How to Buy Real Estate in Mexico

1. Search and choose a property with your agent.
2. Make a written offer with price, terms and conditions.
3. Sign a purchase agreement (promesa de compraventa) and place a deposit, often 10%, in escrow.
4. Due diligence: title search, no-lien and no-debt certificates, and condominium documents.
5. Apply for the fideicomiso with a Mexican bank if the property is in the restricted zone.
6. The notario prepares the deed and verifies every document.
7. Sign at the notario's office, transfer the balance and register the deed.

From accepted offer to closing usually takes 30 to 60 days.

Foreigners cannot hold direct title within 50 km of the coast or 100 km of a border, the restricted zone that includes Puerto Vallarta and the Riviera Nayarit. Instead a Mexican bank holds title as trustee in a fideicomiso, a 50-year trust that can be renewed, while you keep every right of ownership: to live in the property, rent it, remodel it, sell it and leave it to your heirs. Setting it up requires a federal permit and a bank fee, commonly from about US$3,000 together, plus an annual trust fee of about US$500 to US$800.

A notario in Mexico is a government-appointed attorney, very different from a notary public in the US or Canada. Every property sale must close before one. The notario verifies the title, confirms the property is free of liens, drafts the deed (escritura), calculates and collects the taxes and registers the sale. The notario represents the legality of the transaction, not the buyer or the seller.

At closing, plan on about 5% to 8% of the purchase price: acquisition tax (around 2% in the Puerto Vallarta area), notario fees (about 1% to 1.5%), registry, certificates and appraisal, and the fideicomiso permit and setup if it applies. See the full closing cost breakdown.

Every year, budget for property tax (predial), the trust fee if you have a fideicomiso, HOA fees, which vary widely by building, utilities and insurance.

No. Funds are usually wired from your bank to an escrow account and released to the seller at closing. Many owners open a Mexican account afterward to pay predial, HOA fees and utilities, or to receive rental income. Some banks ask for residency to open an account and others accept a passport.

Yes, in almost every transaction in Puerto Vallarta and the Riviera Nayarit. A neutral escrow company holds the deposit and the balance and releases them only when the closing conditions are met. The buyer usually pays the escrow fee, though it is sometimes shared.

Yes. Many buyers, especially of pre-construction, close remotely. You grant a power of attorney (poder) to a trusted representative who signs for you. It must be signed before a notary and apostilled in your home country. We use video walkthroughs and live video calls so you can see the property before you commit.

It is optional. The notario verifies title at every closing, and a title insurance policy from a provider such as Stewart Title adds protection against hidden liens, past ownership disputes, fraud or registration errors. Many cross-border buyers add it on higher-value purchases. Read more about title insurance.

No. You can buy on a tourist entry. Many owners apply for temporary or permanent residency later. Residency makes banking easier and, together with an RFC and Mexican tax residency, can let you use the capital gains exemption on your home when you sell. That exemption covers up to 700,000 UDIs of the sale price and can be used once every three years. Residency also allows a one-time duty-free import of household goods (menaje de casa).

In a fideicomiso you name primary and substitute beneficiaries, and the property passes to them without a Mexican probate process. If you hold title directly or through a Mexican company, have a Mexican will (testamento) prepared by a notario. We recommend a Mexican will for every foreign owner alongside your estate plan at home.

• Title search at the public registry.
• Certificate of no liens (certificado de libertad de gravámenes).
• Certificates of no debt for predial and water.
• HOA documents: bylaws, financial statements, special assessments and recent meeting minutes.
• An appraisal (avalúo) by a certified appraiser.
• A physical inspection: structure, electrical, plumbing and air conditioning.
• Permits for any renovation, addition or new construction.

Your Coldwell Banker La Costa agent coordinates these checks as part of every purchase.