This is from Sign On San Diego: http://www.signonsandiego.com/news/mexico/tijuana/20051002-9999-1n2rush.html
"When Americans go to Mexico, they should do their due diligence," said Jorge A. Vargas, a specialist in Mexican law at the University of San Diego. "You are entering an alien legal world, so don't be so trusting with people. The conveyance of property is completely different from the American system."
The Baja California peninsula can be particularly problematic. Many parcels suffer from lingering land title disputes, which are a legacy of the region's distance from Mexico's ruling center and decades of little development. Inaccurate land surveys are only now being corrected as parcels are being developed and sold.
"There are a lot of issues dealing with conflict of title all along the coast from Tijuana to Ensenada," said attorney José Larroque, with the Tijuana office of Baker & McKenzie, an international law firm. "For many years, these properties were vacant. Now that they're being developed, all these owners pop up."
Buyers have ended up on land with multiple titles, or without services or have built in the restricted federal maritime zone. A mistake can take years to correct.
Without proper precautions, "this boom can create a new wave of problems," said Silvia Perez-Thompson, a real estate consultant in Rosarito Beach. "I think it's a great investment, but you have to understand the laws."