Escrow, Notario, Fideicomiso: A Glossary for American Buyers in Mexico

Compraventa — 'Buy-sell.' The Spanish umbrella term for a real estate purchase transaction. A contrato de compraventa is a purchase contract. A promesa de compraventa is an agreement to enter into one.

Escritura Pública — The Public Deed. This is the single most important document in the entire transaction. It is signed before a notario, records the transfer of ownership, and is filed with the Registro Público de la Propiedad as the official title document. When Americans ask 'do I own the house?' the answer is 'yes, if there is an escritura with your name on it.' The escritura is also what the notario reads aloud in Spanish at the closing appointment — a legal requirement, not a ceremony.

Notario Público — A quasi-judicial legal officer, state-appointed, who holds a unique role in the Mexican legal system. A notario is not the same thing as a US notary public. A US notary public witnesses signatures and charges $5. A Mexican notario is a fully licensed attorney with additional state-appointed authority to draft, witness, and certify real estate deeds, wills, corporate formation documents, and other significant legal instruments. There are a limited number of notarios per state, the position is hard to obtain, and they bear personal legal liability for the accuracy of the deeds they certify. The buyer chooses the notario in most Mexican states, despite what the seller's agent may tell you. Notario fees run 1.5-2% of purchase price. Mexperience's explainer on the notario is the clearest English source.

Contrato de Promesa de Compraventa — The 'promise to buy-sell' contract. The binding agreement between buyer and seller that precedes the final escritura. Signed when an offer is accepted; specifies price, closing deadline, earnest money, and penalty clauses. This is the functional equivalent of an executed US purchase agreement — the point at which real money moves into escrow and both sides are legally committed.

Arras — Earnest money / deposit. In Mexico, typically 5-10% of purchase price, paid at the signing of the promesa de compraventa. Arras penitenciales structure (buyer forfeits if they back out, seller pays double if they back out) is most common and protects foreign buyers. Not to be confused with Spanish arras, which has the same name but operates under different civil code provisions.

Avalúo — Appraisal. A property valuation done by a Mexican perito valuador (certified appraiser) and required for the notario to calculate taxes. Costs $300-700 USD. The avalúo value is what the acquisition tax (ISAI) is calculated on, so a higher avalúo means higher closing costs. This is why sellers and buyers sometimes have subtly different interests on the appraisal number.

Fideicomiso — A bank trust. Used when foreigners buy property in the Mexican Zona Restringida (restricted zone, within 50 km of coast or 100 km of border). A Mexican bank holds legal title as trustee; the foreign buyer is the fideicomisario (beneficiary) with full practical ownership rights including use, rental, sale, and inheritance. Trust term: 50 years, renewable. See our full article on the restricted zone and fideicomiso for the long version.

Fideicomitente — The person transferring the property into the trust — typically the seller at the moment of the transaction.

Fiduciario — The trustee bank holding legal title of the fideicomiso. Common ones: Scotiabank Inverlat, Banorte, BBVA México, Monex, CIBanco, Actinver.

Fideicomisario — The beneficiary of the fideicomiso — you, the American buyer.

Fideicomisario Sustituto — Substitute beneficiary. The named person who automatically takes your place if you die. Naming substitute beneficiaries at trust formation lets the property pass to heirs without Mexican probate, which is slow and expensive. Always name substitutes. Our article on Mexico property inheritance goes deeper.

Zona Restringida — The Restricted Zone. The constitutional ban on direct foreign ownership within 50 km of coast / 100 km of border, from Article 27 of the 1917 Mexican Constitution. Workaround is the fideicomiso. See the SRE's foreign investment page for official coverage.

Sociedad Mercantil / Sociedad Anónima (S.A.) — A Mexican corporation. Can hold restricted-zone property directly under specific commercial conditions, bypassing the fideicomiso requirement. Mostly used for investment portfolios with multiple units rather than single residential purchases. Involves ongoing corporate tax and reporting obligations.

