The Full Buyer Due Diligence Checklist
for Mexico Real Estate

Buying property in Mexico involves legal structures that most North American buyers have never encountered. Fideicomisos, ejido conversions, regime incorporations, notarios — each is unfamiliar territory. The gaps in that familiarity are where problems live.

What follows is the complete list of what to verify before closing. Each item should be confirmed in writing by your attorney, with citations to the underlying documents or registry records. "I believe it's fine" is not confirmation.

1. Title and Ownership

• Pull the current title from the Public Registry of Property (Registro Público de la Propiedad). Confirm the seller is the named owner.
• Confirm no liens, encumbrances, or unpaid mortgages are attached to the title.
• Confirm there are no pending legal actions or disputes on record against the property.
• If the property is in the restricted zone (within 50km of the coast), confirm it is held in a fideicomiso, not direct ownership — direct foreign ownership in the restricted zone is not permitted.

2. The Fideicomiso (Bank Trust)

• Confirm the trust is an individual trust — not a master trust where the developer holds title.
• Confirm the trust is current on annual fees and has not lapsed.
• Identify the trustee bank. Confirm it is a major Mexican bank in good standing.
• Review the trust documents for the term (typically 50 years, renewable), your rights as beneficiary, and any restrictions.
• Confirm the transfer of beneficiary rights is straightforward — some trusts have unusual transfer provisions.

3. Ejido History

• Ask your attorney: "Does this land have any ejido history?" Get the answer in writing.
• If there is ejido history, check the Registro Agrario Nacional (separate from the Public Registry) to confirm the land was properly privatized.
• Confirm the PROCEDE conversion process was completed in full, with proper ejido assembly approval.
• A clean title at the Public Registry does not automatically confirm clean ejido status at the Registro Agrario Nacional.

4. Land Ownership

• Confirm the seller owns both the structure and the land it sits on. If not, ask why.
• If the land is on a lease, walk away. See the separate article on leased land.
• Confirm there are no easements or rights-of-way crossing the property that would affect use or value.

5. Regime and Deed

• Confirm the condominium regime has been incorporated and registered at the Public Registry.
• Confirm an individual escritura (deed) for the specific unit has been issued — not just the master deed for the building.
• If the regime is not yet incorporated, get a contractual commitment from the seller on when it will be completed, with financial consequences for delay.

6. HOA and Ongoing Fees

• Confirm the HOA is incorporated as an asociación civil with a registered RFC.
• Obtain the current fee schedule and the last two years of financial statements.
• Confirm there are no outstanding HOA arrears owed by the current owner that would become your liability at closing.
• Ask about pending special assessments — large one-time charges that may be voted on shortly after you take ownership.
• Inspect common areas for deferred maintenance, which often signals an underfunded or mismanaged HOA.

7. Taxes and Fees at Closing

• Understand the acquisition tax (ISAI) you will owe at closing — typically 2% of the transaction value, paid by the buyer.
• Confirm any outstanding property tax (predial) owed by the seller will be settled before or at closing.
• Confirm notario fees, trust transfer fees, and any developer transfer fees are clearly specified in the purchase agreement.
• Ask your attorney for a full closing cost estimate before you sign the purchase agreement.

8. Purchase Agreement Terms

• Have your own attorney — not the developer's attorney — review the purchase agreement before you sign.
• Confirm earnest money is held in escrow, not paid directly to the seller or developer. Get the escrow terms in writing.
• Confirm the conditions under which earnest money is refundable — specifically if title problems are discovered during due diligence.
• For pre-construction: confirm the completion date, penalty provisions for delay, and conditions for cancellation.

9. Exit Planning

• Understand the capital gains tax implications before you buy. Mexico taxes gains at sale; most foreign buyers are not eligible for the primary residence exemption.
• Keep all receipts for capital improvements — in pesos, dated — as they increase your cost basis and reduce taxable gain.
• Get a cross-border accountant involved before closing, not at the point of sale.

The One Rule

Nothing on this list is covered by having a notario at closing. The notario verifies that the transaction is legal. Your attorney verifies that the transaction is right for you. You need both. Hire your own attorney — ideally one referred by prior buyers rather than by the developer or the seller's side — and have them work through this list before any money changes hands.