The Key Differences in Mexico’s Real Estate Process Explained

Buying property in Mexico, especially in the Riviera Maya, can be a fantastic opportunity, but it also comes with its own set of unique challenges. If you're used to the real estate process in the United States, Canada, or Europe, it's essential to understand how things work here.

There are many differences, ranging from cultural aspects to the way developers and real estate agents are regulated. But in this article, I’ve decided to focus on what I consider the key differences for anyone coming from abroad who is thinking about investing or buying in this region.

I also hope this information is useful for those looking to sell their property and who want a better understanding of what their potential foreign buyers may be facing.

No Centralized MLS

In Mexico, there is no centralized MLS (Multiple Listing Service) that consolidates all properties for sale. This means that, as of today, there is no single, mandatory, or reliable registry of real estate transactions.

The most important consequence of this is that we don’t have trustworthy comparables to accurately estimate the real market value of a property. Adding to the complexity, it was fairly common until recently, that part of the sale price to be paid “under the table,” meaning that many properties are officially registered at a lower value than what was actually paid for them.

All of this can be very confusing for foreign buyers who come to Mexico and find prices that don’t seem to make sense, and they have no access to a public database to verify or compare them. Sometimes, the same property is even listed on multiple platforms at different prices or with incomplete information.

This is why working with a licensed, well-connected professional agent is essential. We can provide you with real, filtered options aligned with your goals.

The Bank Trust (Fideicomiso) for Foreign Buyers

If you’re not a Mexican citizen and want to buy property within what’s called the “restricted zone” (50 km or 31 miles from the coastline, and 100 km or 62 miles from the borders), you are required to do so through a bank trust, known as a fideicomiso.

This trust is issued by a Mexican bank authorized by the Ministry of Foreign Affairs, and you are the sole beneficiary of the trust, with full rights over the property. This means you can use it, rent it, sell it, or pass it on to your heirs.

Although the concept of a fideicomiso may sound complicated to many foreign buyers, it’s actually a legal structure backed by the Mexican Constitution and the Foreign Investment Law. It was specifically created to allow foreigners to acquire property in strategic areas of the country without compromising national sovereignty.

Once you’ve selected the property and signed the initial purchase agreement, the trust must be formally requested through an authorized bank. This process is usually handled by the notary (notario).

The bank acts as the fiduciary (or fiduciario): the legal entity that holds the title to the property, but you are the trust’s beneficiary. The trust is established before a notary public and registered in the Public Property Registry. I go into detail here because I believe it’s important to reinforce the legality and formal nature of this process.

It’s also important to know that the property does not become part of the bank’s assets, and it cannot be transferred or sold without the trustee’s (that is, your) authorization.

Setting up the trust usually takes between 4 to 8 weeks, depending on the bank and the notary involved. This process carries a one-time setup cost of around $2,000 to $2,500 USD, which generally includes the first year’s fee.

After that, there’s an annual maintenance fee of approximately $500 USD. These amounts are separate from other closing costs such as notary fees, public registry inscription, and taxes, which usually amount to between 5% and 10% of the total property value.

Buying with a mortgage is not that common

Most real estate transactions in the Riviera Maya, especially those involving foreign buyers, are cash purchases. While mortgage loans do exist in Mexico, they’re not as accessible for foreigners.

One major reason why financing is not as common in this region is that mortgage interest rates in Mexico tend to be higher than in other countries. For this reason, many buyers choose to finance their purchase from their home country, either by taking out a second mortgage or leveraging home equity on an existing property, or they simply transfer their funds.

To give you a general idea of the financing options available for foreign buyers, here are some average figures (based on what’s currently available in April 2025):

• A down payment of 20% to 25% is typically required, plus closing costs.

• Minimum credit score: 680.

• Income requirements depend on the loan amount. For example, a monthly income of approximately $5,000 USD is needed to qualify for a $200,000 USD property.

• Fixed interest rates range between 10% and 12% over a 20-year term.

• Basic application requirements: official ID, proof of income, credit report, title deed, and property history.

