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Canadian or American notary public is a public officer who is licensed to serve the public in non-contentious affairs and whose principal duties are to witness and authenticate certain documents, also known as notarization. A Notary may take testimony, affidavits, administer oaths, deal with matters concerning estates and perform other official acts depending on the jurisdiction. The term of notary public refers to common-law notaries.

The Difference between a Notary Public and a Notario Publico in Mexico is that the Notary in Mexico is an experienced lawyer who has been selected and appointed by the Mexican state after practicing law, completing a rigorous application process, passing a stringent exam and also meeting all qualifications set by the government. A Notario designation carries a great deal of responsibility as all real estate purchases must be registered with a Notario; they are legally responsible to ensure the deed title is clear and recorded at the Public Registry.

They provide security for original records and documents and are responsible for filing the documents with the Public Registry of Property. A Notario can be held liable in both civil and criminal terms.  

If a Notario Publico is required to finalize my real estate deal, do I still need to have a Lawyer? The answer is yes!

If you are buying Real Estate in any country you will hire a lawyer to finalize the deal; it is also a crucial step here in Mexico. When purchasing property in a foreign country you need a professional on your side, someone that knows the rules and regulations.

There have been incidents in Mexico where people have unknowingly purchased property that is encumbered by liens or cannot be owned or titled, using a lawyer that is licensed to practice in Mexico could have saved the buyer a great deal of grief and money.

A local Mexican lawyer can not only protect your investment but also save you time and money. With valuable contacts and resources—such as financial institutions, experienced accountants, and recommendations for trusted Notarios—they provide the support you’ll need.

They are well informed of the market and will work to provide you with the best-priced options.

During the real estate purchase, the Notario Publico will authenticate all the legal documents, transfer of title, calculate the capital gains tax and ratify all Real Estate transactions in Mexico. If a real estate transaction was not recorded in the Public Registry by a Notario is not valid.

Although a Notario is a lawyer they will not function as your lawyer, their job in this situation is to be neutral, as the Notario is working for the buyer, the seller and the government, we recommend also using a lawyer to represent your interests.

The lawyer will also ensure there is no human error and that your property title is properly registered, verifying taxes and utilities have been paid in full. Be sure to hire a lawyer who will provide a Title Guaranty verifying the title is free and clear.

To ensure your real estate transactions in Mexico proceed smoothly, it’s essential to have the support of an expert lawyer and a trusted Notario. At MexLaw, our firm is here to guide you every step of the way, protecting your interests with the experience and knowledge you need. Trust MexLaw for your investments in Mexico — contact us today.

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What You Need to Know as a Foreigner with a Child in Mexico

If you are a foreigner with a child in Mexico, it is important to be aware of the child support laws and the amendment that took effect on April 16, 2016. From that date forward, anyone behind on their child support payments will be stopped by immigration when attempting to leave Mexico.

With the increasing support of technology and better tracking of debt owed to custodial parents, it will continue to become more difficult for parents that do not make their child support payments to avoid them. More and more children are born into dual nationality families, and the enforcement is increasing to include both countries to ensure children are financially supported.

Obligations Regardless of Residency

Regardless which country you live in or where your child lives, you are obligated to pay child support. Ignoring your obligations will lead to legal problems and travel interruptions. Whether child support payments are late due to lack of communication, job changes or health issues, still require prompt attention to avoid complications.

Taking responsibility for your child support payments not only fulfills your legal duty but also secures a brighter future for your child. If you’re struggling to meet these obligations, our team can work with you to find sustainable solutions that prioritize your child’s well-being. Contact us to explore your options and make a meaningful impact on your child’s life.

Mexican Immigration Law: Article 48

Mexico´s amendment to article 48 of the Federal Immigration Law was created to help enforce the collection of overdue child support. If you are a foreigner or a Mexican National who is two months overdue on your child support payments and there is a court order regarding the child support filed, this new law will affect you.

International Trends in Child Support Enforcement

Mexican lawmakers are following the trend of the United States, which does not allow citizens who are in arrears of child support to renew their passport and have even confiscated passports, prohibiting them to leave the country until their debt is paid. Canada has a similar penalty, your passport will be suspended and possibly cancelled along with certain federal marine and aviation licences if you are in arrears of child support payments.

