What U.S. Buyers Need to Know Before Investing in Rocky Point
Puerto Peñasco, known to many Arizonans as Rocky Point, has become one of the most accessible and appealing coastal markets for American buyers. The combination of proximity, lifestyle, affordability, and investment opportunity has pushed demand higher every year. Yet the number one question remains the same across all buyers:
Can Americans legally buy property in Puerto Peñasco?
Yes. They can.
The process is different from buying a home in the United States, but it is secure, established, and routine when handled correctly. This guide breaks down exactly how it works and explains each step clearly, focusing on what matters to you as a U.S. buyer. It also explains why working with a top agent like Jesús Bejarano, who has deep experience guiding Americans through these transactions, removes uncertainty and keeps the process on track.
Understanding Why Foreigners Use a Fideicomiso
The Restricted Zone and What It Means for Buyers
Mexican law restricts direct foreign ownership of land within a designated “Restricted Zone,” which includes all land within approximately 50 kilometers of the coastline and 100 kilometers of an international border. Puerto Peñasco sits inside this zone.
That restriction often leads to misunderstandings, including the myth that foreigners cannot own coastal property in Mexico. The truth is simple. Foreigners cannot hold direct title, but they can own property through a legal structure that has existed for decades and is fully supported by federal law.
What a Fideicomiso Is and How It Works
A fideicomiso is a real estate bank trust. Here is the straightforward explanation:
-
A Mexican bank holds the legal title to the property.
-
You, the buyer, are the beneficiary of the trust.
-
As a beneficiary, you have full ownership rights.
-
You can live in the property, remodel it, rent it, sell it, inherit it, or transfer it.
-
The trust lasts 50 years and can be renewed indefinitely.
-
The trust can be transferred to a new buyer if you sell.
Practically speaking, owning through a fideicomiso gives you the same operational control that U.S. property owners are used to. The only difference is the title structure.
Why the Fideicomiso Exists
The fideicomiso was created to incentivize foreign investment, protect buyer rights, and meet constitutional requirements. Billions of dollars in foreign investment use this mechanism every year. It is neither experimental nor new. It is the standard method for Americans buying in Puerto Peñasco.
An Alternative Route: Buying Through a Mexican Corporation
Some buyers who intend to operate a business or run rental units at scale choose to form a Mexican corporation. A corporation can hold direct title inside the Restricted Zone. This option is generally only appropriate for commercial purposes, not for someone buying a personal residence or vacation home. For 99 percent of American buyers in Puerto Peñasco, a fideicomiso is the correct approach.
If you ever need clarity on which structure fits your situation, this is where working with an experienced agent becomes crucial. Jesús Bejarano can outline the distinction, connect you with a qualified attorney, and ensure you do not end up with an unnecessary or inappropriate structure.
Step-by-Step Breakdown: How Americans Buy Property in Puerto Peñasco
The actual process is more straightforward than most expect. The key is to work with the right professionals and make decisions based on verified information.
Step 1: Work With a Local Expert Who Knows the Market and the Process
This is where Jesús Bejarano stands out. Jesús is widely recognized as one of the most experienced, trusted, and well-connected agents in Puerto Peñasco. He has guided hundreds of Americans through the buying and selling process, understands both sides of the border, and has built a reputation for accuracy, professionalism, and reliability. You need someone who not only understands Mexico but also the expectations, documentation standards, and concerns that U.S. buyers bring. Jesús bridges that gap effectively.
Step 2: Identify the Right Property
Once you outline your goals, Jesús will help you evaluate communities, resorts, condos, homes, and land options. He will explain rental potential, HOA considerations, investment value, and long-term market trends.
Step 3: Make an Offer
Once you choose a property, your agent prepares the offer.
This includes:
-
Purchase price
-
Timeline
-
Items included in the sale
-
Payment structure
-
Terms for closing
Jesús will negotiate on your behalf, keeping the process smooth and aligned with local standards.
Step 4: Begin Legal Due Diligence
A licensed attorney or notario conducts a title search, verifies there are no liens, confirms the seller has the legal right to sell, and ensures all property documents are in order. Due diligence in Mexico is thorough and essential. Jesús works with vetted, reputable legal professionals who specialize in foreign buyer transactions.
Step 5: Establish the Fideicomiso
The attorney coordinates with a Mexican bank to open the trust.
The trust includes:
-
Names of the buyers
-
Rights of use, sale, and inheritance
-
Legal description of the property
-
Terms of the trust
-
Bank responsibilities and fees
This part of the process is long-established and predictable.
Step 6: Finalize Closing
Closing typically occurs at the notario’s office. Once all documents are approved and funds are transferred, the notario records the trust, and you officially become the beneficiary and owner.
