BUYING IN PUERTO VALLARTA
Buying property in Mexico isn't necessarily complicated, but the process may be different from what you're used to. Here are the important things to know before you start.
TIME
The timeline depends largely on how title is currently held and how it will be held after the purchase.
With a fideicomiso: Allow roughly 30–60 days when a trust must be created, transferred, or dissolved.
Direct title transfer: A straightforward titled property can sometimes close in 2–3 weeks.
Most foreign buyers in Puerto Vallarta will be dealing with a fideicomiso in some form.
MONEY
Cash market: More than 95% of transactions in this market are cash purchases.
Escrow: A 10% deposit is typical, but negotiable, and is commonly deposited into escrow after the inspection period.
Closing costs: Buyers typically pay all closing costs, generally 4–7% of the purchase price.
Currency matters: Consider both the currency specified for the purchase and the currency your funds are coming from. Exchange rates, conversion costs, and transfer methods can affect the amount required.
Financing: Mortgages secured by Mexican property are generally through Mexican financial institutions, with loan amounts, qualification requirements, rates, and terms that can be significantly different from what U.S. and Canadian buyers may be accustomed to.
Discuss how the funds will be transferred before signing the offer—not when it's time to send them.
DOCUMENTS
Getting these documents together early can prevent unnecessary closing delays.
PLAN AHEAD
The notary may require documentation from your financial institution showing the initiation of the transfer, including your name and the last four digits of the sending account, the recipient's escrow account information, and the amount transferred.
It sounds simple, but getting exactly this documentation can be surprisingly difficult with some banks.
If funds are coming from a company, partnership, trust, or another account that is not in the purchaser's name, expect additional documentation establishing the relationship between the account and the buyer.
If you won't be in Puerto Vallarta to sign at closing, discuss it with the closing team well in advance. Depending on how the property will be held and the trustee bank's requirements, a Power of Attorney or another approved procedure may be available.
Making these arrangements early provides flexibility when travel plans and the final closing date don't line up.
The offer may include penalty provisions if either party fails to perform as agreed. Depending on the terms, those penalties can be substantial and may include the buyer's deposit.
Because the buyer's deposit is already held in escrow, a dispute over its release can be very different from pursuing a penalty against a seller who has no funds in escrow.
Read this section carefully, understand when the penalties apply, and discuss any changes before signing the offer.
THE PROCESS
Price, terms, currency and conditions are agreed upon.
Property inspection and document review.
Deposit is funded after the inspection period.
Title, tax and legal work; fideicomiso work when applicable.
Purchase funds and closing costs are funded and documents signed.
Keys and possession are delivered as agreed.
FOREIGN OWNERSHIP
Foreign buyers can own property in Puerto Vallarta. Because the area is within Mexico's restricted coastal zone, ownership is generally held through a Mexican bank trust called a fideicomiso.
Understanding the Fideicomiso →WHEN YOU'RE READY
Part of our job is making sure you know what's needed, what's happening next, and who is responsible for it.