Centralizing Notaries: A Risk to Legal Certainty and Federalism in Mexico

06/08/25

In recent days, news has emerged regarding a proposed reform to remove notaries from the jurisdiction of state governments and place them under the direct control of the Ministry of Economy, while also establishing a national fee schedule.

At first glance, the proposal might seem like a step forward toward transparency and meritocracy. However, the experience of public brokerage (correduría pública) in Mexico warns us that excessive centralization can lead to the institutional weakening of a key figure in the legal and economic life of the country.

The Lesson of Public Brokerage

Public brokerage was created in 1992 through the Federal Law of Public Brokerage to modernize commercial intermediation, granting these professionals public faith in acts of commerce, valuation, mediation, and arbitration.

From its inception, the figure was controlled exclusively by the Ministry of Economy: exams, registration, sanctions, and authorization of positions all depend on a single federal authority.

This centralized model brought consequences: absence of real territorial presence, lack of mandatory professional associations, no community integration, and limited social recognition. Today, in much of the country, there is not a single practicing public broker, and in the states where they do exist, their numbers are low and their activity limited.

The Value of the Current Notarial Model

The Mexican notariat, of the Latin type, is distinguished by its local roots, professional organization, and close supervision. Each state has a College of Notaries that oversees professional ethics, promotes training, and responds to the legal needs of its community.

This decentralized structure allows the notary to be not only an official certifier, but also an agent of social cohesion and legal security—close to the citizen, familiar with the local environment, and able to adapt legal solutions to regional realities.

The Risks of Replicating the Centralized Model

Stripping state governments of control over the notariat and transferring it to a federal agency would imply:

• Loss of territorial presence: Notarial appointments could be concentrated in major cities, leaving gaps in rural or politically less influential areas.

• Community detachment: By depending on a central authority, notaries would lose their connection with local realities.

• Bureaucracy and delays: Procedures and authorizations would be subject to longer administrative processes, less responsive to regional urgencies.

• Risk to federalism: The notarial function would cease to be an auxiliary service of the State at the local level and would instead become just another federal office, contrary to the spirit of Article 40 of the Constitution.

What Can Be Improved

I fully agree that competitive exams should be strengthened, transparency in appointments must be ensured, and notarial services should be made more accessible. These measures can and should be implemented at the local level, with national oversight, but without sacrificing the autonomy and regional presence of the notariat.

The hybrid model—with national rules on access and ethics, but local operation and control—is the one that best balances transparency with efficiency.

Conclusion

Public brokerage is a reminder that centralization does not guarantee institutional strength; on the contrary, it can dilute social presence and weaken the certifying function. For decades, the Mexican notariat has demonstrated that its strength lies in its closeness to the people, its collegial structure, and its social legitimacy.

Preserving these elements is not merely a guild issue but a matter of public interest: the legal certainty of citizens.

Author: Dr. Alma Lilia Luna Olivas

Notary Public No. 46 of the State of Quintana Roo

Notarial Advice to U.S. Citizens for the Acquisition of Real Estate in Restricted Zones in Mexico

18/08/25

Public Notary No. 46 of the State of Quintana Roo

At Notary Office No. 46 of the State of Quintana Roo, we have built a solid track record of professional, ethical, and strategic service to U.S. citizens interested in acquiring real estate in Mexico’s restricted zones, particularly in coastal areas such as Puerto Morelos, Cancún, Tulum, and the Riviera Maya.

The Political Constitution of the United Mexican States, in Article 27, establishes restrictions preventing foreigners from directly acquiring real estate within a strip of 50 kilometers from the coast and 100 kilometers from the border. However, Mexican legislation allows the use of the bank trust (fideicomiso) mechanism, enabling foreign individuals to enjoy all rights of use, enjoyment, and transfer of such properties under a secure and fully regulated legal structure.

As a Notary, our work goes beyond documentation. We accompany the foreign buyer from the initial stage of property exploration, providing clear guidance on the legal viability of the land, its ownership regime, environmental restrictions, as well as the selection of the most suitable trustee institution. We then oversee the drafting of the trust agreement, verify the legality of each act, and ensure that the transaction is duly registered with the Public Registry of Property.