Some developers offer direct financing plans. In any case, it’s extremely important to have a trusted lawyer or financial advisor review the terms to ensure you’re making an informed decision.

Escrow is optional

Unlike in other countries, escrow services are not mandatory, or even that common, in Mexico. However, many foreign buyers, especially those from the U.S. or Canada, are used to handling real estate transactions through escrow, as it adds an extra layer of transparency and security.

Here’s how escrow typically works: the buyer deposits the funds into a neutral third-party account (managed by an escrow company), and the funds are held until all the conditions outlined in the purchase agreement are met. Once both parties fulfill their obligations (such as signing before a notary or providing all necessary documentation) the escrow company releases the funds to the seller. This protects both the buyer and the seller and helps prevent funds from being transferred before legal certainty is established.

The challenge is that escrow is not standard practice in Mexico. Here, it’s more common for the buyer to make an initial deposit directly to the seller or developer, with the balance paid at closing when the public deed is signed before a notary. Everything typically happens on the same day, with no third party managing the funds.

This can lead to tension when the buyer wants to use escrow and the seller is not familiar with the process. I’ve seen cases where the seller interprets this as a sign of distrust or thinks something suspicious is going on, when in reality, it’s simply a common international practice that hasn’t been widely adopted in Mexico.

From my point of view, escrow is an excellent tool that builds trust, especially in long-distance transactions or when working with investors unfamiliar with Mexico’s legal system.

That’s why, if a buyer wants to use escrow, it’s essential to communicate this from the start of the negotiation. As an agent, I make sure the seller’s representative fully understands what this means, especially because the escrow payment is not released immediately—it may take 24 to 48 hours after the contractual conditions have been fulfilled.

In addition to working with a professional real estate advisor, it’s crucial that the entire transaction is reviewed by a lawyer to legally protect both parties’ interests.

Regulation of real estate agents

In Mexico, not all real estate agents are licensed or formally trained—even though, in theory, it should be a requirement. This is particularly relevant in states like Quintana Roo, where there is a Real Estate Services Law in place.

This law states that anyone offering brokerage or real estate advisory services must hold a valid license (referred to as a "matrícula") issued by the state’s Ministry of Sustainable Urban Territorial Development (SEDETUS). To obtain this license, an agent must:

• Complete an accredited training course.

• Submit legal and tax documentation.

• Register in the State Registry of Real Estate Professionals.

• Renew their license periodically.

Despite the efforts of the Real Estate Affairs Directorate, which promotes the regulation of real estate services through license issuance, in practice, enforcement is weak. A lack of oversight and clearly defined consequences has made the law feel more like a recommendation than an actual obligation. As a result, virtually anyone can advertise themselves as a “real estate advisor,” regardless of whether they have the knowledge or ethics to properly represent buyers or sellers.

In other countries, like the U.S. or Canada, agents must be registered with a professional association (like the NAR in the U.S. or CREA in Canada), pass certification exams, complete mandatory continuing education, and face sanctions or loss of license for unethical or negligent behavior. This protects consumers and raises industry standards.

Personally, I believe that Mexico is slowly moving in that direction: a system that ensures clients receive the best possible service. But the current reality is that being certified and licensed does not automatically translate into more prestige or better opportunities within the industry. Still, it makes a big difference in the quality of service delivered to the client. And as a buyer or investor, you can help professionalize the sector by choosing to work only with registered, properly accredited agents.

Conclusion

To avoid frustration and successfully navigate the buying process in the Riviera Maya, you need to understand how it works and, more importantly, how it differs from the systems in other countries. From the lack of a centralized MLS to the requirement of a fideicomiso for foreigners, to the differences in financing options, the optional use of escrow, and the weak regulatory framework, each of these elements directly impacts your experience as a buyer.

Being well-informed and supported by a professional, trustworthy advisor will make all the difference. Look for someone who can guide you with clarity, honesty, and real-world expertise, someone who will provide the confidence and certainty you need every step of the way and that really know Mexico's real estate process.

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