Bienes Raíces en Playa Del Carmen y Tulum Mexico | Title Search, Liens & Due Diligence Checklist for Buying in

Title, Liens, and Seller Due Diligence in Mexico: The Checklist That Prevents Bad Closings

Most real estate problems don’t come from the property itself—they come from paperwork, unpaid obligations, mismatched ownership, or missing permissions that only surface when you’re already emotionally (and financially) committed.

In Mexico, the notary is a crucial gatekeeper, but buyers still need their own due diligence—especially in resort markets where homes are often rented, owned through different structures, or managed informally for years.

This guide gives you a practical checklist to help prevent the most common “bad closing” scenarios: hidden liens, unclear title, unpaid HOA fees, unresolved seller issues, and delays that cost you months.

The Buyer’s Due Diligence Checklist (Mexico)

1) Ownership and title: who legally owns the property?

Start here. If the seller cannot prove ownership cleanly, nothing else matters.

Request and verify:

• Copy of the deed (escritura) and seller ID

• Name(s) on title match the seller(s)

• If married, confirm marital regime and whether spousal consent is required

• If multiple owners, confirm all will sign (or valid legal authority exists)

Red flags:

• “It’s in my partner’s name but I sell it”

• “We’re still waiting for the deed”

• Seller is deceased and heirs are “agreeing” informally

2) Liens and encumbrances: mortgages, embargoes, claims

A property can look perfect and still be legally “blocked.”

What you want confirmed:

• Whether there is an active mortgage (hipoteca)

• Any embargo (seizure), lawsuit annotation, or recorded claim

• Whether the property is subject to restrictions that affect transfer

Why it matters:

Even if you sign a contract, registration can be delayed or denied if the property is not transferable under current conditions.

3) Property taxes and municipal status: Predial and other local obligations

This is one of the easiest checks—and one of the most overlooked.

Ask for:

• Recent predial receipts and proof of no arrears

• If applicable, proof of payment for municipal services connected to the property

Red flags:

• “I’ll pay it later”

• Receipts don’t match the property account

• The seller can’t produce updated proof

4) HOA / condominium fees: the hidden deal-breaker

In condos and gated communities, unpaid maintenance fees can become a closing nightmare.

Ask for:

• A no-debt letter from the HOA/administration (or statement of account)

• Confirmation of any special assessments approved or pending

• Confirmation of the rules about transfer fees and required procedures

Why it matters:

Even if debts are technically personal, HOAs often require settlement before issuing documentation needed for the transfer process. If the HOA won’t cooperate, the timeline can explode.

5) The condominium regime: is the property properly “inside” the legal building structure?

For condos, this is essential.

Confirm:

• The property is under a properly established régimen de condominio

• The unit number, parking/storage rights, and common area percentages match the deed

• The building’s documentation is complete and recognized for registration purposes

Red flags:

• Seller offers “rights” but not a formal unit title

• Unit changes don’t match the deed

• Informal construction modifications without authorization

6) Seller capacity and authority: can the seller legally sign?

This is where international buyers often get surprised.

If the seller is a company:

• Verify corporate documents, legal existence, and who has signing authority

• Confirm powers are current and sufficient for sale

If the seller is using a power of attorney:

• Review the POA scope and confirm it’s valid for this transaction

• Confirm there are no limits on price, conditions, or timing

Red flags:

• “My cousin will sign for me” with no documentation

• Old POA not clearly authorizing sale

• Corporate rep can’t produce formal authority

7) Permits and use: especially important for vacation rental properties

If your plan is rental income, don’t assume the property is automatically compliant.

Depending on location and property type, you may need to confirm:

• Whether short-term rental activity is permitted under condominium rules

• Whether the property’s setup aligns with local requirements (practical and legal)

• Whether there are restrictions that affect occupancy, operations, or guest access

Red flags:

• HOA bans rentals or applies strict caps

• Property has no clear operating rules or has ongoing neighbor disputes

8) Physical reality vs. legal reality: what you see must match what you buy

Notary closings focus on legal transfer, but buyers should also ensure what’s being delivered is clearly defined.

Confirm:

• Included items (furniture/equipment) are documented

• Condition expectations (repairs, timing, deliverables) are written

• Any promised renovations are tied to deadlines and remedies

Red flags:

• Verbal promises without annexes

• “We’ll fix it after closing”

• Inventory list not prepared

The smartest move: run these checks early, before you “fall in love”

The biggest advantage you can give yourself is timing. The earlier you run due diligence, the less leverage you lose—and the less money you spend fixing avoidable issues.

A clean closing is not luck. It’s the result of verifying:

• the seller,

• the title,

• the debts,

• the regime, and

• the rules

  before you commit.

If you’re buying in a resort market, you’re not just buying a home—you’re buying into a legal and administrative ecosystem. A short checklist upfront prevents long problems later.