The Law Offices of Rafael Solorzano.

27/09/2025

Suggestions for people about to start home hunting in Mexico.

First and foremost, become acquainted with Mexican law, particularly regarding the Restricted Zone (the area within 100 km of international borders or 50 km of the coastline):

1. Understand the "Restricted Zone" and the Fideicomiso
Learn the Rules: Mexican law (specifically Article 27 of the Constitution) prohibits non-Mexicans from having direct title ownership of land in the "Restricted Zone."

The Restricted Zone: This is defined as 100 kilometers (approx. 62 miles) from any international border and 50 kilometers (approx. 31 miles) from the coastline.

Study the Fideicomiso: If you are a foreigner buying property for residential use in the Restricted Zone, you must use a Fideicomiso (pronounced fee-day-ee-coh-mee-so), which is a bank trust.

How it Works: A Mexican bank acts as the trustee, holding the legal title to the property on your behalf. You (the buyer) are the beneficiary and retain all ownership rights: you can use, lease, renovate, sell, and bequeath the property to your heirs.

Duration: The Fideicomiso is established for a period of 50 years and can be renewed indefinitely.

2. Engage Professional Experts Immediately
Do not rely solely on the seller or the seller's agent for legal advice. This is your most critical step.

Hire a Reputable Real Estate Attorney: Secure an independent, qualified Mexican real estate attorney before signing any contracts. They should specialize in foreign transactions and property located in the Restricted Zone. They will:

1. Verify the legal status of the property (due diligence).
Ensure the seller has a clear title and that the property is free of liens, debt, or disputes.

2. Guide you through the Fideicomiso process or any alternative structure (like a Mexican Corporation, often used for commercial purposes).
Your attorney will take care of the negotiations, purchase agreement, escrow agreement, due diligence, closing and titling and will rely on a notary public to ensure the legality and proper registration of the sale.

3. Conduct Thorough Due Diligence
Even with a Fideicomiso, you must verify the property's legal standing:

4. Check the Public Registry: Have your attorney confirm that the property's deed is properly registered in the local Public Registry of Property (RegistroPuˊblicodelaPropiedad).

5. Confirm Zoning and Use: If you plan to build or remodel, confirm the property's zoning classification and any restrictions (e.g., height limits, environmental restrictions, especially near the beach, where the first 20 meters is federal land, known as ZOFEMAT).

6. Verify Tax Status: Ensure all annual property taxes (Predial) and utility bills are current and paid up.

Be Aware of Alternatives and Myths
Mexican Corporation: For certain non-residential properties (e.g., pure commercial rentals), foreigners may be able to hold title through a Mexican corporation, which has its own setup and tax implications. (Discuss this option with me).

Dispelling Myths: Understand that the Fideicomiso is not a "lease." It is a legal trust that grants you all the rights of ownership, and the 50-year term is renewable, providing long-term security.

By focusing on these legal structures and employing independent, qualified Mexican professionals, you can navigate the property purchasing process in the Restricted Zone securely and confidently.

Contact Me for Expert Advice.

Share this guide with friends interested in the adventure of owning property in beautiful Mexico.

Connect with Rafael Solorzano:
Email: [email protected]

San Diego, California: 619-636-3089
Los Cabos, Baja California Sur, Mexico: 624-166-7918
Tijuana, Baja California, Mexico: 664-188-7001

Best regards,

Rafael Solorzano.

27/08/2025

A video discussing fideicomisos and my legal practice.

https://www.facebook.com/share/v/15gPB5urvT/

03/08/2025

I do "For Sale by Owners" (FSBO!
What is For Sale By Owner?

"For sale by owner" (FSBO) indicates that a property is being offered for sale directly by the owner rather than through the services of a real estate agent or broker.

Is a FSBO legal in Mexico? Yes, it is.

Some sellers choose this option to avoid paying the real estate agent a commission on the sale. The commission is usually 6% to 10% of the sale price, split between the seller's agent and the buyer's agent.

The seller must undertake the following tasks:

Determine the asking price by researching neighborhood property values for homes with similar features.

Staging the home for sale and making any necessary repairs before showing the property to potential buyers.

Managing the marketing, (advertising, online listings, brochures, flyers).