Get the Support You and Your Family Deserve

If you’re a custodial parent in Mexico struggling to secure the child support owed to your child, don’t let unpaid obligations hold your family back. Contact our legal team today to learn about your options and protect your child’s future.

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Is it safe for a foreigner to purchase land in Mexico?

Property that lies within 50 kilometers (31 miles) of the coastline or within 100 kilometers (62 miles) the borders of Mexico is in what is considered to be the Mexican Restricted Zone. In the past 30 years Mexican laws have changed and are more accommodating to foreigners, including citizens from the United States and all other countries, allowing them to buy, indirectly, the rights to hold and develop or make improvements, to occupy, sell or rent the property.

How can I buy real estate within a Mexican Restricted zone if I am a foreigner?

Legal ownership is possible by using one of two methods which is generally determined by the intended use of the land.

For residential real estate, a bank trust, known in Spanish as a fideicomiso, is the most common method. While the bank has technical “ownership”, for a 50 year term, it has no rights to the property, and is mandated that any dealings with the property are to be solely at the instruction by and for the benefit of the beneficiary which may be an individual or corporation. The fideicomiso allows a buyer to avoid inheritance taxes and to put the property in a will, as well as the obvious rights of real estate ownership including building or developing the property or selling the property. Foreigners are required to obtain a permit to own the land, as is the case with ‘direct deeds’, from the Secretary of the State, which is essentially an endorsement from the Mexican government of ownership of the property. As such, a fideicomiso affords foreigners the same rights and responsibilities full and direct ownership gives. Upon the sale of the property the buyer can assume the current fideicomiso or can take out another one.

For commercial real estate, a foreigner will generally form a Mexican corporation, also known as a Sociedad Anonima (SA) that buys the property, as the law permits a foreigner 100% ownership of a corporation.

How do I create a Mexican Corporation Sociedad Anonima (SA)?

Once you obtain a permit from The Department of Exterior Relations, whereby you register the name of the Mexican corporation, you then create the articles of incorporation. This requires a “Notario” who is a keeper of the public record appointed by the state, licensed as an attorney who passed the Notario exam and is willing to forgo litigation.

After the articles of incorporation are recorded in the public record, next is the process to obtain necessary permits Tax ID (RFC), any others.

 How can I confirm that a seller has legal title to a property?

A buyer should request a copy of the lien certificate or “certificado de libertad de gravamen” which will indicate the owner of record, including the surface area and classification of the type of property, the legal description and if there are any encumbrances filed against the property. A title search of the property should be performed and a copy of the title to the real estate should be requested of the seller.

In Mexican transactions it is the responsibility of the Notario Publico to perform the title search but the Notary generally examines the current deed and current lien certificate. Accordingly, it may be prudent to hire a Mexican attorney for a legal opinion on the status of title.

What is the role of the Public Registry of Property?

Public instruments in Mexico, such as deeds, can be researched at the local Public Registry of Property which is open to the public and exist in most cities and towns in Mexico.

It is a government office where documents are registered allowing third parties to research land titles and liens on titles. Any Public Instrument is required to be finalized and signed by a Notario Publico. Public Instruments usually identify the property; include the entities involved in the transaction as well as the Notario, seller, buyer, and the bank if there is a fideicomiso.

 Who is involved in real estate transactions in Mexico?

Typically, there are four entities involved when consummating a real estate transaction in the restricted zone: The real estate agent, the attorney representing the buyer, the seller and the Notary Public.

It is advisable to hire a Mexican attorney of your own, as opposed to that of the seller, to perform title searches, write contracts and review the conditions and terms of a sale. The attorney should also be able to provide a “cédula profesional”, a document that is a registered license to practice law in Mexico and will include a signature and photograph of the attorney.

What is the role of Public Notaries (Notarios Publicos)?

Real estate transactions and the legal conveyance of any type of property in Mexico involve the participation of a Notario Publico.

In standard transactions, the Notarios prepare deeds in accordance with the purchase-sale agreement. The buyer and seller get together with the Notario to formalize the transfer of property and authorize the signatures upon execution of the deed. Notario’s record the deed with the public registry of property where the property is located after the property has been transferred. A Notario’s duties before the closing include verification of title, searching public records for status of the title and for liens against the property and to examine the seller’s documents to ensure accuracy and legitimacy.

