Key Real Estate Terms You Should Know
Are you thinking about buying a second home, investing in a rental property, or retiring in the Riviera Maya? Whether you’re exploring Tulum, Playa del Carmen, or Puerto Aventuras, understanding the language of real estate in Mexico is key to making informed decisions.
In this guide, we’ve compiled some of the most important real estate terms, explained in a simple and clear way. This glossary is especially helpful for foreign buyers, and it’s designed to help you feel confident throughout your journey.
Important Real Estate Terms to Know in Mexico
ISR (Income Tax)
A tax applied to the profit when selling a property. It’s based on the difference between your purchase price and your selling price. Depending on your residency status, deductions or exemptions may be available. It’s essential to get proper legal and tax advice.
Lock-Off Unit
A type of property with two separate entrances. You can rent one part and use the other for personal stays — maximizing flexibility and potential rental income.
Pre-Sale
Buying a property before it’s fully built. Typically offers lower prices and payment plans. Make sure to research the developer’s reputation.
HOA Fees (Homeowners Association Fees)
Monthly or quarterly fees paid to maintain common areas and amenities like pools, gyms, or security in a condominium or gated community.
Escrow
An independent third-party account used to hold funds during a real estate transaction. Protects both buyer and seller by ensuring money is only released once all conditions are met.
Seller’s Market
When there are more buyers than properties available, leading to higher prices and faster sales.
Buyer’s Market
When there are more properties than buyers, giving buyers more negotiating power and opportunities.
Cadastral Certificate (Cedula Catastral)
A legal document that confirms your property’s boundaries, size, and official value. Required during property registration.
Property Tax (Predial)
An annual municipal tax based on your property’s official value. It’s typically much lower than in the U.S. or Canada.
Public Registry (Registro Público)
The government office where property ownership is officially recorded.
Notary Public (Notario Público)
A specialized legal professional in Mexico who oversees and validates all real estate transactions. The notary ensures the legal transfer of ownership and files it with the Public Registry.
ROI (Return on Investment)
A way to measure how profitable your investment is. In real estate, ROI compares the income from rent or resale value to your original purchase and ownership costs.
Hybrid Property
A property that you use part-time and rent out when you’re not there. A popular option for buyers who want both lifestyle and income.
Fideicomiso (Bank Trust)
Foreigners buying within the restricted zone (like the Riviera Maya) are required to use a bank trust. The bank holds the title, but you have full rights to use, rent, or sell the property.
Due Diligence
A legal and technical review of the property before purchase. It includes checking titles, permits, legal status, and any outstanding debts. Always work with a professional to ensure this step is completed thoroughly.
Frequently Asked Questions (FAQs)
Do I need to speak Spanish to buy property in the Riviera Maya?
No, but it helps. Most real estate professionals in the area speak English. It’s important to have a trusted bilingual advisor and legal support.
Is it safe for foreigners to buy property in Mexico?
Yes, as long as you follow the legal steps. Using a fideicomiso or creating a Mexican corporation (for commercial investments) are common and secure structures.
Can I rent out my property when I’m not using it?
Absolutely. Many buyers in the Riviera Maya use their homes as vacation or long term rentals. Lock-off units and hybrid properties are especially popular for this reason.
Looking for guidance? At Moskito Real Estate, we walk with you from start to finish, offering expert support, local insights, and properties tailored to your goals.
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