Leave it to your heirs

• Transfer your ownership rights

A fideicomiso is not a land lease. You are purchasing the property, and the trust simply provides the legal structure required for foreign ownership in Mexico's Restricted Zone, which extends 50 kilometers (31 miles) from the coastline and 100 kilometers (62 miles) from international borders.

How long does a fideicomiso last?

A fideicomiso is established for an initial term of 50 years and can be renewed for additional 50-year periods indefinitely. As long as the trust is renewed, foreign ownership can continue without interruption.

Who is involved in a fideicomiso?

A standard fideicomiso involves three parties:

• The trustee bank (fiduciario), which serves as the legal trustee as required by Mexican law.

• The seller (fideicomitente), who transfers the property into the trust.

• The buyer (fideicomisario), who is the beneficiary of the trust and enjoys the rights and responsibilities associated with ownership.

What are substitute beneficiaries?

When your fideicomiso is established, you'll be asked to name one or more substitute beneficiaries. These are the people who will receive the rights to the trust in the event of your death, helping to simplify the transfer process for your heirs.

Your substitute beneficiaries can be changed at any time by submitting a request to your trustee bank and paying the applicable administrative fee. This allows you to update your trust as your family or estate planning needs change.

A fideicomiso has been the standard legal structure for foreign ownership of residential property in Mexico for decades and provides a secure, well-established way for international buyers to invest in real estate with confidence.

We highly recommend that you be present in Cozumel for closing whenever possible.

Being here allows you to complete a final walkthrough of the property before ownership is transferred, verify that the property has been delivered in the agreed-upon condition, ask any last-minute questions, and celebrate one of the most exciting moments of your purchase with confidence.

However, we also understand that life happens. If you're unable to travel to Mexico for closing, you can authorize a trusted person to sign the closing documents on your behalf through a Power of Attorney (POA).

Our team will coordinate with the Notary Public to prepare the required Power of Attorney. The document must be signed before a notary in your home country and, in most cases, must also receive an Apostille (or other required legalization, depending on your country) so it can be legally recognized in Mexico.

Once the original authenticated Power of Attorney has been received by the Notary Public, your designated representative will be authorized to sign the closing documents on your behalf.

Because all legal documents are prepared according to the method of closing, it's important to decide as early as possible whether you will attend in person or use a Power of Attorney. Changing this decision late in the process may require the Notary Public to prepare new documentation, which can delay the closing.

At Karen Cozumel Real Estate, we'll guide you through every step of the process and work closely with the Notary Public to ensure your closing is completed as smoothly as possible—whether you're signing in person or through a legal representative.