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Closing, step
by step.
Everything that happens between “I want that one” and the deed with your name on it.
Buying here is safe and it is routine, but the sequence is not the one you know from home. There is a bank trust, a notary with far more authority than a title company, an acquisition tax set by your municipality, and a public registry that finishes the job months after you sign. This is the whole path, in order, with the real timelines and the real costs.
Get represented, then
set a real budget
In Mexico the commission is paid by the seller, so buyer representation costs you nothing and changes everything. Your broker verifies what you are being told, negotiates on your behalf, and runs the file to closing.
Decide what the property is for
Personal use, rental income or resale in five years lead to different buildings, different zones and different tax setups. Say it out loud before you shop, because it decides whether short term rental permission matters, whether you need an RFC, and whether a condo with strong hotel style management beats a quiet gated house.
Know how you are paying
Most purchases here are cash. Mexican mortgages for foreigners exist but are slow and expensive, so buyers usually bring funds from home, use a home equity line, or take developer financing on pre construction with 30 to 50 percent down and the balance over the build.
Build the budget with everything in it
- Purchase price in USD or MXN, and the exchange rate you will actually get, not the headline rate.
- Closing costs of 7 to 10 percent on top of the price, paid by you, the buyer.
- Trust setup and the SRE permit if you are buying residential property on the coast.
- Annual holding costs: predial, HOA or maintenance, the yearly trust fee, insurance, and management if you rent.
- A reserve for furniture, minor works and the first months of operation if the plan is rental income.
Ask for the net number in writing before you commit to anything. A broker who cannot tell you your all in cost on day one will not be able to tell you anything useful on day thirty.
The fideicomiso,
explained plainly
The Riviera Maya sits inside the restricted zone, the strip within 50 kilometers of the coast where Article 27 of the Constitution does not allow a foreigner to hold direct title to residential land. The solution is nearly a century old and completely standard.
What a bank trust actually is
A Mexican bank holds the title as trustee and you are the named beneficiary. You use the property, remodel it, rent it, mortgage it, sell it and leave it to whoever you name. The bank cannot use the property, cannot borrow against it, and cannot sell it without your written instruction. The trust is established in the same document as your title, so the trustee bank is always named on the deed you hold. It runs 50 years and renews for another 50 on request.
What it costs to set up
- USD 522, that is USD 450 plus 16 percent tax, for the first year of the trustee bank fee, paid in advance.
- USD 522, again USD 450 plus tax, for the execution of the title.
- MXN 15,530 for the permit from the Ministry of Foreign Affairs, the SRE, which takes 10 to 20 business days. There can be an extra cost for the person who handles it in Mexico City.
- Around USD 2,000 in total, and then the bank fee every year. Both bank amounts move a little depending on which bank you choose.
When a Mexican corporation makes more sense
If you are buying several units to operate as a business, buying commercial or land for development, or you want the income taxed as a Mexican company, a corporation can own restricted zone property directly for non residential use. It carries monthly accounting and formal obligations, so it is the right answer for an operating business and the wrong one for a single vacation condo.
The one thing to refuse outright
Ejido land. Communal agrarian land cannot be sold to a foreigner and cannot be placed in a trust until it has been fully privatized and titled. It is cheap for a reason. If a seller shows you an agrarian certificate instead of a deed registered in the Registro Público de la Propiedad, walk away.
Name your substitute beneficiaries in the deed. It is what keeps the property out of a Mexican probate if something happens to you, and it is decided at the table if you have not decided it before.
The offer, the deposit
and the promise agreement
Mexican law recognizes verbal agreements, which is exactly why everything goes in writing. There is no MLS style standard form here, so the paperwork is only as good as the people writing it. Two documents matter: the offer to purchase, and the contrato de promesa de compraventa that turns an accepted offer into a binding transaction.
The offer to purchase
Price, currency, payment plan, the earnest money deposit, what is included, who pays what, and the deadline for the seller to accept. Furniture, appliances, a golf cart, a parking space and a storage unit are all negotiable and all forgotten later if they are not written down. Offers usually stay open three to five days and travel with a reservation deposit of around USD 5,000 placed in escrow. If the seller accepts, that money stays in escrow and counts toward your purchase. If the answer is a counteroffer you can accept, adjust or walk, and if you walk the reservation returns to the account it came from.
Make sure all offers are recorded in writing, to eliminate any misunderstanding or confusion about the terms.