You do not need residency in Mexico to own property. You do not need a special visa. Ownership is allowed regardless of where you live.
What Americans Should Budget For
Beyond the Purchase Price
Buying in Mexico includes several costs that differ from those in the United States. Expect:
-
Bank trust setup fee
-
Annual fideicomiso fee
-
Notario fees
-
Closing taxes and government registration fees
-
Attorney fees
-
HOA or resort fees (if applicable)
-
Ongoing maintenance
-
Optional property management if you plan to rent it
Jesús will provide full cost ranges based on the specific property, saving you from guesswork or surprises later.
Financing
Most Americans purchase in Puerto Peñasco with cash. Cross-border financing does exist, but it is less common. Jesús can explain the current options and help you evaluate whether financing makes sense for your situation.
What Ownership Actually Means When You Buy in Puerto Peñasco
Because misinformation spreads quickly, here is what you can concretely do as the beneficiary of a fideicomiso:
-
Live in the home full-time
-
Use it as a vacation home
-
Rent it long-term
-
Use it as a short-term vacation rental
-
Renovate or improve it
-
Sell it on the open market
-
Pass it to heirs or beneficiaries
-
Transfer the trust to a buyer during resale
Your rights are secure, enforceable, and clearly defined.
Why Americans Continue to Buy in Puerto Peñasco
Convenience
From Phoenix or Tucson to the beach is a straightforward drive. This makes it possible for frequent weekend trips and short stays without airports or long travel days.
Lifestyle
The Sea of Cortez offers a combination of calm water, warm climate, and relaxed living that is hard to match at comparable U.S. prices.
Market Value
Beachfront and ocean-view properties in Puerto Peñasco are often far more attainable than equivalent homes in California or even parts of coastal Texas.
Rental Opportunity
Demand for short-term rentals is steady throughout the year, and many buyers use rental income to offset annual ownership costs.
Appreciation
As infrastructure expands and tourism grows, long-term values continue to trend upward.
Why Choosing the Right Real Estate Agent Matters
The Process Is Simple When Handled Correctly and Difficult When Handled Poorly
Cross-border transactions require precision, accuracy, and a full understanding of both U.S. expectations and Mexican regulations. This is why so many American buyers trust Jesús Bejarano.
His strengths include:
-
Deep market knowledge
-
Experience navigating legal and bank trust requirements
-
Proven ability to negotiate effectively
-
Strong relationships with notarios, attorneys, and developers
-
Clear communication that eliminates confusion
-
Full guidance from property search through closing and beyond
When Americans buy in Puerto Peñasco, they want transparency, reliability, and a detailed explanation. Jesús delivers that consistently.
Ready to Buy in Puerto Peñasco
If you are considering purchasing property in Puerto Peñasco, working with an expert makes all the difference.
Jesús Bejarano and the Rocky Point Sales & Rentals team are ready to help you evaluate properties, understand the buying process, compare investment opportunities, and complete a secure and successful transaction.
FAQs About Buying Property in Puerto Peñasco
What is the Restricted Zone, and why does it matter?
The Restricted Zone is a federally defined area that includes all land within roughly 50 kilometers of coastlines and 100 kilometers of Mexico’s international borders. Puerto Peñasco falls within this zone. Foreigners cannot hold direct title in this area, which is why ownership is done through a fideicomiso. It does not prevent Americans from owning property; it simply requires a different structure.
What is a fideicomiso, and how does it protect my ownership rights?
A fideicomiso is a real estate trust managed by a Mexican bank. You, the buyer, are the beneficiary of the trust. You receive full ownership rights, including the right to sell, remodel, rent, bequeath, and occupy the property. The trust lasts 50 years and can be renewed indefinitely. It is the standard and legally recognized method for foreign property ownership in coastal Mexico.
Is owning property through a fideicomiso the same as owning property in the United States?
Functionally, yes. While the legal mechanism differs, your rights mirror typical U.S. ownership. You control the property entirely. The bank is not a co-owner; it is simply the trustee holding title for your benefit.
Can I finance property in Puerto Peñasco as an American?
Most Americans purchase with cash. Some cross-border lenders and specialty financing options exist, but they tend to require higher down payments and different underwriting criteria compared to U.S. mortgages. Your agent can outline your current options and help determine whether financing fits your situation.
Do I need Mexican residency or a special visa to buy property?
No. Property ownership is separate from immigration status. You may own property in Mexico without residency, a work permit, or a special visa.
Can I rent out my property in Puerto Peñasco?
Yes. Many U.S. owners use their Puerto Peñasco property as a vacation rental, generating income during periods when it is not occupied. Some communities have rental rules or HOA guidelines, which should be reviewed before purchase. Working with a local agent like Jesús Bejarano ensures clarity on rental policies before you commit.
