The closing process in Mexico, step by step

The process at a glance

Every deal has its own pace, but the order is almost always the same. If you are a foreign buyer in the restricted zone, the bank trust runs in parallel with due diligence and is usually what sets the timeline.

Offer, deposit and promissory contract

It starts with an offer. Once the seller or developer accepts, you pay a reservation deposit (apartado), usually MXN 20,000 to 50,000, to take the lot off the market. Get a receipt that names the lot, how long it is held and when the deposit is refundable.

Next comes the promissory contract (contrato de promesa de compraventa). Think of it as the purchase agreement: it sets the price, the down payment, the closing deadline, who pays which costs and the penalty if either side walks away. Make the purchase contingent on clean due diligence, and if possible have the closing notary review it. There is no escrow company by default, so this contract is your main protection until closing.

Due diligence: what gets checked before you sign

This is the stage that protects you. The notary handles it with documents from the seller, and you should see them too. The checks:

• No liens: a certificate from the Public Registry (certificado de libertad de gravamen) confirming there is no mortgage, attachment or other encumbrance.
• The seller is the owner of record: the recorded deed must be in the seller's name, and a married seller may need their spouse's signature.
• Nothing owed: property tax, water and club HOA dues paid up, with recent receipts or letters.
• Zoning: residential or mixed use, consistent with your plans and with the club rules.
• Survey and boundaries: the physical lot matches the measurements in the deed and the cadastral map.
• Not ejido land: communal ejido land cannot be sold to individuals until it goes through a conversion to private ownership. It is rare inside an established country club, but it is always confirmed.

If due diligence turns up a problem, the promissory contract should let you cancel and get your deposit back. Make sure that condition is in writing.

The notario is not a notary public

A Mexican notario público is an experienced attorney appointed by the state government after a competitive exam, with public faith: what they certify carries full legal weight. The notary reviews the deal, calculates and collects the taxes, drafts the deed and records the sale. That is very different from a US notary public, who only witnesses signatures. In practice the notario plays the role of your closing attorney and title company combined.

By custom the buyer chooses the notary, since the buyer pays the fees. When you buy directly from the developer, there is usually a notary assigned to the whole development; you can still ask for an itemized estimate and ask questions. Itemized costs are in our closing costs guide.

Bank trust, signing, payment and recording

If you are a foreigner and the lot is within 50 km (31 miles) of the coast, as is the whole Riviera Maya, you buy through a bank trust (fideicomiso). The notary requests the SRE permit and a Mexican bank opens the trust; the bank holds title and you are the beneficiary, with full rights to use, rent, sell and leave the property to your heirs.

1. Review the draft deed: the notary sends it a few days before signing. If you do not read Spanish, ask for a translation; a court-certified interpreter will be present at signing.
2. Signing: buyer, seller and, when there is a trust, the bank's trust officer sign before the notary. Bring a valid passport and your Mexican tax ID (RFC) if you have one.
3. Payment: by wire transfer to the seller's or the notary's account, never in cash. Mexico's anti-money laundering law caps cash in real estate deals at about 8,025 UMA, roughly MXN 900,000, and the notary must document the source of funds.
4. Taxes: the notary pays the acquisition tax and, where applicable, withholds the seller's capital gains tax.
5. Recording: the notary files the deed at the Public Registry in your name or the trust's name.
6. Final deed (testimonio): you receive the certified copy of the deed with its recording data, 1 to 4 months after signing depending on the municipality.

Closing remotely with a power of attorney

You do not have to be in Mexico on signing day. You can grant a special power of attorney to someone you trust, or to an attorney, to sign on your behalf. You sign it before a notary at home and have it apostilled; the US, Canada and France are all parties to the Apostille Convention. In Mexico it is translated by a certified translator and formalized before a Mexican notary.

Another route is to sign the power of attorney at a Mexican consulate, which needs no apostille. Allow 2 to 4 weeks for the document to be ready and valid in Mexico. Ask the Mexican notary for the exact wording before you sign it so it covers everything, including the bank trust. For the bigger picture, see our guide to buying property in Mexico as a foreigner.

Buying from the developer vs. a resale

The overall order is the same, but the paperwork depends on who you buy from.

We stay with you until closing

We help you review the lot's documents, coordinate with the notary and the bank, and set up a remote signing if you cannot travel. This guide is general information; for your specific case the notary has the final word. We work in English, Spanish and French.

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