The desire to own Mexican beach property is understandable. The allure of a tropical paradise is powerful--especially for one where unique freedom and serenity are readily accessible. Many people who have considered such a purchase are dissuaded because they fear for the security of their investment or think that the legal barriers for foreign ownership of Mexico Beach properties are insurmountable.

Fortunately, this is no longer the case. In 1917, for reasons of national security, the Mexican government enacted a law forbidding foreigners from owning property in the excluded zone. This restricted zone was defined as property located within 31 miles of the coast or 60 miles from any border. This meant that foreigners wishing to purchase a Mexico beach property had to do so by using a Mexican to stand for him in name.

This arrangement created several difficulties. First and most obviously, if the Mexican in whose name the deed was placed was dishonest, investors could lose everything. Also, since the deed was legally in the Mexican's name, if that person became the object of any legal proceedings, then the ownership of the property could be lost.

With the passage of a new Foreign Investment Law in 1971, these problems have now been overcome. A foreign buyer can purchase Mexico beach properties by making a trust with a Mexican bank. This simple legal procedure allows the foreigner full ownership rights on the property--you can sell, rent, remodel or pass on your property to your heirs without difficulty.