They are also responsible to collect property taxes and government transfer taxes.

How much should I expect closing costs to be?

Common practice in Mexico is that the seller pays capital gains tax and the real estate broker’s commission. The buyer is responsible for paying the transfer or acquisition tax and all other closing costs including the Notario’s fees.

How do I start the process of buying real estate in Mexico?

The process of buying real estate varies from case to case.
Typically you will find a property you want to purchase and will verbally agree a price. The initial offer to purchase detail the costs, inclusions and exclusions, and any deadlines. A deposit is usually paid by the buyer and any penalties for cancellation are determined.

If the property is inside the Mexican restricted zone, you will need to set up a bank trust / fideicomiso or form a Mexican corporation.

If you are buying a condo or direct from a developer in a residential development it is important to have the Notario Publico ensure the developer’s permits are in order.
You will obtain a copy of the Land / Property Deed from the seller, which will be evaluated and verified by the Notario Publico.

You will need to provide official documents to the Notario Publico that can include a photo ID such as a passport, birth certificates, marriage certificates, and your tourist or other visa to verify that you are in Mexico legally.

The Notario Publico will require the seller to produce documents, including the original property deed, current tax records for the property, paid public utility bills as well as details of land-service fees with zero balance due.

Payment of any capital gains taxes are made at the time when the deed is signed and is done at the Notario Publico’s office.

The Notario Publico’s fees are paid at this time in addition to any other taxes associated with the purchase of the land.

What kind of contracts and agreements are involved in a Mexican real estate transaction?

In Mexico, real estate transactions usually have two contracts. First is an offer to purchase and a promissory agreement. These are preliminary agreements containing the basic transaction information, but not the document in which the property title is transferred to the buyer. The second contract is the agreement to be handled by the Notario which transfers the title to the buyer. This may come in different forms.

The Civil Code defines an agreement as an accord between two or more persons to create, transfer, change or terminate obligations. The buyer’s attorney should write the promissory agreement, after a written offer has been accepted, because this is the most important document in the process determining the terms and conditions of the transaction.

Considering purchasing property in Mexico? Our legal firm specializes in real estate transactions for foreign buyers, offering comprehensive guidance to ensure a secure and compliant process. If you have further questions or are ready to proceed, contact us today. We provide expert legal counsel to help you navigate every aspect of your investment with confidence and peace of mind.

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Doing business in Mexico may be just what your company needs to prosper, with lower wages for skilled workers and lower transportation costs since Mexico is situated closer to the US and Canada, than, China or India for example. Location also ensures faster production turnaround time, not to mention ease of communication, and similar time zones.

Since, Mexico is a part of The North American Free Trade Agreement NAFTA, between Mexico, Canada and the United States there are many benefits to doing business in Mexico. NAFTA eliminates tariffs between the countries and has built in agreements and legal processes, with international rights for business investors.

Foreigners can own 100% of a Mexican corporation and open their business in Mexico. Mexico’s legal system and tax laws for businesses do not discriminate between foreigner-owned businesses or those owned by Mexican nationals. However, it’s important to note that in certain industries, Mexican law requires a minimum percentage of national investment. This means that while foreign ownership is generally unrestricted, there are specific sectors where the law mandates a certain level of Mexican participation.

Owning a business in Mexico can be a lucrative initiative, but make sure you have a Mexican law firm to represent you and your company, they will help you setup your business in Mexico, a law firm like MexLaw can provide important guidance through, creating a corporation, advising you on Mexican labor law, Mexico’s tax laws, and all red tape that goes along with doing business in Mexico.

Anyone who has begun the process of opening a business in Mexico can not stress enough the importance of using a lawyer, you will need to deal with all business aspects, zoning and building permits, taxes, environmental regulations, and even your own immigration status.

Business entity options in Mexico are similar to those in the rest of North America, including Public Limited Companies or Corporations (Sociedad Anónima (S.A.)). These entities must have fixed capital, but there is also the option of variable capital. This entity can have one or more board members and an unlimited number of shareholders. Only the Investment Promotion Public Limited Company (Sociedad Anónima Promotora de Inversión) is required to have at least two board members.