One of our core commitments is to clearly explain every step of the process in the client’s own language. We provide certified translations, ensure efficient response times, and coordinate the involvement of all relevant parties: trustee banks, developers, real estate agents, appraisers, and cadastral experts. For those who do not reside permanently in Mexico, we also offer secure legal representation through notarized powers of attorney duly apostilled.

Our goal is to ensure that every foreign citizen acquiring property in a restricted zone does so with absolute legal certainty, transparency in costs, and full clarity regarding their rights and obligations. In a globalized context, providing certainty to foreign investors also means strengthening Mexico’s legal prestige and that of our notarial institutions.

The Notary Office No. 46 of Quintana Roo is proud to serve as a bridge of legality and trust between nations, helping to build wealth with legal security in every transaction.

Author: Dr. Alma Lilia Luna Olivas

Notary Public No. 46 of the State of Quintana Roo

Notarial Advice to U.S. Citizens for the Acquisition of Real Estate in Restricted Zones in Mexico

10/09/25

Mexico, through its Political Constitution, strategically protects its coastlines and borders under Article 27, which establishes that foreigners may not directly acquire ownership of real estate located within the so-called “restricted zone”, defined as a strip of 50 kilometers from the coast and 100 kilometers from the country’s land borders.

However, through a modern legal mechanism fully recognized under Mexican law—the bank trust (fideicomiso)—U.S. citizens and individuals of any nationality may acquire real estate in these areas with full legal certainty and total enjoyment of their rights of use, enjoyment, lease, inheritance, and sale.

The restricted-zone trust is a contract through which a Mexican bank, duly authorized as trustee, acquires the property in the name of the foreign buyer. The bank has no right of use or disposal; its function is strictly administrative. The real beneficiary of the trust—the fideicomisario—is the foreigner, who in practice exercises all the rights inherent to ownership.

At Notary Office No. 46 of the State of Quintana Roo, we accompany our foreign clients from the selection of the property through to the signing of the trust deed, overseeing every legal detail: from verifying the title of ownership to registering with the Public Registry, as well as coordinating with the trustee bank, appraisers, translators, and real estate agents.

We also provide certified translations, powers of attorney for legal representation, and advice in the client’s own language, ensuring clarity and transparency at every step. Our goal is for U.S. citizens investing in Mexico to do so with absolute security, within a framework of respect for Mexican law and protection of their assets.

The trust is not a limitation but rather a bridge of legality that allows for orderly and protected access to Mexican real estate. As a Public Notary, it is an honor for me to help build this legal trust between nations and to open the door to shared development in the most beautiful regions of the country.

Author: Dr. Alma Lilia Luna Olivas

Notary Public No. 46 of the State of Quintana Roo

Artificial Intelligence and Notarial Practice: Algorithmic Transparency vs. Professional Secrecy

Nowadays, artificial intelligence (AI) has become a support tool in multiple fields: from process automation to the management of legal information. However, its technological nature poses a fundamental difference compared to notarial practice: while AI keeps no secrets, the notary is legally bound to preserve them.

Artificial intelligence and the absence of secrecy

AI systems operate by processing large volumes of data to deliver results, predictions, or analyses.

• The information they receive is stored, shared across servers, or used to feed algorithms.

• AI does not distinguish between what is confidential and what is public, unless strict programming and human oversight exist.

• As a technological tool, it lacks the moral and legal obligation to keep secret what it processes.

In this sense, AI represents algorithmic transparency: everything that enters the system may be accessible, replicable, or auditable.

The notary and the obligation of professional secrecy

Unlike AI, the notary public is endowed with public faith and bound by professional secrecy. This implies that:

• They must safeguard what they come to know by virtue of their office.

• They cannot disclose information contained in wills, powers of attorney, contracts, or deeds.

• Secrecy is preserved even after the act has been completed or after the grantor’s death.

Professional secrecy is a cornerstone of notarial trust, without which individuals would not dare to express their will with full assurance.

Key difference: trust vs. efficiency

AI contributes efficiency, speed, and large-scale data analysis, but it does not guarantee confidentiality. The notary, on the other hand, provides legal certainty, protection, and trust thanks to their duty of silence and safeguarding the will of the parties.

Conclusion

Artificial intelligence and notarial practice are two distinct realities that can complement each other. While AI transforms the way we process information, the notary ensures that legal acts are carried out with secrecy, certainty, and legality. The great difference is that AI keeps no secrets—while the notary does.

