Part 2. The Purchasing Process What to expect from offer to closing
If you’re dreaming about a lifestyle change, Mexico might be closer than you think—and not just geographically. The country has become one of the top destinations for Americans looking to retire or invest in a second home abroad.
With its warm climate, rich culture, and accessible healthcare, it’s no wonder that so many are considering real estate along Mexico’s coasts. But how exactly do you purchase property in Mexico? And how can you make sure your investment is secure and straightforward? Let’s break it down.
Understanding the Purchase Process
The process of buying property in Mexico follows a clear sequence:
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Choose Your Property: This could be a beachfront condo, a golf course villa, or a quiet inland home. A knowledgeable real estate advisor can help you narrow down the best location based on your lifestyle, budget, and long-term plans.
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Negotiate the Terms: Offers are typically made in writing, and the negotiations will cover price, payment structure, and any conditions.
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Sign an Offer: Once an agreement is reached, a formal offer is signed, usually with a deposit.
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Promesa de Compraventa: This is the promissory contract or purchase agreement that outlines the full terms of the transaction. It is legally binding for both parties.
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Finalize the Transaction: The closing takes place with the formal signing of the deed before a Notario Público.
The Role of the Notario Público
Unlike in the U.S., where closing is often managed by private title companies or attorneys, Mexico requires the involvement of a Notario Público. This is a government-appointed attorney who oversees real estate transactions and holds a high legal authority.
Their responsibilities include:
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Verifying the property’s legal status
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Ensuring there is a clear and transferable title
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Calculating the applicable taxes and closing fees
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Registering the deed with the Public Registry of Property
Without the Notario’s signature and registration, your property purchase is not legally valid. This makes their role crucial to the entire transaction.
A seasoned real estate advisor can recommend reputable Notarios and help facilitate this part of the process, ensuring you work with professionals who specialize in foreign buyer transactions.
What Happens After the Purchase
Once you’ve completed your purchase, ownership responsibilities include:
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Paying Annual Property Taxes (Predial): These are surprisingly low. For instance, a $500,000 USD condo in Jalisco may only require $500–$600 USD annually.
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Maintaining Utilities: These typically include electricity, water, gas, and internet—and are generally less expensive than in the U.S.
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Complying with HOA Rules: If your property is within a gated community or development, you’ll need to follow its homeowner association guidelines and pay applicable dues.
These ongoing costs are modest compared to similar properties in the United States, making Mexico particularly attractive for retirees on a fixed income.
Closing Costs: What to Expect
It’s important to be prepared for the additional costs that come with purchasing property in Mexico. Closing costs usually range from 6% to 8% of the purchase price. These may include:
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Notario Público fees
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Property acquisition tax (typically 2% to 4%)
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Registration fees
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Trust setup and bank administration fees for foreign buyers
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Optional legal support from an independent attorney
A skilled real estate advisor will break these down for you in advance and help you budget for them appropriately. They can also coordinate with your legal and financial team to ensure everything is aligned.
Why a Trusted Advisor Makes All the Difference
If this is your first time buying property in Mexico, it pays—both financially and emotionally—to work with a real estate advisor who knows the local landscape. From navigating contracts and cultural differences to working with Notarios and banks, a seasoned professional can guide you through every step.
The result? A smoother, safer, and more enjoyable buying experience that brings you one step closer to a new chapter of coastal living, sunshine, and tranquility.
So whether you’re planning to retire full-time, purchase a seasonal home, or invest in rental property, make sure your journey begins with the right guidance. Mexico is more than just a destination—it’s a lifestyle waiting to be discovered.
Coming up next in Part 3: We’ll cover Using Escrow Services. Stay tuned!
+1 (647) 572-6011 or email: jj.mexhome.com
Whether you’re dreaming of a beachside escape or planning for your future, owning real estate here is secure—as long as you understand how the process works.