Why Notaries Control Closings

Every conveyance of a fee-simple property interest in Mexico is formalised before a Notario Público. The notary is a federally licensed attorney who represents the Mexican state—not either party—and certifies that the deed complies with civil law.

Because the notary is responsible for tax collection and lien verification, investors should involve one early. A notary will typically review the draft purchase agreement, confirm seller title with the Public Registry, and prepare the escritura for signing.

Understanding ISAI and Municipal Taxes

Most municipalities impose an Impuesto Sobre Adquisición de Inmuebles (ISAI) on the property value recorded in the deed. Rates vary from 2% to 4.5%, and the notary collects the tax on behalf of the municipality.

Foreign Buyer Requirements

Properties within 50 kilometres of the coast or 100 kilometres of the border fall inside the restricted zone. Foreign buyers need either a fideicomiso (bank trust) or a Mexican entity to hold title.

The Ministry of Foreign Affairs (SRE) issues a permit for each fideicomiso. Banks charge an initial setup fee (MXN 15,000 – 25,000) and annual administration averages MXN 10,000 – 20,000.

Due Diligence Checklist

Serious investors organise a due diligence file that contains the cadastral certificate, no-lien certificate, HOA compliance letter, and proof of property tax payments (predial).

Because many sellers rely on paper archives, the notary’s office may take 1–2 weeks to retrieve certified copies from the Public Registry. Build this timeline into your closing expectations.

Funds Flow and Escrow Options

Mexico does not require escrow, and many closings rely on direct transfers to the seller or notary trust account on signature day. Cross-border investors often work with escrow providers in the United States to comply with AML requirements.

When using escrow, the notary must receive the funds release letter before recording the deed. Exchange-rate volatility means most buyers deliver pesos a few days in advance to avoid last-minute complications.