Real estate glossary
The words worth understanding.
Plain-language definitions for clearer conversations with developers, banks, notaries and authorities in Mexico.
38 terms explained- ContractsAdhesion contract
A pre-drafted agreement offered by a supplier on standardized terms. Mexican residential real-estate contracts covered by NOM-247 must meet minimum requirements and, when applicable, be registered with PROFECO.
- TransactionAppraisal
A professional opinion of a property’s value for a stated purpose. Market, cadastral and tax values may differ.
- DocumentationApostille
Certification used to authenticate certain public documents issued in another Hague Convention country for recognition in Mexico. It does not replace a required translation.
- Foreign buyerBeneficiary or fideicomisario
The person who receives the use and enjoyment rights established by a trust. A foreign buyer in Mexico’s restricted zone commonly occupies this role.
Understand the bank trust
- RegistryCadastral registry
The administrative system that identifies, measures and values parcels through location, area, cadastral reference and construction data. It is distinct from the Public Property Registry.
- Due diligenceCertificate of no liens
A registry certificate showing recorded liens, limitations or annotations affecting a property. It is essential evidence, but does not replace a full title review.
View buyer checklist- CondominiumCommon area
Space or infrastructure owned or used collectively by condominium owners, such as internal roads, gardens or amenities. Rules, maintenance and fees should be reviewed before purchase.
- CondominiumCondominium bylaws
Rules governing construction, coexistence, common areas, administration, penalties and fees. Read them before buying, particularly if you plan to build or rent.
- CondominiumCondominium regime
A legal structure combining individually owned units with jointly owned common property. Its founding deed, ownership percentages, bylaws and fees directly affect the buyer.
- TransactionDeed or escritura pública
A public instrument authorized by a Mexican notary that formalizes a legal act, including a property transfer. It generally must be recorded to be effective against third parties.
- PlanningDensity
A planning control that limits development intensity, such as homes or inhabitants per unit of area. It must be checked for the specific parcel and intended project.
- ProjectDeveloper
The person or entity responsible for dividing, servicing, building or marketing a real-estate project under applicable approvals and obligations.
- Due diligenceDue diligence
A coordinated review of the property, seller, permits, services, contracts, costs and risks before committing to a purchase. It is a process, not one document or an absolute guarantee.
Open buyer checklist
- RegistryElectronic property folio
The registry identifier that holds the recorded legal history of a property, including ownership, transfers, liens and annotations.
- PermitsEnvironmental Impact Statement (MIA)
A study submitted to the environmental authority to assess impacts and mitigation measures for certain works. Whether it is required depends on the project and location.
- Foreign buyerFideicomiso
A legal trust through which a Mexican bank holds property rights for the purposes and beneficiaries stated in the agreement. A foreign buyer in the restricted zone requires authorization from the Ministry of Foreign Affairs.
Read the complete guide- InfrastructureFeasibility letter
A statement that a utility may be technically or administratively available. It does not necessarily mean the network is built, reaches the lot or includes a paid individual connection.
- Foreign buyerFiduciary bank
The authorized Mexican credit institution that holds title in a fideicomiso and administers it under the agreement and applicable law.
- InfrastructureInfrastructure
Works and networks supporting a community, such as roads, power, water, storm drainage and lighting. Verify what is complete, authorized and formally delivered.
- Marketing labelInvestment land
A commercial description of the buyer’s intended return or the project’s stage. It is not a legal category and does not guarantee appreciation, services or a delivery date.
- InvestmentLand appreciation
An increase in a property’s value over time caused by market, location, infrastructure and demand factors.
- PlanningLand-use license
A municipal act confirming that a proposed use or activity is compatible with rules for the parcel. It is not a building permit and does not automatically authorize every business activity.
Compare land uses- Due diligenceLien
A charge or right affecting property, such as a mortgage, attachment or easement. It may limit or condition a sale.
- PlanningMixed land use
A designation that may allow a regulated combination of residential and commercial activity. It does not mean every business, scale or operating schedule is permitted.
Read the land-use guide
- TransactionNotary public
A specially authorized Mexican legal professional who formalizes the transaction, verifies requirements and handles certain taxes. This role is substantially different from a notary public in the United States or Canada.
- CondominiumPrivate lot
An exclusively owned unit within a condominium regime, usually accompanied by an undivided percentage in common property.
- ContractsPromise to purchase
An agreement requiring the parties to enter into a future purchase under defined terms. It should identify the property, price, payments, closing conditions, defaults and refunds.
- TaxesProperty tax or predial
A recurring municipal tax associated with real property. Confirm that it is current and understand its assessed basis before closing.
- RegistryPublic Property Registry
The institution that gives public notice to recorded legal acts affecting real property. A transaction must be properly reviewed and recorded to protect its effect against third parties.
- PlanningResidential land use
A use primarily intended for housing, subject to controls such as density, site coverage, height, setbacks and parcel-specific rules.
Read about residential use- Foreign buyerRestricted zone
The constitutional area extending 100 kilometers from borders and 50 kilometers from beaches where foreigners may not hold direct title to land and waters. Residential acquisitions are commonly structured through a fideicomiso.
View foreign buyer guide- PlanningRight of way
Land reserved for circulation or infrastructure such as roads, power lines or pipelines. It may restrict where and how construction can occur.
- Marketing labelSemi-serviced land
A commercial description suggesting partial infrastructure, without a uniform legal meaning. Translate it into a verifiable list of works, utilities, dates and responsible parties.
Compare infrastructure levels- Marketing labelServiced land
A description suggesting completed urban infrastructure. Confirm the actual scope through approvals, completed works, formal acceptance and connection terms.
Review infrastructure criteria- InfrastructureServices at the lot line
A commercial phrase suggesting utility networks or connection points reach the lot boundary. Confirm which utilities are included, whether they operate and who pays for individual connection.
- MeasurementTitle area
The property area described in the recorded title. Compare it with surveys, cadastral records and physical boundaries when measurements differ or are uncertain.
- ContractsTransfer of rights
An act through which a person assigns contractual or legal rights to another. It does not necessarily transfer registered ownership of real property.
- InfrastructureUrban amenities
Community facilities such as green space, education, health, recreation or security. They are distinct from utilities serving an individual lot.
Reference sources
These definitions simplify general concepts. Consult current law and confirm how each term applies with the appropriate professional.
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