Author: Dr. Alma Lilia Luna Olivas

Notary Public No. 46 of the State of Quintana Roo

Crypto States, USB Flash Drives, and the International Legal Framework for Virtual Asset Service Providers

I. Introduction

The digital revolution of the 21st century has given rise to an unprecedented legal phenomenon: Crypto States and sovereign digital cities, accompanied by an economy supported by virtual assets and blockchain technologies. This shift has transformed the way States conceive sovereignty, taxation, and the regulation of transactions, while also introducing new challenges in notarial practice, cybersecurity, and asset protection. The use of the USB flash drive —as a portable medium for storing keys, smart contracts, or even digital sovereign identities— has become a symbol of the new technological sovereignty: a data-based nationality located outside physical territory.

II. The Emergence of Crypto States

Crypto States are sovereign or semi-sovereign structures built on blockchain and decentralization as pillars for identity, economy, and digital governance. Representative examples:

1. Estonia (E-Residency Program)
   Since 2014, Estonia has offered electronic residency that allows anyone to create a company, sign documents, and operate legally from outside the country. The Estonian State certifies identity and issues cryptographic digital signatures, setting a global benchmark in blockchain governance.

2. Liberland and Satoshi Island
   Liberland, on the border between Serbia and Croatia, defines itself as a “free crypto state,” accepting Bitcoin and Ethereum as means of payment. Satoshi Island, in Vanuatu, operates as a tokenized community where property is proven through real estate NFTs.

3. Ongoing Projects: Prospera (Honduras), CityDAO (Wyoming, USA), and Zuzalu (Montenegro)
   These initiatives explore a hybrid form of digital and physical sovereignty, where blockchain replaces traditional bureaucracy. The common element: a parallel economy supported by virtual assets, with its own rules and governance mechanisms based on code.

III. The USB Flash Drive as a Legal and Technological Medium

In the realm of digital legal security, the USB flash drive —or secure-hardware USB device— performs three essential functions:

1. Physical support for cryptographic keys
   It stores private and public keys, equivalent to an advanced electronic signature or a person’s digital identity token.

2. Backup of notarial and blockchain information
   Notaries and digital certifying officers may use it to store copies of document hashes or timestamps, which serve as evidence of the existence of electronic legal acts.

3. Inheritance and post-mortem custody
   In modern inheritance proceedings, the flash drive may contain the “digital vault” with access keys to wallets, contracts, and encrypted documents, supported by specific testamentary clauses.

From a legal perspective, the flash drive is a physical extension of electronic consent; its loss or misuse may entail consequences equivalent to forged handwritten signatures or identity theft.

IV. International Legal Framework for Virtual Asset Service Providers

Virtual Asset Service Providers (VASPs) are entities that manage the exchange, custody, conversion, and transfer of cryptocurrencies. Their international regulation is in the process of consolidation.

1. European Union – MiCAR Regulation (2024)
   Regulation (EU) 2023/1114 on markets in crypto-assets (MiCAR) establishes licensing and obligations for:

• Crypto-asset custodians

• Trading platforms

• Issuers of asset-referenced tokens

• Crypto investment advisory service providers

All VASPs must obtain authorization and be supervised by the national financial authority (CNMV, AMF, etc.). MiCAR imposes transparency, cybersecurity, and solvency obligations comparable to those in the banking system.

2. United States – FinCEN and SEC
   The U.S. framework distinguishes between money transmitters (FinCEN) and security tokens (SEC). Each state may issue licenses (e.g., the New York BitLicense). Platforms must comply with KYC, AML, and FATF reporting, along with controls against financial crimes and international sanctions (OFAC).

3. Latin America
   Mexico, through the Fintech Law (2018), regulates “Financial Technology Institutions” and allows the operation of virtual assets authorized by the Bank of Mexico, though they are not recognized as legal tender. Brazil (Law 14.478/2022) and Chile (Fintech Law 2023) are advancing in similar frameworks, highlighting the incorporation of the principle of shared responsibility between provider and user.

4. Asia

• Japan: Pioneer in recognizing Bitcoin as a means of payment under the Payment Services Act (2017), supervised by the FSA.

• Singapore: A balanced regulatory model; requires MAS licensing and promotes FinTech innovation through sandbox environments.

• Hong Kong: In 2023 imposed mandatory licenses for exchanges with a focus on retail investor protection.