RFC (Registro Federal de Contribuyentes) — Mexican tax ID number. Issued by SAT. Required by the notario to execute a real estate transfer — no RFC, no escritura. Americans can obtain an RFC as non-residents via a SAT office visit or through a Mexican attorney holding power of attorney. Takes 1-4 weeks. Our Mexico buying process guide walks through the RFC procedure.

CURP (Clave Única de Registro de Población) — Unique population registry code. A personal identifier similar to a US SSN, not specifically tax-related. Sometimes required alongside RFC for real estate transactions. Can be obtained for Americans as part of residency applications.

ISAI (Impuesto Sobre Adquisición de Inmuebles) — Acquisition Tax. The Mexican equivalent of a US transfer tax, paid by the buyer. Rate varies by state: 2% to 4.5%. Calculated on the avalúo value. Collected by the notario and remitted to the state government. This is the single largest closing cost for most Mexican buyers.

Predial — Annual property tax. Calculated on the cadastral value (typically well below market value) and paid to the municipal treasury. Extraordinarily low by US standards — typically 0.1% to 0.3% of property value, so $100-800/year on a $400,000 property. Unpaid predial attaches to the property and becomes the buyer's responsibility at closing, which is why you must request a constancia de no adeudo (no-debt certificate).

Constancia de No Adeudo — 'Certificate of no debt.' Issued by the municipal treasury confirming no outstanding predial on the property. Required at closing. Should be recent (within 30 days).

Registro Público de la Propiedad (RPP) — Public Property Registry. The state-level registry where all property deeds are recorded. Each state runs its own RPP. Your notario files the executed escritura here within 30 days of closing, and registration confirmation comes back 2-8 weeks later. Until registration is complete, your ownership is legally vulnerable to competing claims.

Folio Real — The unique registry identifier for a specific property in the RPP. Similar to a US APN (Assessor's Parcel Number) but more detailed. Your escritura will reference the folio real, and your notario will use it to pull the property's complete registry history.

Catastro / Valor Catastral — The municipal cadastral value of a property. Used for calculating predial. Typically 30-70% of true market value. Not the same as the avalúo (which is used for acquisition tax).

Corredor Inmobiliario — Real estate agent. Mexico does not have US-style buyer's agency. The corredor inmobiliario almost always represents the seller, regardless of whom they show the property to. There are no legal requirements to disclose this dual representation to foreign buyers, which is part of why gringo pricing persists. See our gringo pricing article for how to handle this.

Abogado — Lawyer / attorney. In Mexican real estate transactions, an abogado is distinct from a notario — the abogado represents you (the buyer) while the notario serves a quasi-judicial function for the state. You absolutely need your own abogado on any significant transaction. Budget $1,500-4,000 USD for real estate legal fees.

Escrow — Third-party escrow service. Common providers in Mexico include Stewart Title Mexico, First American Title Mexico, and a handful of smaller firms. Fees run 0.1-0.3% of amount escrowed plus a flat fee. Never wire your deposit directly to the seller, the agent, or the agent's personal account. A SUGEF-equivalent regulated escrow is essential. This is the number-one scam prevention tool.

Perito Valuador — Certified appraiser. The person who produces the avalúo. Licensed by the state. Fee $300-700.

Perito Topográfo — Certified surveyor. Rarely needed for urban condo purchases but essential for rural land with unclear boundaries.

Ejido — Communal land. Created under the 1917 Mexican agrarian reform, ejido land is collectively owned by a defined agrarian community (núcleo agrario). Ejido members have use rights; outside parties, including foreigners, cannot buy ejido land through any normal mechanism. Informal sales of ejido rights to foreigners exist and are essentially worthless — the 'seller' has no clear legal authority to transfer ownership. Ejido disputes are one of the most common Mexican property scams targeting foreigners, especially in Quintana Roo (Tulum area) and Baja California Sur. If the chain of title mentions ejido, walk away. Period.

Propiedad Privada / Propiedad Titulada — Private property, fully titled in the Registro Público de la Propiedad. This is what you want.

Comunal — Communal land, similar to ejido but held by indigenous communities under different legal framework. Same rule: you cannot buy it.

