Overseas Retirement Hub

Mexican legal regime of ownership is quite complex. In very general terms you have three types of legal regime: Private Property, Public Property, and Social Property (Ejido Property Regime).

Any Lake in Mexico is considered to be Public Property, and a certain restricted zone will probably be declared over the bounding areas of the lake (beach) by the National Water Commission.

The fact of Ajijic bounds with Lake Chapala could cause that some of the Private Properties may encroach over Public Property (Federal Restricted Zone), nevertheless, it is necessary to review specific documentation for the target property in order to determine its legal regime.

The best advise is that, once you decide on a target property, you should retain the services of a Mexican attorney at law to review the documents for you and assess any possible risk. It is also a good idea to obtain title insurance. Currently two US companies offer this service in Mexico: First American Title Insurance Company (Miami Branch) and Stewart Title Guaranty de Mexico. Even though purchasing a policy from them may seem expensive and sometimes unecessary under Mexican Law, in my experience this kind of policies provide a higher degree of comfort for foreign investors. In addition, and specifically in terms of you concern with Lake Chapala, both title insurance companies will provide as part of their review a survey, which will detect any possible encroachments, setbacks, or restrictions.