4 Reasons Expats Lose Their Homes in Mexico (And How to Avoid Them)

If you live in Bucerías, you probably noticed the sudden appearance of the “Inmueble Asegurado” signs on homes in your neighborhood. It was a shock and for many, it sparked panic. After all, the idea of the government seizing property sounds pretty darn scary.

The stories of expats losing their homes echo through online forums, Facebook groups, and dinner conversations. But here’s the truth: hundreds of thousands of foreigners own property in Mexico. Americans, Canadians, Europeans—they’ve bought homes, condos, and even land here, and the overwhelming majority of them never face any issues.

Still, the fact remains: real estate deals in Mexico are different. And when things go wrong, they often go wrong in very predictable ways. So this blog is not meant to scare you. It’s here to help you feel more confident. Because when you know what to watch for, you’re far more likely to avoid costly mistakes.

Here are four of the biggest pitfalls we’ve seen—plus real-world stories to show how they play out.

1. Not Understanding the Type of Land You’re Buying

This is a big one. Mexico has several types of land, and not all of them are safe to buy. If you’re buying private property (“propiedad privada”) with a clean title and it’s registered in the Public Registry, you’re on solid ground.

But if you’re buying Ejido land? That’s a very different story.

Ejido land is communal farmland. It can’t be sold directly to foreigners unless it goes through a full privatization process first. If someone skips that step and sells it anyway, the transaction could be invalid—and the land could be reclaimed.

Real-World Example: Punta Banda

Back in the early 2000s, over 100 Americans bought homes in a beachfront area called Punta Banda in Baja California. They thought everything was legal. But it turned out the land was Ejido land, and the sales had never been properly authorized. When an heir challenged the transactions, the courts sided with the Ejido, and many buyers lost their homes.

This case is a powerful reminder to check the type of land and verify the title history before you buy—especially if the deal sounds too good to be true.

2. Trusting Developers Who Skip Permits or Paperwork

Some developers begin building or even selling units before they’ve secured the full set of required permits. And while everything might look polished on the outside — modern design, slick marketing, beachfront location — the legal foundation might be missing underneath.

And that can spell disaster for buyers.

Take the Adamar development in Bahía Solimán, near Tulum.

This upscale condo project was built without proper federal environmental permits. Even though it attracted foreign buyers and had major investment behind it, the government eventually stepped in. Mexico’s environmental agency, Profepa, suspended the project — and later, a federal judge ordered its complete demolition and required the land to be environmentally restored.

That’s not just a delay. That’s a total loss.

And for buyers who had already signed contracts or moved in? Many were left scrambling, stuck in legal limbo, with no clear path forward.

Want to Avoid Common Real Estate Mistakes in Mexico?

Before you buy, make sure you’re asking the right questions.

Download our free Mexico Property Buyer’s Checklist and learn how to:

• Confirm a property has a clean title

• Choose the right notario

• Spot red flags in construction and land use

• And more…

Buy with confidence!

What Can You Do?

If you’re buying pre-construction, especially near the coast or in environmentally sensitive areas, ask to see these documents upfront:

• Land title

• Construction permits

• Environmental approvals.

And have those reviewed by someone independent — not just the developer’s in-house team.

If a seller is vague or dodges your questions, that’s a red flag.

3. Relying on a Notario Who Isn’t Working in Your Best Interest

In Mexico, a Notario is not the same as a notary public in the U.S. or Canada. A Notario is a government-appointed official who oversees real estate transactions, but they are neutral—they don’t work for you.

That’s why it’s critical to hire your own real estate attorney.

4. Skipping Final Registration After You Buy

Even after signing, you’re not fully protected until your Escritura (property deed) is registered with the Public Registry. If this step gets skipped, your ownership isn’t fully recorded.

This can happen if buyers assume the Notario or agent handled it—but sometimes, paperwork gets delayed or forgotten.

You should always:

• Confirm that your Escritura is registered

• Ask for proof of registration (folio number, date, and registry info)

• Keep multiple copies (physical and digital)

Registration is what officially secures your ownership rights. Don’t let it fall through the cracks.

Final Thoughts:

The point of this blog isn’t to scare you away from buying in Mexico. It’s to help you buy smarter.

When people lose their homes here, there’s always a reason. It’s not random. And the vast majority of those situations could have been avoided with better due diligence.

So take your time. Ask questions. Get advice. And when something feels off, don’t be afraid to step back.

Mexico is an incredible place to own property. We’ve made it our home, and we love it here. And with the right precautions, your story can be just as joyful.