Q & A

1. Can I really own property in Mexico (or is it a 99-year lease)?

Yes, you can legally own property in Mexico. Laws differ based on where in Mexico you purchase. In Puerto Peñasco, you need to hold title via a financial instrument called a fideicomiso, or bank trust. This is the method that Mexico provides to ensure that foreign investors have a way to legally hold title. It adds to the closing costs, but since the bank trust system was created, no one using it has ever lost their property except for issues like non-payment of taxes.

2. How much are closing costs?

Closing costs are higher than in the USA. The general estimate is around 2.5% of the purchase price + $8,000–$10,000 USD for properties held in a bank trust. Costs are lower for properties already in a trust under an American LLC or when transferring title to a Mexican national.

3. Can I get notified of new listings?

Yes. RockyPointBest.com has a full MLS search and automatic listing alerts. You can sign up to receive emails the moment a new property that matches your criteria becomes available.

4. How does financing work?

Bank financing is difficult to obtain in most cases. Almost all properties are bought with cash or through seller/developer financing. If you have equity in a U.S. property, you might use a HELOC to purchase here.

Seller financing terms vary widely. Typically, sellers ask for 40–50% down, amortize over 10–20 years, and include a 2–5 year balloon payment. Interest is usually 6–8%.

Developers normally require 30–50% down and offer 15–20 year loans with no balloon. Interest is usually 7–10%, depending on the down payment.

5. What are the additional ongoing yearly or monthly fees?

Common ongoing expenses include:

• Property taxes: Much lower than in the USA, often under $1000/year.
• Bank trust fees: Typically $450–$600/year depending on the bank.
• HOA fees: Vary by resort or neighborhood and usually cover maintenance, security, and common areas.