Zona Federal Marítimo Terrestre (ZOFEMAT) — Federal Maritime Terrestrial Zone. The first 20 meters inland from the high tide line along Mexican coasts. Cannot be owned privately — it belongs to the federal government. Can be held under concesión (long-term lease) for specific commercial uses. Residential concessions do exist in some beach areas but are legally complicated and not a substitute for titled ownership further inland.

Certificado de Libertad de Gravamen — Certificate of Freedom from Encumbrances. A registry document proving the property has no liens, mortgages, or legal claims against it. Required at closing. Issued by the Registro Público de la Propiedad for a small fee (MXN 200-500 / $12-30 USD). Must be recent — within 30 days.

Boleta Predial — Predial receipt. Proof of property tax payment. Ask to see the last 3-5 years of these to verify the seller has been paying.

Recibo de Luz / Agua — Utility receipts (electricity, water). Used to confirm no outstanding utility debts, which can transfer to the new owner in some Mexican states.

Modelo CFE — Receipts from the federal electricity commission (Comisión Federal de Electricidad / CFE). Always transfer the CFE account into your name within 30 days of closing — unpaid previous bills can create headaches.

Régimen de Propiedad en Condominio — The condominium regime. The legal framework governing apartment buildings and gated communities with shared areas. If you're buying a condo, the reglamento interno (internal rules) and the cuotas de mantenimiento (maintenance fees) are part of the documents you need to review.

Cuota de Mantenimiento — Maintenance fee (condo/HOA fee). Monthly or annual. Typical ranges: $50-400/month in most markets; higher in Cabo and upscale Riviera Maya gated communities.

Apartado — Holding deposit. A small refundable deposit ($500-3,000 USD) that takes a property off the market for a short period (typically 7-14 days) while the full promesa contract is negotiated.

Enganche — Down payment (the informal word). Equivalent to the earnest money paid at signing of the promise contract, typically 5-10% of purchase price.

Liquidación — 'Settlement' / final payment. The balance paid at closing, wired through escrow to the seller.

Gastos de Escrituración — Deed execution costs. The buyer's share of notario and registry fees, typically bundled together in the notario's final invoice.

Traslado de Dominio — Transfer of domain. Formal term for the transfer of property ownership at closing. Appears in closing documents.

Poder Notarial — Power of Attorney. A notarized document authorizing someone to act on your behalf. Common for foreign buyers who cannot physically attend closing — you notarize a poder at a Mexican consulate in the US for a small fee, and a Mexican attorney attends closing in your place. See our article on power of attorney for buying foreign property.

There are a handful of Spanish phrases that, when you hear them in a real estate context from a seller or agent, mean you should slow down significantly or walk away entirely.

• 'Basically the same as title' — describing ejido, rights-of-possession structures, or informal arrangements. No.
• 'Trust me, we can skip the notario' — absolutely not. The notario is the single most important safeguard in the entire transaction.
• 'We don't need to bother with the RFC' — you do, and the notario will require it.
• 'Just wire the deposit to my personal account, it's faster' — scam. Use escrow.
• 'The fideicomiso is not necessary for this property' — only true if the property is genuinely outside the restricted zone. Verify on a map before trusting this claim.
• 'We'll sort out the title after closing' — no. You do not close on property with open title questions.
• 'This property is ejido but we have a private agreement' — no legal weight.
• 'The annual trustee fee is included in the purchase price' — annual trustee fees cannot be prepaid. Someone is misrepresenting.

The rule of thumb: any Spanish phrase that seems to make the transaction easier or cheaper than what your attorney described is almost certainly trouble. Mexican real estate law is comprehensive and clean, but the informal shortcuts people sometimes propose are exactly the ones that end in lost money.

For more on navigating Mexican real estate transactions cleanly, see our Mexico buying process guide, our Mexico property scams article, and our hiring a bilingual lawyer abroad guide. For current listings with bilingual detail pages, browse our Mexico country page, Playa del Carmen listings, Mexico City listings, and San Miguel de Allende listings.