Historically, the concept of escrow was largely unfamiliar in Mexico. When foreign buyers—primarily from the U.S. and Canada—began purchasing property under the 1975 ownership regulations, they encountered a legal system that did not traditionally provide for neutral third-party fund management. Under Mexican law, there is no direct equivalent to the “escrow” process common in North American real estate.

However, as the market matured, sophisticated buyers and sellers recognized that escrow services were essential for mutual protection. To bridge this gap, title companies began offering secure escrow solutions to provide the transparency and security required for international transactions.

How Our “Split” Transactions Work

In nearly all our transactions, we utilize a neutral third-party escrow company. We specifically partner with AMX Title, based in Texas, to manage these funds. This process is structured as a “split” transaction, which offers the best of both legal worlds:

• Financial Security: Funds are held and controlled within a U.S. bank account, providing familiar oversight and protection for the buyer’s capital.

• Legal Compliance: The deed and closing documents are prepared, executed, and formalized in Mexico according to national law, overseen by a Mexican Notario Público.

The Closing Process

The typical closing procedure follows a streamlined three-step process:

1. Execution: The buyer and seller meet at the Notary’s office to sign the official title transfer documents.

2. Authorization: Simultaneously, the parties sign a Disbursement Order, which provides formal instructions on how the funds should be distributed.

3. Funding: This order is emailed to the escrow company, which then releases the funds to the designated recipients (such as the seller, agents, or tax authorities) as specified.