Oftentimes I hear things like, “Oh, you don’t need an attorney to handle due diligence nor closing, trust me, I’ve got your back, by the way, sign this purchase agreement and I also need that 10% deposit (none/refundable)”.

Purchasing property means so much more than just the buying process, it involves many steps, due diligence in my case, must include, zoning laws, see, many buy property and “feel” that they can do just about anything on their land, well no sir, you cannot, you must comply with zoning laws, among other things, the Federal Maritime Law, the National Law of Public Lands, etc.

It is necessary to have an understanding of the legal framework (laws, standards, regulations, and codes) that have an impact on the due diligence process as well as in the structuring of a transaction, with or without a real estate trust (fideicomiso).

There are other laws that have an impact on real estate transactions, some of which vary from State to State but I will just mention the following:

  1. Mexican Constitution.
  2. Foreign Investment Law.
  3. Federal Public Administration Law.
  4. Federal Money Anti-Laundering Law.
  5. Law on the Prevention and Identification of Operations with Illicit Resources.
  6. Federal Maritime Zone Law, and its Regulations.
  7. Agrarian Law.
  8. Income Tax Law and its Regulations.
  9. Federal Tax Code.
  10. Immigration Law, and its Regulations.
  11. Notarial Law.
  12. Civil Code.
  13. Law that Regulates the Public Register of Property and Commerce.
  14. Municipal Public Administration Regulations.
  15. General Mercantile Law.
  16. Public Lands Law.
  17. State Urban Development Laws.