The promise agreement
Once the deposit is made, the contrato de promesa is drawn up. It binds both buyer and seller to a timeframe to execute the purchase contract, locks in the basic terms and gives both sides the time to gather the paperwork. Under Mexican law both parties are bound by it: if all the terms and conditions are met, neither party can back out of the sale. It should be bilingual, and the Spanish version governs.
Once it is signed, the seller contacts your bank to start the trust application, and the SRE permit is ordered.
Where the deposit goes
- USD 5,000 reservation with the offer, applied to the price once the offer is accepted.
- 20 percent of the price is the usual deposit at signing of the promise agreement, in the currency the deal closes in. Pesos and dollars are both normal, and the contract states which one governs.
- Held by the escrow company or your attorney, never by the seller personally and never by an agent. We recommend the escrow companies we work with and you are free to choose your own.
- Write in the clause that guarantees the deposit if the promissory agreement or the final sales agreement is not executed within a set period, and name who received it.
- If the seller insists it is non refundable, make sure the amount is not more than you are willing to lose.
- Refundable during the due diligence window if title, liens, permits or the condominium regime turn out different from what was represented.
Pre construction is different. You pay a reservation, then a schedule of progress payments to the developer. Ask who holds those funds, what happens if the delivery date slips, and whether the developer has a sale permit and a completion bond. Get that in the contract, not in a brochure.
Thirty to forty five days
of verifying everything
This is where a purchase is won or lost. The most important part is the review of the property at the Public Registry of the Property of the State of Quintana Roo: it must be free of any lien or encumbrance. After that, the property tax has to be up to date. Everything else below is a document someone has to produce, read and sign off on.
Title and the public registry
- Escritura pública registered in the Registro Público de la Propiedad, matching the seller identification exactly.
- Certificate of no encumbrances and no tax lien, showing no mortgage, lien, seizure or pending litigation.
- Chain of title back far enough to confirm the property was never ejido land, or was properly regularized.
- Spousal consent where the marital regime requires it, and corporate powers if the seller is a company.
Taxes, fees and utilities
- Predial paid and current, with receipts.
- HOA or maintenance statement from the administrator confirming zero debt. Unpaid fees follow the property.
- Water and electricity accounts current, and the CFE meter in the right name.
The property itself
- Uso de suelo, the land use permit, especially if you intend to rent short term.
- Condominium regime registered, with the rules, the reserve fund and the minutes of recent assemblies.
- Construction licenses and, on a house, that what is built matches what is registered. Unpermitted additions become your problem.
- Avalúo, an appraisal by an authorized valuer, required for the deed and useful as a sanity check on price.
- Survey and boundaries on land and houses, verified on the ground, not on a brochure map.
- Beachfront concession, the ZOFEMAT federal zone permit, current and transferable if the property fronts the sea.
- Inspection for humidity, roof, plumbing, electrical and air conditioning. The climate here is unforgiving.
If the seller cannot produce a document, that is information. Slow paperwork is normal in Mexico. Missing paperwork is not.
Everything checked out. Now the money moves.
Who the notary is,
and what you will pay
A notario público in Mexico is a lawyer appointed by the state with the authority to transfer property, calculate and withhold taxes, and register the deed. There is no title insurance company standing between you and the transaction, the notary is that institution, and in a purchase the buyer chooses which one.
What the notary does for you
- Reviews title, liens, powers and identity, and refuses to close if anything is wrong.
- Calculates the acquisition tax and the seller withholding, and pays both to the authorities.
- Drafts the deed, including your trust, reads it to the parties and formalizes the signatures.
- Files the deed with the public registry and issues you the registered original.
When all the closing paperwork is ready you receive a notice with the due date and the final closing costs. Then you sign the deeds, the payments are settled and the title is transferred to the bank.
Acquisition tax by municipality
This is the largest single line, and it is set locally, so the same price closes at a different cost depending on where the property is.
The closing cost, line by line
Figures are those we work with for Quintana Roo and vary by municipality, bank and property value. The notary issues the binding figure in writing before signing. Nothing here is legal or tax advice.
Mexico · Notario público
- A lawyer appointed by the state, with a limited number of offices per district.
- Holds public faith: the deed he draws up is the legal title, and he refuses to close if anything is wrong.
- Verifies title, liens, powers and identity himself, so there is no title insurance company in the middle.
- Calculates the taxes, withholds the seller’s and pays them to the authorities.
- Files the deed with the Public Registry and issues you the registered original.
