Escrow Process in Mexico

When foreigners, primarily Americans and Canadians, began purchasing properties under the new regulations that allowed for actual ownership after 1975, the concept of escrow was largely unfamiliar. Mexican law does not provide for escrows, which involve a neutral party holding funds for both the buyer and seller during a transaction. However, sophisticated buyers and sellers recognized the need for the security that escrow services offer for their mutual protection.

In response, title companies operating in our state stepped in to provide escrow services. In nearly all cases, our transactions involve an escrow company—specifically, we work with AMX Title, based in Texas—acting as the neutral party. These escrows are structured as “split” transactions, meaning that funds are held and controlled in a U.S. bank, while the deed and other necessary documents are prepared and executed in accordance with Mexican law, typically before a Mexican notary.

The common practice is for the parties to sign the title transfer documents at the notary’s office. Simultaneously, they complete a disbursement order, which is then emailed to the escrow company, specifying the recipients and amounts for the fund transfers.

Please refer to our Notario link for further details , or contact us.