Scheduling and hosting showings and appointments.
Negotiating the price and terms of the sale when an offer has been made.

Preparing legal documents such as Offers, sales contracts, and residential property.

Sellers should obtain a recent certificate of no liens, property tax bills, homeowner association covenants and agreements, and the property title.

In FSBO transactions, as in all cases involving a real estate trust, I assist the Seller (the Assignor) with:

Draft the Offer to Purchase.
Draft the Purchase Agreement.
Confirm that the property tax is paid up.
Confirm that Trust fees are current.
The Trust bank fees are paid to assign and transfer the property under trust.
Prepare a letter of instructions to the trust bank on behalf of the trust owner to transfer the property to the Buyer (assignee), pay the trust fees.
Coordinate with a Notary Public from whom I have previously received a confirmation associated with the seller's capital gains tax exemption. (I always make it a point that the Seller must absolutely have the right to choose its own notary public to get the tax exemption on the resulting capital gains tax).
Coordinate payment of capital gains tax (if any).
Obtain a receipt from the HOA.

If the property is a condominium unit, the Seller must provide a full copy of the Condominium License and Regulations.

In FSBO transactions, the Buyer, as in all cases involving a real estate trust, assumes its closer/legal counsel fees, notary fees, trustee fees, registration duties, etc.

Who draws the Offer to Purchase and Purchase Agreement in FSBO’s?

I do, on behalf of the seller.

Benefits of Selling as FSBO

The payment of commissions reduces the seller's profits (so does paying capital gains tax) thus I save the seller a ton of money, otherwise the seller risks paying upwards of 35% on Capital Gains Tax.

Special Considerations

Saving thousands of dollars in commissions can be tempting, but if mismanaged, it can become a nightmare. This is why retaining the services of an experienced real estate trust attorney can be a good investment.

Contact me if you wish to discuss this topic.

Regards,

Rafael Solorzano

[email protected]
Phone:
US 619-636-3089
Los Cabos 624-166-7918
Tijuana 664-188-7001.

01/07/2025

Buying a condo in presale?

Demand a Fair and Transparent Purchase Agreement: Ensure that your contract clearly defines the scope of the project, including detailed descriptions, plans, and specifications. It should specify that the project cannot be materially altered without prior consent.

Include Specific Remedies and Penalties: Your agreement should specify remedies for delays, breaches, or changes in the project, such as penalties, compensation, or the right to cancel the contract.

Obtain Bank or Escrow Guarantees: Use escrow accounts or bank guarantees to secure your deposits and final payments, providing additional protection against developer default.
Conduct Due Diligence: Verify the developer’s track record, reputation, and legal standing with local authorities and other buyers.

Legal Review and Advice: Work with a trusted real estate attorney experienced in Mexican property law to review all documents before signing.

Monitor Project Changes: Stay actively involved and request regular updates. Ensure any modifications are documented and approved formally.

Don't be misled by shady developers.

Rafael Solorzano.

14/06/2025

Important Notice: Discontinuing Taxation and Capital Gains topics.

Dear Readers,

For many years, I have been dedicated to providing weekly guidance on taxation issues related to real estate in Mexico, including updates on capital gains tax exemptions. I am grateful for the trust and engagement from all of you.

There is a high volume of requests for free advice, and that has not generated more business; thus, I have decided to discontinue publicly discussing these specific topics on my blog.

Please be aware that if you require personalized legal or tax advice, I can assist you directly. You can easily contact me to retain my services, ensuring your circumstances are properly addressed.

I appreciate your understanding and continued trust.

Contact me if you have decided to ensure that your property transaction in Mexico is handled professionally and with expert legal oversight.

[email protected]

Phone Numbers:
Los Cabos, Baja California Sur, Mexico: 624-166-7918
San Diego, California: 619-636-3089
Tijuana, Baja California: 664-188-7001.

11/06/2025

Clearance of Title.
Purchase of property.
Pancho Murphy's Law.

I often get pushback from the sellers attorney, closer and listing agent when I draft the Clearance of title clause. I had a recent case where the seller's attorney did not want his client to accept this clause and insisted to assume responsibility for risks dating back to the date when the owner purchased the property and would not indemnify for risks before that time.