Limited Liability Company (Sociedad de Responsabilidad Limitadada (S.de R.L.) also, have fixed capital but there is the option of variable capital. This entity must have at least 2 partners, but no more than 50.

Sole Trader (Persona Física con actividad empresarial) refers to an individual conducting business under their own name for business and tax purposes.

Professional Service entities (Sociedad Civil (S.C.)) are designed for consultants, translators, lawyers, or accountants. No minimum capital is required. It is primarily for a group of professionals in a field or service that is not predominantly economically driven.

All these types of companies are required to have an accounting firm to ensure proper management and compliance with legal requirements.

Nonprofit entities (Asociación Civil (A.C.)) include charities, organizations, or Homeowner’s Associations (HOAs), not the administration companies.

The most common entities are corporations and limited liability companies. A professional legal team can help you assess which option is best for your business and which will provide the most operational benefits.

Mexico’s Labor Law

It is important to familiarize yourself with Mexico’s labour laws. Foreigners doing business in Mexico need to be cautious of their hiring practices and the  labour laws of Mexico. Mexico has strict labour laws in place to protect the employees, but a Mexican law firm can help you make sense of the labor laws of Mexico.

As an employer, it is in your best interest to hire a Mexican law firm like MexLaw to understand your rights and obligations, develop employee contracts, and adopt best practices for hiring staff. You’ll receive guidance on legal expectations to ensure a happy, productive workforce and avoid issues with the labor board.

All conditions and expectations must be documented in an employment contract between the worker and the employer, with the aim of ensuring the best interests of both parties.

Labor laws can change with each state and update without notice.

As in Canada and the US, there are many labor laws involving, child labor, discrimination, harassment, maternity leave, profit sharing, overtime, yearly wage negotiation, vacation days, and union regulations if applicable.

MEXLAW can assist you in managing employee hiring, helping your company resolve labor disputes and guiding you through Mexican labor laws and proper employee administration. Additionally, our sister company Mextax can provide payroll services to ensure your company complies with all regulations and avoids penalties.

It’s also crucial to familiarize yourself with Mexico’s tax laws, it is important that you have a reliable accountant in Mexico to help you deal with the different taxes and make sure you take advantage of tax breaks and deductibles.

Depending on the business you open, you may be required to pay corporate tax, tax on dividends, asset tax, value added tax, and payroll taxes. Mextax can provide accounting services for your business to help you get the most from your investment.

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To apply for a residency in Mexico, either temporary or permanent, you need to request an appointment at a Mexican consulate. To do so, you are not necessarily required to visit the consulate located in your hometown for this; you may apply online for any Mexican consulate around the world.

In a few consulates, making an appointment is not required, some of them will accept walk-in procedures or appointment requests. However, in the majority of Mexican consulates, there are only three ways to request an appointment, and the appointment process is decided by the consulates individually. To know what option is available at the consulate of your choice, you can visit the Mexican consulate´s individual web page. The options include email, phone call, or online through MiConsulado (also called ConsulMex).

To schedule an appointment through MiConsulado, click on the following link:

https://citas.sre.gob.mx/

On the MiConsulado website, create an account, fill in the form with the required information, and set up a password. Once the registration is completed, log in to your account, select the language, country, zip code, and schedule an appointment for the date you prefer among the consulate’s availability. To get an appointment through MiConsulado, you will also have to provide your complete name, date of birth, passport number, email address, phone number, and information of an emergency contact.

Note that in some consulates and during busy periods of the year, you will have to wait until the beginning of the month to see the availability for the month, in other cases the consulate will issue new appointment slots every week or a specific day of the month.

Immediately after completing the appointment formulary and choosing the date, you will be able to download the appointment slip and will also receive it through a confirmation by email; print it and bring this appointment slip to your appointment along with the other required documentation.

Example: https://consulmex.sre.gob.mx/shanghai/images/pdf/MiConsulado_2206_ENG.pdf

Requirements may vary depending on the consulate you are dealing with. For instance, in certain Mexican consulates, applicants may only qualify for temporary residency if they are investors in Mexico, and financial records may not be accepted for this purpose, unlike consulates in Canada and the US.

