Mexico Real Estate Buying Process

1. Choose a Property
Start by defining your investment goals—whether it’s a vacation home, rental property, or long-term residence. Work with a reputable real estate agent who understands the local market and can guide you through available listings, legal requirements, and pricing. Ensure the property has a clear title and is free of legal disputes.

2. Make an Offer & Sign a Sales Agreement
Once you’ve selected a property, submit an offer. If accepted, both parties sign a Promissory Agreement (Contrato de Promesa de Compraventa), outlining the purchase price, payment schedule, and conditions. A deposit, usually 5-10% of the purchase price, is required to secure the deal. This agreement is legally binding and protects both buyer and seller.

3. Due Diligence & Trust Setup
A notary public (Notario Público) conducts due diligence, verifying the property’s legal status, title history, and any outstanding debts.

If the property is within Mexico’s restricted zone (within 50 km of the coastline or 100 km from international borders), foreigners must purchase through a Fideicomiso (bank trust), which grants all ownership rights while complying with Mexican law. The trust is renewable every 50 years and allows the owner to sell, lease, or inherit the property.

4. Purchase Agreement & Closing
Once due diligence is complete, a Definitive Purchase Agreement (Escritura Pública) is signed in the presence of a notary. The buyer makes the final payment, and all necessary documents are prepared for registration. This step ensures the legal transfer of ownership.

5. Title Registration
The notary registers the property with the Public Registry of Property (Registro Público de la Propiedad) in the corresponding municipality. This process finalizes ownership transfer and ensures the buyer’s legal rights to the property. The buyer will then receive an official property deed (Escritura).

6. Taxes & Fees
Buyers should budget for closing costs of 5-8% of the purchase price, which typically include:

•Acquisition Tax: ~2% of the property’s value
•Notary & Legal Fees: 1-2%
•Registration Fees: ~0.5-1%
•Fideicomiso Setup (if applicable): $2,000–$3,000 USD, plus annual maintenance fees ($500 USD)

Final Thoughts
Buying real estate in Mexico is a straightforward process when done correctly. Working with a qualified real estate broker such as Renanza Real Estate Services, and a reputable notary ensures a smooth transaction and protects your investment.