Buyer Checklist: Avoid Mistakes Buying Property in Mexico

Buyer Checklist: Avoid Scams & Mistakes When Buying Property in Mexico

Buying a property in the beautiful Riviera Maya is an exciting prospect, but navigating a foreign real estate market comes with unique challenges. This comprehensive guide, based on the essential 2025 Buyer Checklist, is your roadmap to protecting your investment, avoiding common scams, and ensuring a safe, secure purchase.

If you'd like this checklist as a handy PDF, click HERE and let us know your name & phone and we'll get the PDF right out to you!

The Biggest Mistake: Choosing the Wrong Agent

In Mexico, real estate can be less regulated than in the US or Canada, which makes your agent selection the most critical step. Many problems arise when buyers rely on unlicensed agents, developer representatives, or salespeople whose primary goal is to close their own deal, not find your best option.

Questions to Ask Your Potential Agent:

• Are you licensed in the state where I am buying?

• Can you show me every property, not just your own listings or projects?

• What are the comparable sales (comps) in the area, not just the list prices?

Red Flags (If your agent/seller pressures you—RUN):

• Agents or salespeople hiding better options or refusing to show outside listings.

• High-pressure tactics or pre-reservation tricks that rush you into signing or paying a deposit.

• Promising inflated "discounts" or "one-time offers" that seem too good to be true.

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Legal & Title Protection: Checks You Must Know

Never proceed without an independent real estate attorney who represents your interests—not the developer's or seller's.

Critical Legal Checks:

1. Clear Title & Developer Land Ownership: Your lawyer must verify the seller or developer holds a clean title to the property and that the land is not Ejido land (communal property). It is possible to buy ejido land but it could take years before you get a title and requires your presence in the country to constantly check up on the status. This isnt possible if you live overseas and only stay in Mexico part of the year.

2. Safe Escrow Structure: All large deposits and funds should be held in a secure, authorized escrow service—never paid directly to an individual or developer’s personal account (for resales). New & presale transactions are different. Reach out to us and we'll explain all the transaction types.

3. Pre-Construction Contract Protection: For new builds, the contract must include explicit penalties for developer delays and clear protection for your money if the project fails or is abandoned.

4. No Encumbrances: The property must be free of liens, mortgages, or outstanding tax debts.

5. Fideicomiso (Bank Trust): If buying within 50km of the coast, as in the Riviera Maya, you must acquire the property through a fideicomiso (bank trust) or a Mexican corporation. Check out more information on Fideicomiso HERE

6. Notario Público Involvement: All property transactions in Mexico must be formalized by a Notario Público (public notary), who is an experienced, licensed lawyer responsible for certifying the deed and collecting taxes.

If any of these legal foundations are missing or unclear—walk away.

How to Spot Risky Developers & Resales

Developer due diligence is critical for pre-construction purchases. Don't rely on glossy brochures—verify their track record.

Developer Due Diligence Questions:

• How many past projects have they delivered?

• What is their delivery history (i.e., have they delivered on time)?

• Have there been past legal disputes or abandoned projects?

• What is the quality of their past deliveries (e.g., waterproofing, AC installs, general workmanship)? Can we visit previous projects?

• Are there large discrepancies between Phase 1 and Phase 2 build standards?

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Resale Risk & Financial Indicators:

• Compare the price/m² with other comparable units in the area.

• Verify the absorption rate (how quickly new units are selling).

• Check confirmed resale values, not just the inflated list prices of currently available units.

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Verifying Real Rental Income (ROI)

If your purchase is for investment, you must verify the profitability before you buy.

Financial Safety & ROI Checks:

• Verify rental history and occupancy rates via platforms like AirDNA.

• Analyze the high-season and low-season rates to get a realistic average.

• Understand HOA fees and property management fees.

• Calculate the real net income after all expenses (HOA, management, cleaning, taxes).

Rental Income & Property Management:

• Confirm if short-term rental is allowed in the community.

• Ask for a clear breakdown of management fees—what is included, and what are the separate costs for cleaning and turnover?

• Compare the typical revenue split for various platforms (Airbnb, Vrbo, etc.).

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The Owner Perspective: What Nobody Tells You

One of the most valuable resources is a current owner. If possible, speak to multiple owners who are not pre-selected by the seller or developer.

Suggested Questions for Current Owners:

• What do you love most about living here?

• What surprised you after buying the property?

• Are there issues with the HOA, noise, or ongoing construction?

• Are you happy with your rental income? Are you profitable?

• Would you buy here again?

• What did nobody tell you when you bought?

If youre interested in checking out the project and community where you're thinking of buying a unit, check out our TRY BEFORE YOU BUY program.

By following this checklist and prioritizing legal due diligence, an independent attorney, and a dedicated buyer's agent, you can make a clear and confident decision when purchasing your property in the Riviera Maya.