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When purchasing property in the U.S. and Canada, buyers (and lenders) require title insurance. It is equally important when you purchase property in Mexico. The Living Trust format used to acquire Mexican coastal property (a Fideicomiso) does not take the place of or exclude the need for title insurance. But not all sellers  offer it, and even when it is, some title insurance companies exclude risks such as fraud, developer liens, and government and Ejido (common law possession) claims. Demand title insurance, and if the title company is not willing to cover these excluded items, find another. Next: Avoiding Litigation Cost Limits.

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