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.
Notary fee reference
MXN 15,000 – 30,000 for MXN 3M transactions
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.
- Benchmark the ISAI brackets with the municipal treasury (tesorería).
- Confirm whether the municipality offers early-payment discounts or reduced rates for first-time buyers.
- Ensure the notary receipt (acuse) shows the amount remitted to the treasury.
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.
Restricted zone distance
50 km coastline / 100 km international border
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.
- Cadastral certificate (certificado catastral) dated within 90 days.
- Non-lien certificate (certificado de libertad de gravamen).
- Property tax receipts covering the current year.
- HOA constancia showing no outstanding fees.
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.
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