When purchasing property in Mexico, especially if there has been recent construction or development, it's crucial that the "clearance of title" clause is comprehensive enough to cover all potential claims, including those from laborers, contractors, and construction crews.
How broad should the clause be?
Full Disclosure and Guarantee: The seller should warrant that the title is free from any liens, encumbrances, or claims, including those arising from unpaid labor or contractor claims related to ongoing or completed construction.
Specific Coverage of Labor and Contractor Claims: The clause should explicitly state that the title is free from any legal or contractual claims stemming from unpaid wages, fees, or services provided by contractors, construction crews, or laborers associated with the property or its improvements.
Seller’s Obligation to Resolve Claims: The seller should be responsible for resolving any such claims at their expense before the closing, ensuring the buyer receives an unencumbered title.
Indemnification: Include a robust indemnity provision where the seller indemnifies the buyer against future claims or liens arising from unpaid labor or contractor disputes.
Sample language example:
"The seller warrants that, as of the date of closing, the title to the Property is free and clear of any liens, encumbrances, or claims, including but not limited to those arising from unpaid wages, services, or materials supplied by contractors, construction crews, or laborers related to the Property or its improvements. The seller shall resolve all such claims prior to closing and shall indemnify the buyer against any future claims or liens arising from said matters."
Additional steps:
Title Search & Due Diligence: Obtain a comprehensive title report from a reputable legal professional, which should include checking for any mechanic’s liens or labor claims.
Legal Advice: Engage a Mexican real estate attorney to review and strengthen the agreement and this clause, particularly considering the complexities of construction-related claims.

I know, many buyers would ask what is the relevance of this, well, I have had people consult me because they purchased property within the past five years, and got served in a labor lawsuit file by members of a construction crew that built the house over fifteen years before, so the now owner lost over a million pesos due to this. Yes, the affected party has recourse against his seller even if this party had no relation to the contractor or crew.

When purchasing property in Mexico Pancho Murphy's Law may cause major problems.

Rafael Solorzano

[email protected]
Phone Numbers:
Los Cabos, Baja California Sur, Mexico: 624-166-7918
San Diego, California: 619-636-3089
Tijuana, Baja California: 664-188-7001.

25/05/2025

Closings Done Right!
Expert Titling & Closing Services in Mexico

Why Choose Me?
Over 40 years of experience in Mexican real estate trusts and title law

Covering any property across Mexico — no jurisdiction limits
Dedicated to protecting your interests, not the seller or developer
What I Offer

Full legal support & trusted title services from start to finish

In-depth property title research & verification to avoid nightmares

Assistance with purchase negotiations & drafting compliant agreements

Guidance to prevent scams and costly mistakes

Expert taxation advice to help you claim exemptions on capital gains tax

Help with fideicomiso (trust) works and legal transfers

Avoid Common Pitfalls
Many buyers face delays, hidden costs, or incomplete legal advice. I help you navigate these issues professionally and ethically, saving you time and money.

My Mission
To educate and empower buyers with clear legal guidance, ensuring a smooth and fair property transaction in Mexico.

Reach Out Today!
Let’s make your property closing a success.

Contact Rafael Solorzano
Email: [email protected]
Phone: 619-636-3089 / 664-188-7001

Call now to connect with business.

19/05/2025

Urgent.

Stamping RFC on utility bills to claim the capital gains tax exemption.

As of today, if you are selling a property and plan to claim the exemption allowed by law on the capital gains tax resulting from the sale of your primary residence, your CFE utility bill must have your RFC (ITIN) stamped, or risk the notary refusing the exemption.

Visit your nearest CFE office and ask them to include the RFC in all future bills.

[email protected]

619-636-3089 (San Diego, California).
624-166-7918 (Los Cabos, Baja California Sur, Mexico).
664-188-7001 (Tijuana, Baja California, Mexico).

Rafael Solorzano.

17/05/2025

A common oversight when purchasing beachfront properties.

Most people I know who own beachfront properties took over a concession that does not belong to them—in fact, in other cases, it was not even in the name of the seller from whom they bought the property—and are happy with just paying an annual fee under someone else's name. This is illegal; the concession must be in the name of the property owner.

Be in the know!

Rafael Solorzano.

13/04/2025