Here are the top 5 mistakes you should avoid when considering buying real estate in Mexico. 1. Not finding a trustworthy and experienced real estate agent Fact: Mexico does not require a license for someone to sell property. This means that any person off the street can claim to be a real estate agent without any training or experience. It is wise to find an agent that you are referred to by someone you trust or make sure they are a member of the National Association of Realtors (www.realtor.com) and the Mexican Association of Real Estate Professionals (www.ampinacional.com). 2. Making a "good faith" deposit Handing over thousands of dollars to someone you barely know is very risky. Often times people can be fooled when the seller persuades them that they can be trusted. However, they may not even own the home! A large reputable escrow service can hold funds until ownership is fully transferred and all your requirements are met. 3. Not performing a title search This should be one of the first steps of buying a property in Mexico. There are numerous reasons why the seller does not have legal title to the property. The builder may not have received the required state/municipal development approvals. The land may be Ejido land (commons set aside for farmers by the government) which may not have been properly privatized. The book, Cashing in on a Second Home in Mexico recommends asking for a copy of the title and a copy of the lien certificate. 3. Not buying a title insurance policy While you may not experience the disaster of buying a property and later discovering that the title is legally owned by someone else or some of the other scenarios mentioned above, it is good to eliminate such risk. Title companies can provide you insurance, that will protect your investment if the title turned out to be invalid. 4. Not conducting enough research on the location You may take for granted a lot of the things that you have in the U.S., such as reliable water and electricity, near by stores to buy necessities, and near by medical facilities. Remember, that while many resort towns in Mexico are modernized, Mexico is still a developing country. Spend some time at the property during the time of the year that you plan to stay there. According to Cashing in On a Second Home "the lively winter, beachfront community might turn into a boring, deserted, dead summer town". 5. Not considering neighborhood quality A good community will help home values up and be a more pleasant place to live. Consider the percentage of homes in the neighborhood that are owned and what the local crime rate is.