15 Questions to Ask Before Buying Property in Mexico

Before you commit to any property purchase in Mexico, you should have clear answers to these 15 questions. They cover the legal, financial, and practical bases that protect American buyers. If your agent, notario, or seller can't answer them — that's a red flag.

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Legal & Title

1. Is this private property or ejido land?

Your notario must confirm through the Public Registry that the land is private property with a registered escritura. Ejido land cannot be legally sold to foreigners. This is non-negotiable.

2. Is the title clean — no liens, encumbrances, or disputes?

The notario's title search verifies this. Ask for a certificate of no liens (certificado de libertad de gravámenes) and confirmation that property taxes (predial) are current.

3. Does the seller have legal authority to sell?

If the property is in a fideicomiso, the seller (beneficiary) must authorize the sale. If selling through a power of attorney, verify it's valid and current. If there are multiple owners or heirs, all must consent.

4. Is the property in the restricted zone?

If within 50 km of the coast or 100 km of a border — yes. You'll need a fideicomiso. This applies to virtually every beach property in Mexico.

Financial

5. What are the total closing costs?

Ask for a written estimate from the notario. Expect 5%–8% of the purchase price — including acquisition tax, notario fees, fideicomiso setup, and registry recording.

6. What are the annual carrying costs?

Fideicomiso fee ($450–$800/year), predial ($100–$400/year), and HOA if applicable ($150–$400+/month for resort condos). Get exact numbers, not estimates.

7. If I rent this property, what can I realistically earn?

Ask for rental comps — actual data from similar properties in the same area, not projections. If the seller or developer quotes rental income, verify it independently through a local property manager or Airbnb search.

8. What are the tax implications — Mexico side and U.S. side?

Rental income is taxable in both countries (with Foreign Tax Credits to avoid double taxation). Selling triggers capital gains tax in Mexico. Have a cross-border CPA review your specific situation.

Property-Specific

9. What is the property's physical condition?

For resale: get an independent inspection. Mexico doesn't have a standardized home inspection system like the U.S., but qualified inspectors exist in larger markets. Check roof, plumbing, electrical, structural integrity, and salt/moisture damage (critical for beachfront).

10. What are the HOA rules (for condos)?

Can you rent short-term? Are there pet restrictions? What do the fees cover? Is the HOA well-managed and financially solvent? Ask to review the HOA bylaws and recent financial statements.

11. Is the property on municipal water and sewer?

Some properties — especially in newer developments or rural areas — rely on wells, cisterns, or septic systems. Know what you're buying and what the maintenance implications are.

12. Is there reliable internet and cell service?

Critical if you work remotely or plan to manage rentals. Test it during your visit, don't just take the seller's word.

Process & Protection

13. Is my agent AMPI-affiliated?

AMPI (Asociación Mexicana de Profesionales Inmobiliarios) agents are licensed, trained, and held to ethical standards. Anyone can call themselves a "real estate agent" in Mexico — AMPI affiliation is your quality filter.

14. Will escrow be used for the purchase funds?

All funds should go through a third-party escrow service. Never wire money directly to a seller. The notario confirms the transaction is ready before escrow releases funds.

15. Do I have an exit strategy?

How will you sell this property if you need to? What's the resale market like in this specific area? How liquid is the market? If you're buying in an emerging area with thin resale history, understand that selling may take longer.

The Quick-Reference Checklist

Print this. Bring it to every property visit. Don't sign anything until every box is checked.