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Escrow Services

As an investor in Mexican real estate, it is vital to consider how your partial payment or deposit will be held.  Escrow services provide a neutral third party which holds the funds in compliance with both parties, and neither party may access the money until all obligations of both parties are satisfied.


Neither Mexican lawyers nor real estate agents are certified by a government authority, and they can not legally hold funds “in trust.” Mexico does not have the escrow services which are available in Canada or the US. In Mexico, funds will be held in the realtor, developer or lawyer’s bank account, the account is uninsured and susceptible to seizure or liens. Although the broker or lawyer will hold your funds with good intention, their creditors and tax authorities have access to these accounts. The accounts are not protected as they are in the rest of North America.


To secure your deposit on your Mexican real estate purchase, you must use an escrow service which is insured and held in a Canadian or American bank in a segregated account. MexLaw is a trustworthy law firm authorized to provide escrow services in Mexico.

The benefits of MexLaw’s escrow service include:

Separately administered escrow accounts

The funds are held in a Canadian bank account

The escrow account is protected by professional liability insurance for $1,000,000 per account

The escrow service includes an arbitration process to resolve any disagreements in the transaction

Protection against fraud

Professional escrow services from MexLaw are available for a variety of situations in all areas of transactions between companies and individuals:

Mexican real estate transactions

Mexican property rental

Line of credit

International trade

Vacation rentals

Payment of fees

Administration of Trust accounts in Mexico


When purchasing pre-construction Mexican real estate from the developer, it is not uncommon or illegal for the developer to use your deposit to finance the project. The buyer should insist on a fully insured escrow service, which will receive the funds “ in trust” in a segregated account held in a Canadian or American bank.


Protects the builder as well as the buyer/owner during construction or renovations. The funds are held in escrow and will be released as the construction progresses. The escrow helps the builder stay on budget, complete all conditions and ensure that expenses for the building are paid on time and in full. Funds held in escrow protects the owner by guaranteeing a construction company does not leave town with their money.


Beware of closing companies who claim that they can receive and hold the funds in their escrow account because one of their members is an American realtor and therefore the money will be deposited into their trust account and held until the closing. They claim your funds will be protected by the realtor’s board of which they are a member. This claim is not accurate.  


The realtor’s board in each US state will only permit funds to be deposited in trust for transactions taking place in the state of which the realtor is an active member – representing the buyer of the seller.


Foreigners investing in Mexican real estate are advised not to use closing company trust accounts.


At MexLaw we provide fully insured escrow services by receiving the funds “in trust” in a segregated account held in a Canadian bank. These funds are insured by our professional organization for $1,000,000 per transaction.

You will only have to provide us with the required documents – leave the rest to us!