- In a purchase, the buyer chooses which notary.
US and Canada · Notary public
- An administrative role, often a few hours of certification, widely available.
- Witnesses signatures and verifies identity. Does not draft your title or vouch for it.
- Title search and title insurance are done by a separate title company or lawyer.
- Taxes are your own filing problem, not the notary’s.
- Recording is handled by the title company or the closing attorney.
- The escrow or title company usually runs the closing table.
This is the single biggest structural difference in a Mexican closing, and the reason the notary fee is around 2 percent rather than a signing fee. One office does what a title company, a closing attorney and a recorder do at home. It is also why choosing the notary matters, and why we choose one we have closed with before.
On a straightforward resale it is optional. The notary already carries the legal authority, and we tell you honestly when a lawyer adds nothing to your file and when it would.
- On pre construction it is mandatory. You are signing a developer contract with progress payments, delivery dates and penalties, and none of that is reviewed by the notary until the very end.
- Always agree a fixed rate, so you pay 50 percent at the beginning of the closing process and 50 percent at the execution of your title.
- We help you decide, on your file, before you spend the money.
Two different taxes sit on the same transaction and they fall on different people. The notary calculates both, withholds the seller’s and pays them to the authorities, which is why neither side can quietly skip one.
You pay, as the buyer
Roughly 7 to 10 percent of the price, on top of the price.
- Acquisition tax, ISAI
- The municipal transfer tax, 2 to 4 percent depending on the city.
- Notary, registry, appraisal
- Around 2 percent for the notary plus the filing and the avalúo.
- Trust and SRE permit
- Around USD 2,000 at closing, then the bank fee every year.
- Escrow fee
- USD 550 to 1,000, once.
The seller pays
Withheld and paid by the notary out of the sale proceeds.
- Capital gains tax, ISR
- Broadly 25 percent of the gross price or 35 percent of the net gain, whichever their situation allows, with exemptions for qualifying residents.
- Real estate commission and its IVA
- Paid out of the sale price. It is the same whether or not you are represented, which is why representation costs you nothing.
- Certificates and arrears
- The certificates of no encumbrances, plus any outstanding predial, HOA debt and utilities.
- Declare the full price on the deed. A lower declared value shifts tax off the seller today and onto you when you sell, because your cost basis is whatever the deed says.
- Keep every factura. Improvement invoices that meet the SAT requirements reduce your own capital gains tax later. Verbal receipts do not count.
- An RFC helps on the way out. Getting one at closing is far easier than reconstructing years of invoices when you are the one selling.
Seller side figures are indicative. A seller’s actual ISR depends on residency, exemptions and documented improvements, and is calculated by the notary from their file, not from a rule of thumb.
Everyone assumes capital gains tax is the seller’s problem. It usually is, but there is one situation where a slice of it becomes yours the day you buy, and it is written into Mexican tax law rather than into the contract.
- The rule. If the appraised value of the property comes in more than 10 percent above the price declared on the deed, the difference is treated as income you received, and it is taxed to you as the buyer. Not later, when you sell. At acquisition.
- How you end up there. A seller who wants to reduce their own withholding pushes for a lower declared price. It saves them money today, and the gap between that number and the appraisal becomes your taxable income. The same manoeuvre also leaves you with an artificially low cost basis, so you pay again on the way out.
- Who is watching for it. The notary calculates it and withholds it. By then the price is already agreed and the appraisal is already ordered, so the notary is not preventing the problem, only invoicing it.
How we take it off the table, before the offer is written:
- At the offer. We hold the declared price at the real price, in writing, so no one is negotiating your tax bill on your behalf.
- Before the appraisal. We order the avalúo early and compare it with the price, so a 10 percent gap is a conversation and not a surprise at the notary.
- Across the file. We coordinate the notary, the escrow agent and your accountant on one set of numbers, and we tell you when your file genuinely needs a lawyer, which on pre construction it always does.
- At no cost to you. Representation is paid out of the seller’s commission. The lawyer is not, and paying one does not replace having someone on your side from the first number.
This is why a buyer’s broker is not the same thing as an attorney, and why you want one first. A lawyer is brought in to paper a deal whose numbers are already set: they review documents that exist, they draft and they object. Excellent work, and it happens too late to change what you are being asked to sign. A buyer’s representative is in the transaction before the offer is written, which is where this particular risk is created and where it can still be removed at no cost.