V. Challenges and Perspectives

The main legal challenges faced by service providers and Crypto States include:

1. Global harmonization of AML/CFT standards in line with FATF.

2. Secure key custody and liability for loss of access.

3. Determining applicable jurisdiction when infrastructure is decentralized.

4. Coexistence of digital sovereignties with traditional States.

International notarial practice has a new field of action: the certification of digital identities, technological wills, and public trust in the blockchain world.

VI. Conclusion

Crypto States represent a legal paradigm shift: sovereignty no longer depends solely on territory but on technological capacity to generate trust. The USB flash drive becomes a legal symbol of the digital citizen, bearer of their sovereign key. And crypto service providers become the new intermediaries of digital public trust, subject to a regulatory framework increasingly resembling that of the banking sector.

The future of legal security will depend on a strategic alliance among notaries, lawmakers, and blockchain system architects, ensuring traceability, transparency, and data integrity.

Author: Dr. Alma Lilia Luna Olivas

Notary Public No. 46 of the State of Quintana Roo

Proposal for the Creation of the International Commission on Artificial Intelligence and Digital Legal Security (CIAI-UINL)

06/11/25

This proposal is formulated in accordance with articles 26 to 28 of the Statutes of the International Union of Notaries (UINL), with the purpose of creating a specialized International Commission on Artificial Intelligence and Digital Legal Security (CIAI-UINL), aimed at analyzing, harmonizing, and guiding the use of emerging technologies in the Latin-European notarial function.

1. Statutory Basis In accordance with articles 26 to 28 of the UINL Statutes, the Permanent Council has the power to create Technical or Special Commissions for the study of specific topics. The President may propose their establishment with a favorable opinion from the Coordination Committee, subsequently designating its Presidency and Executive Secretariat. This provision allows for the incorporation of the Artificial Intelligence Commission as a permanent or special technical body.

2. Doctrinal and Strategic Justification Artificial intelligence (AI) has transformed legal practices, including document authentication, identity verification, and preventive legality control. However, there is no specific commission within the UINL dedicated to this matter. The CIAI-UINL will fill this void by generating ethical, technical, and legal criteria that guide the responsible use of AI in the notarial function.

3. Proposed Objectives

1. To develop legal and ethical standards for the use of artificial intelligence in the notarial function.

2. To analyze risks and opportunities of automation, big data, and blockchain in public faith.

3. To propose protocols for digital validation and data protection.

4. To issue technical reports to international organizations (OECD, FATF, UN).

5. To coordinate pilot projects among national notariats.

6. To develop manuals of good practices in digital environments.

4. Proposed Structure

• Presidency: Appointed by the Permanent Council.

• Executive Secretariat: A member of the Technology Commission or the AML/LAB Commission.

• Integration: One delegate per continent, plus invited university experts.

• Thematic Subcommittees:

  • Ethics and Legal Intelligence

  • AI and Notarial Blockchain

  • Data Protection and Cybersecurity

  • Automation and Digital Legal Translation

5. Creation Procedure

1. Formal submission of the proposal to the President of the UINL, signed by at least two National Delegations or one Regional Commission.

2. Opinion from the Coordination Committee in accordance with Article 27.

3. Approval by the Permanent Council through simple majority vote.

4. Appointment of the Presidency and Executive Secretariat.

5. Official publication in the General Assembly and on the UINL website.

6. Model Text for the Official Proposal Proposal Note The Delegations of Mexico and Spain, considering the relevance of artificial intelligence in the exercise of the notarial function and its impact on preventive legal security, propose the creation of the International Commission on Artificial Intelligence and Digital Legal Security (CIAI-UINL). Its purpose will be to study, develop, and harmonize criteria regarding the ethical, legal, and technological use of artificial intelligence applied to the notary profession, guaranteeing the preservation of public faith in digital environments. Signed in [place and date].

7. Conclusion The International Commission on Artificial Intelligence will consolidate the leadership of the Latin Notariat in the digital transformation of preventive law. It will bring together experts from the five continents, integrating ethics, law, and technology under the doctrinal authority of the UINL. The public faith of the future will be digital, but its essence will remain human.

Dr. Alma Lilia Luna Olivas

Notary Public No. 46 of the State of Quintana Roo

Member of the Commission of American Affairs of the UINL