These are the questions foreign clients ask us most often when they buy, rent, renovate, sign contracts or plan their estate in Mérida and Mexico City. The answers are general and written in plain English. Every case has its own facts, so use this page as a starting point and talk to a lawyer before you sign or pay anything.

Buying property

Can foreigners own property in Mérida?

Yes. Foreigners can acquire real estate in Mexico, but how they hold it depends on location. The Constitution sets a restricted zone along the coasts and borders where foreigners cannot hold direct title to residential property. Mérida is about 35 km from the coast, so it falls inside that zone, and foreigners generally buy through a fideicomiso, a bank trust. Outside the zone, a foreigner can usually take title directly after signing the permit agreement with the Ministry of Foreign Affairs. Our guide on buying property in Mérida as a foreigner explains the process step by step.

What is a fideicomiso and how does it work?

A fideicomiso is a trust agreement with a Mexican bank. The bank holds legal title to the property and you, as beneficiary, keep every practical right of ownership: you can live in it, rent it, renovate it, sell it or leave it to your heirs. You can also name substitute beneficiaries, which makes inheritance much simpler. The trust is set up with a permit from the Ministry of Foreign Affairs and is formalized before a notary at closing. The bank charges a setup fee and an annual fee, so compare offers before choosing one. See our real estate services for more.

How do I check the title and liens before buying?

Start with the deed and the records at the Public Registry of Property. A certificate of no liens (certificado de libertad de gravámenes) shows whether there are mortgages, attachments or other encumbrances. You should also confirm that property tax and water bills are paid, that the seller is the registered owner or has proper authority, and that the land use and cadastral records match what you are buying. If the seller is married, the spouse may need to consent. A lawyer reviews this file before you pay any deposit, not after.

Can I buy ejido land?

Be very careful. Ejido land is communal agrarian property, and it cannot be sold like private property while it remains under the ejido regime. A parcel must first go through a legal process to obtain full ownership (dominio pleno), be removed from the agrarian registry and be registered at the Public Registry of Property. Many properties around Mérida were once ejido land, and some sellers offer parcels whose paperwork is incomplete. If the title traces back to an ejido, have a lawyer confirm the full chain of documents before you commit. Our real estate team handles this review.

What does a notario público do?

In Mexico a notario público is not the same as a notary in the United States or Canada. The notary is a lawyer appointed by the state who drafts and certifies the deed, verifies the identity and capacity of the parties, checks the certificates of the property, calculates and withholds the transfer taxes and registers the deed at the Public Registry. The notary must act impartially, so the notary does not represent you or negotiate on your behalf. That is the role of your own lawyer.

What are the closing costs in Mérida?

The main cost is the property acquisition tax (ISAI). In Mérida it is progressive and starts at 2.5% of the property value. On top of that you pay the notary fees, the appraisal, certificates, registration fees and, if you buy through a fideicomiso, the bank trust and permit costs. Taken together, total closing costs in Mérida typically run between 4% and 7% of the price. The exact figure depends on the value, the structure of the purchase and the notary, so ask for a written estimate early. Our buyer guide covers the closing in detail.

What is a purchase promise contract?

A contrato de promesa de compraventa is a preliminary agreement in which the buyer and seller commit to sign the final deed later, on agreed terms. It usually sets the price, the deposit, the conditions that must be met, who pays which costs and the date for closing before the notary. It should also say what happens to the deposit if either party backs out. Many problems we see start here: large deposits paid to sellers whose title was never checked. Have the promise reviewed before you sign it and before money changes hands.

Renting

What should a lease in Mexico include?

A lease should identify the landlord and tenant, describe the property, and state the rent, the term, how and when rent is paid, the deposit, who pays maintenance, utilities and condominium fees, and the rules for renewal and early termination. Landlords often ask for a guarantor (fiador) or a rental bond. We recommend a bilingual lease with the Spanish version prevailing, because Mexican courts work in Spanish. If you are the landlord, a well drafted lease makes any later claim much easier. See our civil and commercial litigation page for lease disputes.

How do security deposits work?

The deposit is whatever the lease says it is, so the terms matter. The contract should state the amount, what it covers, and when and how it will be returned once the tenant moves out and the property is handed back in the agreed condition. Both sides should sign an inventory and take dated photos at move in and move out. Unpaid utilities and damage beyond normal wear are the usual deductions. If a deposit is withheld without reason, the tenant can claim it, but clear documents from day one prevent most disputes.

Do I need to register a short-term rental?

In most cases, yes. Short-term rentals through online platforms are regulated, and both Mexico City and Yucatán have registration and tax obligations for hosts, including local lodging taxes and federal income tax. The rules differ by state and municipality and they change often. Condominium regulations may also limit or prohibit short stays, so check them before you buy a unit with that plan in mind. If you hold the property through a fideicomiso, the trust agreement should allow rental use. We can review your situation and point you to the current requirements.