In all Mexican consulates, you are required to bring your valid passport with at least a six months validity left before the expiration date, the original, and one photocopy. A passport-size photograph: white background, clear view of the face (glasses or other accessories are NOT ALLOWED, filters or image alterations are NOT ALLOWED.), a completed and both sided printed visa application form, which may be downloaded online from the consulate´s website, and $53 USD for the visa application fee, typically required in cash or credit/debit card (we recommend you bring both methods of payment).

For financial solvency, in general, you are required to supply documents proving economic solvency such as:

• Original (notarized or stamped by the financial institution in many cases) and one photocopy of investments or savings account statements from the previous consecutive 12 (twelve) months.

or

If by income: Bank statements for the last 6 (six) months with a monthly income per person and must provide the corresponding document of the following:

• Original document proving employment or pension (employment letter; labor contract; payroll; pension voucher, etc.). If the applicant is retired: Must provide proof of retirement (an OFFICIAL DOCUMENT THAT STATES RETIREMENT).
• Self-employed persons must provide proof of commercial or business license.
• Individuals who are self-employed WITHOUT having a registered trade or business must provide proof of income with one of the following options: Submit a 1099 form from your client showing how much income you have generated with him/her; pay stubs; proof of direct deposits; rental agreement (if income is from rental property), etc.

All bank statements must be submitted monthly split and with a verification letter from the financial institution or bank.

The consulates require an average monthly balance of a determined sum of funds for the last 12 months or proof of a determined monthly income.

The financial requirements may differ between consulates and may fluctuate with the exchange rate. Generally speaking, to receive temporary residency, you need to prove you have investments or savings account statements of over $74,000 USD from the last 12 (twelve) months, or bank statements or paystubs from the last 6 (six) months. The monthly income must exceed $4,400 USD plus $1,500 USD average for each dependent.

Canadian and US Mexican consulates will accept property ownership in Mexico valued over $9,957,200.00 Mexican pesos or $575,000 USD average or ownership in a Mexican company with $290,000 USD average invested in shares or properties, including real estate property in the company´s name.

For permanent residency, the required financials are $290,000 USD in investments or savings, or $7,400 USD average of salary or pension per month.

Due to constantly changing requirements and false information about residency in Mexico, you may want to speak to professionals. Ensure your procedure is done correctly and efficiently; contact an immigration specialist at Mexlaw.

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The General Assembly must be governed by a public deed that stipulates the organization and administration of the condominium, in addition to designating a person in charge of carrying out these tasks. These are normally carried out in either ordinary or extraordinary assemblies. 

Ordinary assemblies must be held at least once every six months and must discuss topics such as appointing or removing the condominium administrator, establishing the obligations and faculties of the administrator, establishing the moratorium rates for the condominium owners, examining the account statements provided by the administration, reviewing budgets, establishing quotas for maintenance expenses and in general, topics of common interest among the condominium owners. 

In the case of the extraordinary meetings, there is no specific rule regarding frequency, since they attend to the needs of the condominium and can be held as many times as necessary. However, there are issues that, according to the law, must be exclusively debated in these meetings. For example, any modification to the articles of association of the condominium property regime and its regulations, the voluntary extinction of the condominium property regime, or even a lawsuit against a condominium owner in the event that he/she repeatedly fails to comply with his/her obligations and incurs in violations of the articles of association and the Condominium Regulations. 

It is worth mentioning that the meetings of the Assembly, whether ordinary or extraordinary will be held at the condominium property, except in cases of force majeure (an act of nature) or to facilitate the participation of the interested parties. In both cases, the condominium owners may opt for a remote meeting, through the use of any digital platform that facilitates and allows the image of the condominium owner to be projected in real-time under the conditions determined by law. 

Likewise, the announcement for meetings must be duly made in accordance with the law and the condominium regulations, since there are legal requirements that must be met, and which are imposed to ensure that all the condominium owners are aware that a meeting will be held, allowing them the right to participate and vote, otherwise, the meeting would be null and void. 

Finally, at the end of each of the meetings, the meeting must be recorded in a public deed and registered in the Public Registry of Property and Commerce for its legal effects. 

If you would like to know more about the subject or would like personalized legal advice, do not hesitate to contact us. 

Our experience and professionalism have always allowed us to provide world-class service to our clients. 

Contact us today. 

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