Moving funds without
a single surprise
How escrow works
Escrow is the right tool for a purchase and sale, because the seller has the security that the purchase price is with an impartial third party and you have the peace of mind that funds are not disbursed until the Escritura Pública is duly executed. The escrow agent assigns your closing a file number, holds everything against it, and can only release the money once a disbursement letter is signed by both parties.
- KYC format, know your client, used to prevent money laundering. Basic information plus passports and proof of address from both sides.
- Escrow agreement, setting out the transaction and the escrow’s role in it.
- Disbursement letter, Exhibit B, the most important of the three, because it holds the instructions to release the funds.
- Fee of USD 550 to 1,000, paid once, by the buyer.
Wires and exchange
International wires take one to three business days, and the first wire to a new beneficiary is the one that gets held for review, so build a buffer of several days before the signing date.
- Exchange rate matters. On a USD 500,000 purchase, half a percent of spread is USD 2,500. Compare your bank with a currency broker.
- Source of funds documentation is standard. Bank statements, the sale of a property, or a letter from your accountant.
- Cash is capped. Mexican law restricts cash in real estate, so plan on bank transfers for everything.
- Keep every receipt. The deed value, the notary invoices and any improvement facturas reduce your capital gains tax when you sell.
Do you need an RFC
Not to buy. You do need one if you will rent the property, invoice, or want improvement invoices to be deductible later. Getting an RFC and a Constancia de Situación Fiscal at closing is far easier than two years later, when the invoices you should have collected are gone.
Declare the full price on the deed. Declaring less used to be common and it is a bad trade: you inherit a low cost basis and pay the difference in capital gains tax on the way out.
One hour at the
notary office
What happens
The notary reads the deed aloud, confirms the parties and the terms, and both sides sign. The trust is created in the same act if you are buying through a fideicomiso. Escrow releases the funds against the disbursement letter, the seller hands over keys and access devices, and you leave with a certified copy while the original goes to the registry.
If you cannot travel
Your attorney can handle the entire purchase process, so you do not need to be in the country for every step. Grant a power of attorney, signed in Mexico before a notary, or abroad at a Mexican consulate, or before a local notary and then apostilled and translated by an authorized translator. Start it three to four weeks ahead, because the apostille always takes longer than anyone expects.
Bring these
- Passport and driver’s license, plus your immigration document if you hold residency.
- A recent utility bill showing your name and home address, and your RFC if you have one.
- Corporation documentation if you are buying through a company.
- Marital status documentation and, where required, your spouse consent.
- Names and details of your substitute beneficiaries for the trust. Decide this before the day, not at the table.
- Written confirmation from the escrow agent that funds have cleared.
Read the deed before signing day, not on it. Ask for the draft 48 hours ahead and check the spelling of your name, the surface areas, the price and the beneficiary designations. Corrections after signing require a new instrument and new fees.
Registration, delivery,
and owning it properly
The transfer is legally complete at signing, but the file is not finished until the deed is inscribed in the Public Registry of the Property. Three months after the execution of your title you contact the notary to request your original, and you always ask them to show you the boleta de registro, the document that proves the inscription.
Delivery of the unit
Do a walk through to make sure the property is handed over in good condition before you take it. When you are satisfied you sign a delivery statement, which sets the official delivery date. On pre construction this is the moment to list every defect, because the developer’s obligation to fix them is written against this document.
The first sixty days
- Collect the original title and the boleta and store digital copies somewhere your family can find them.
- Move predial, water, electricity and internet into your name, and set up the HOA account.
- Insure the property for hurricane and civil liability. Coverage here is inexpensive relative to the risk.
- Set a calendar for the annual trust fee and the predial, which is discounted when paid in January and February.
If you are going to rent it
- Register with the SAT and obtain your RFC before the first booking.
- Lodging tax applies in Quintana Roo and platforms withhold part of your tax, but the obligation to declare stays with you.
- Check the condominium rules and the land use permit again before advertising short term.
- Keep facturas for every improvement. They lower your capital gains tax when you sell, and only invoices that meet the SAT requirements count.
- Use a manager who knows the building. We recommend Playa Moments Vacation Rentals, our own rental management team, for pricing, guests, cleaning and the monthly reporting your accountant needs.
We stay with our buyers past closing. Utility transfers, the first predial payment, a property manager, a contractor, an accountant. Ask, and we will make the introduction.