Renovations and contractors

What should I watch for when I renovate or hire a contractor?

First, permits. Construction and remodeling generally need a municipal license, and properties in the historic center of Mérida are subject to additional heritage rules. Second, a written contract that defines the scope of work, the price, the schedule, payments tied to progress, warranties and what happens if the work is late or defective. Avoid paying most of the price up front. Ask how the workers are registered with social security, since owners can face claims. If a contractor abandons the job or fails to deliver, a contract claim may be available.

Contracts and disputes

What can I do if the other party breaches a contract?

Start by gathering the contract, receipts, messages and any proof of what was agreed and what went wrong. A formal written demand is often the next step and sometimes resolves the matter. If it does not, Mexican law generally lets you ask a court either to enforce the contract or to terminate it, and in both cases to claim damages where they can be proven. Depending on the parties and the deal, the case may be civil or commercial, and that changes the procedure. Learn more about our civil and commercial litigation work.

Someone owes me money. How can I collect it?

It depends on what document you hold. A pagaré (promissory note) is an enforceable instrument that supports an executive commercial action, in which the court can order an attachment of assets at the start of the case. Note that the direct action on a pagaré prescribes in three years from its due date (article 165 of the General Law of Negotiable Instruments and Credit Operations). Without a pagaré, a signed contract, invoices, transfers and messages can still support an ordinary claim. Act early, while the debtor still has assets. See our litigation services.

Are there time limits to take legal action?

Yes. Most claims in Mexico are subject to limitation periods, and once they run out you may lose the right to sue, no matter how strong your case is. The periods vary by type of claim and by state. Possession of property also has time effects: in Mexico City, acquisitive prescription generally requires five years of possession in good faith or ten years in bad faith, under the conditions set by law. Appeals and amparo have much shorter terms. If you think you have a claim, get advice promptly rather than waiting.

Family and estates

Should I make a Mexican will?

If you own property or bank accounts in Mexico, a Mexican will is strongly advisable. A foreign will can be valid here, but it usually needs an apostille, an official translation and a court process to be recognized, which adds time and cost for your heirs. A public will signed before a Mexican notary is straightforward and is recorded in official registries. It should be coordinated with your will at home so the two do not contradict each other. If your property is in a fideicomiso, review the substitute beneficiaries too. Visit our family and estate law page.

Can foreigners get divorced in Mexico?

Often, yes. Mexican courts can hear a divorce when the legal requirements of jurisdiction are met, usually tied to residence or domicile in Mexico. Both Mexico City and Yucatán allow divorce without having to prove a specific cause. If you married abroad, the marriage certificate generally needs an apostille and an official translation. Custody, child support and the division of property are decided in the same proceeding or alongside it. If a divorce was granted abroad and you need it to take effect in Mexico, it may have to be recognized by a Mexican court. See our family law services.

How do I inherit property in Mexico?

Mexican property passes through a succession proceeding, either in court or, when the law allows and there is no dispute, before a notary. The heirs prove the death, the relationship and the will, if there is one. The executor (albacea) then lists the assets and debts and the property is transferred to the heirs by deed. Documents issued abroad need an apostille and a translation. If the property is held in a fideicomiso with substitute beneficiaries, the transfer is usually simpler because it is handled through the bank. Our estate team can guide you.

Working with a lawyer

Do I need a lawyer if I already have a notary?

The notary and the lawyer do different jobs. The notary certifies the transaction and must remain impartial. Your lawyer works only for you: reviews the title and the seller, negotiates the promise contract, checks that conditions are met before money is released, coordinates with the bank on a fideicomiso and protects you if something goes wrong. For a foreign buyer who does not know the local system or the language, that independent review is worth having. Learn more about working with a lawyer in Mérida.

Can you help me if I am not in Mexico?

Yes. Much of the work can be done remotely by video call, email and secure document exchange. When someone needs to sign or appear for you, you can grant a power of attorney. If you sign it abroad before a local notary, it must be apostilled and then formalized in Mexico; you can also sign it at a Mexican consulate. The power should be drafted for the specific acts you need, such as buying, selling or appearing in court, and not broader than necessary. See our lawyer in Mérida page for how we work with clients abroad.

Do you speak English, and where are your offices?

Yes. Grupo ASA is a bilingual firm and we work with our clients in English and Spanish, including meetings, emails and explanations of every document before you sign it. Court filings and deeds are in Spanish, as Mexican law requires, but we walk you through them in English. We have offices in Mérida, Yucatán, and in Mexico City, and we handle real estate, contracts, collections, leases, family and estate matters and amparo. You can reach us through the contact form on our Mérida office page.

This page contains general information about Mexican law as of October 2026. It is not legal advice for any specific case, and reading it does not create an attorney-client relationship. Laws, taxes and procedures change and every case depends on its own facts, so consult a lawyer before making decisions.

Free download: our two-page Before You Buy in Mérida legal checklist, ready to print and take to every meeting.