Mexico development and the cost of new construction is considerable less then in the USA. New construction by a Mexico contractor will generally range from $60 - $90usd per square foot. Always seek local references and competitive bids. Investors who are able to live in Mexico and act as owner/builder have been able to build high quality homes in the $40 - $60usd per square foot range. Commercial and residential development fees are considerably less than USA fees.

Mexico real estate disclosure guidelines for new development buyers are summarized below. Always have Mexico legal documents reviewed by a Mexico attorney who is working on your behalf.

1. Always ask for a project disclosure statement. Extreme caution is advised if the project developer does not have a formal disclosure statement. A project disclosure statement should include, but not be limited to:

A. Project owner/developer information including business structure, Mexico Tax ID and main office location.

B. Project Covenants, Conditions or Restrictions for the development and the individual property owner.

C. Homeowners' Agreement with by laws, rights and maintenance budget.

2. Always inspect a copy of the current public deed (escritura publica), recording information and a current copy of the lien certificate (certificado de libertad de gravamen).

3. If land was converted from Ejido or Communal land to private land for purposes of development, request a copy of the recorded document which shows the date of conversion.

4. Obtain copies of all applicable Mexican state/municipal development authorizations. There is limited government compliance oversight. Caution: Many projects are in progress without proper land title and/or development approvals.

4. Always require that title insurance be issued from a global title insurance company.

5. Purchase terms prior to project completion should allow for any deposit or purchase funds to be placed in a neutral, third party escrow or trust account. When developer performs as agreed and clear title is conveyed, the money is released. Never release money to a developer without a full disclosure statement, evidence of proper development approvals and a certificate of completion for occupancy.

Find comprehensive summary of resources for Mexico law and government from the Library of Congress.

Find Mexico economic information and news from the Economist.

Find Law Firms in Mexico.

The Mexico Embassy in the United States is located at 1911 Pennsylvania Ave. NW, Washington, DC 20006 (tel. 202-728-1600). Consular offices are located at 2827 - 16th St. NW, 20009 (tel. 202-736-1012), and the trade office is co-located at the embassy (tel. 202-728-1686).

The U.S. Embassy in Mexico is located at Paseo de la Reforma 305, 06500 Mexico, DF. U.S. mailing address: Box 3087, Laredo, Texas 78044-3087; tel. (from the U.S.): (011) (52) 555-080-2000