What it looks like
on a calendar
These are the ranges we see, not a rule. Subject to the availability of the parties, the bank and the notary, we work every file towards signing inside 60 days, and we tell you at the start of yours whether that is realistic.
Documents to collect,
words to know
- 01Written offer to purchase, with the acceptance deadline
- 02Registered escritura pública in the seller name
- 03Certificate of no encumbrances and no tax lien
- 04Predial receipts, current year and prior
- 05HOA statement of zero debt, signed by the administrator
- 06Water and electricity accounts, paid
- 07Uso de suelo, the land use permit
- 08Condominium regime, rules and recent assembly minutes
- 09Construction licenses and as built plans
- 10Avalúo by an authorized valuer
- 11ZOFEMAT concession if the property fronts the sea
- 12Your passport, driver’s license and a recent utility bill
- 13KYC format, escrow agreement and disbursement letter
- 14Trust permit from the Ministry of Foreign Affairs
- 15Written closing cost estimate from the notary
- 16Original title, boleta de registro and signed delivery statement
- Fideicomiso
- The bank trust through which a foreigner holds residential property in the restricted zone. Established in the same document as your title, 50 years, renewable, and paid annually.
- Notario público
- A state appointed lawyer who transfers property, calculates taxes and registers the deed. Not the same as a notary in the United States.
- Escritura pública
- The public deed. Escrow funds are only disbursed once it has been duly executed.
- Boleta de registro
- The document proving your deed was inscribed in the Public Registry of the Property. Always ask to be shown it.
- Contrato de promesa
- The promissory agreement. It binds both parties to a timeframe and locks in the basic terms of the purchase.
- Acquisition tax
- The municipal transfer tax paid by the buyer: 4 percent in Tulum and Playa del Carmen, 3.3 in Cancún, 3 in Cozumel, 2 in Bacalar.
- KYC
- Know your client. The escrow format used to prevent money laundering, requiring passports and proof of address from both parties.
- Factura
- A tax valid invoice, CFDI. Keep every one for improvements, they reduce capital gains when you sell.
What buyers ask us first
Can a foreigner own property in the Riviera Maya?
Yes. The entire coast sits inside the restricted zone defined by Article 27 of the Mexican Constitution, so a foreign buyer holds residential property through a fideicomiso, a bank trust in which you are the beneficiary with full rights to use, rent, remodel, sell and pass on the property. The trust runs 50 years and is renewable.
How much is the acquisition tax?
It is set by municipality. Tulum and Playa del Carmen are 4 percent of the purchase price, Cancún 3.3 percent, Cozumel 3 percent and Bacalar 2 percent. Notary fees are around 2 percent on top of that, plus the registry, the appraisal, the certificates and your trust.
What does the fideicomiso cost?
Around USD 2,000 to set up: USD 522 for the first year of the trustee bank fee, USD 522 for the execution of the title, and MXN 15,530 for the permit from the Ministry of Foreign Affairs. The bank fee is then paid every year.
Do I need a closing attorney?
On a resale it is optional, because the notary already carries the legal authority, and we will tell you honestly whether your file needs one. On pre construction it is mandatory: the developer contract, the payment schedule and the delivery terms have to be reviewed by a lawyer before you sign. Always agree a fixed rate, 50 percent at the start and 50 percent at the execution of your title.
Is my money safe before closing?
It is in escrow. The escrow agent holds the funds against a file number and can only disburse them once the Escritura Pública has been duly executed and a disbursement letter is signed by both buyer and seller. The escrow fee is USD 550 to 1,000, once, and the buyer pays it.
Do I have to be in Mexico to close?
No. Your attorney can handle the entire purchase process. By granting a power of attorney, signed before a notary or a Mexican consulate and apostilled if signed abroad, your representative signs the closing deed on your behalf.
When do I get my original title?
Three months after the execution of your title you contact the notary public to request the original. Always ask them to show you the boleta de registro, the document confirming the inscription in the Public Registry of the Property.
Can I rent the property on Airbnb?
In most zones yes, but it depends on the land use permit and the condominium rules, and short term rental is restricted in some buildings and communities. We check both before you sign. Renting also means registering with the SAT, obtaining an RFC and paying lodging tax.
Nothing in this process should ever be a surprise.
Have someone on
your side of this
Buyer representation is paid by the seller, so it costs you nothing and it is the difference between a checklist and a closing. Tell us what you are looking at and we will tell you what to verify first.
Local 3, Col. Centro
Playa del Carmen, Q.R. 77710
