Glossary and help center

Buying or selling a property comes with words that sound complicated: fideicomiso, restricted zone, ISAI, deed, lien. Here we explain them in a few plain words, so you arrive calm at every step. This is general guidance, not legal or tax advice; your notary and accountant confirm the figures for your case. Each term links to the guide or the calculator where we go deeper.

The buying process

Fideicomiso (bank trust): The most common legal path for a foreigner to own a home or condo on the coast. An authorized Mexican bank appears as the holder of record, but you are the beneficiary and control everything: you use it, rent it, remodel it, sell it and pass it on. It lasts 50 years and is renewable; it lets you name who inherits the property, avoiding a probate proceeding. Learn more.
Restricted zone: The strip the Constitution reserves in Article 27: 100 kilometers along the borders and 50 kilometers along the coastline. Puerto Vallarta and almost all of Banderas Bay lie within it, so there a foreigner buys through a fideicomiso or a Mexican company, not directly in their own name. Learn more.
Calvo clause: An agreement by which a foreigner submits to Mexican law regarding that property. It allows buying directly, in your own name, outside the restricted zone (inland); it does not apply on the coast. Learn more.
Notary public (notario): A lawyer with public authority. In Mexico a property sale is done before them: they check legality, draft the deed, calculate and withhold taxes, and give certainty to both sides. On the coast, and if you are a foreigner, the notary sets up the fideicomiso. Learn more.
Public deed (escritura): The formal sale document, signed before a notary, that records who the owner is and on what terms. It is the basis of your right over the property. Learn more.
Public Property Registry: The government office where the notary records the deed. Once recorded, your right becomes enforceable against everyone: that is the moment the property is officially yours and safe from third parties. Learn more.
Certificate of no liens: A Public Registry document confirming the property has no debts, mortgages, seizures or hidden owner. It is requested before paying the bulk; it is the check that avoids costly surprises. Learn more.
Appraisal (avalúo): A property's value as estimated by a licensed appraiser. It is used to calculate taxes and for financing. It is not the same as a quick online estimate: a formal appraisal is signed by an authorized appraiser. Learn more.
Promissory contract (deposit): The preliminary agreement, with a deposit, that puts the price, timelines and conditions in writing before signing the deed. No verbal deals: this is where your protection begins. Learn more.
Down payment (enganche): The share of the price paid up front when there is financing; the rest is covered by the loan. A larger down payment means a smaller monthly payment. You can model it in our mortgage calculator. Learn more.

Taxes and costs

Closing costs: What you pay in addition to the price when buying: the acquisition tax, the notary fees, the appraisal and the Public Registry. As a rough rule, budget an extra 4 to 8 percent of the price; the notary gives you the exact figure before signing. You can estimate it with our calculator. Learn more.
ISAI (property acquisition tax): A municipal tax the buyer pays on acquiring the property. The percentage varies from one municipality to another, so your notary gives you the exact figure for your case. It is part of the closing costs. Learn more.
ISR on selling (income tax): The federal tax the seller pays on the gain from a sale. There is an exemption for a primary residence if certain requirements are met. The notary calculates and withholds it at signing; it is wise to estimate it beforehand. Learn more.
Primary-residence ISR exemption: A benefit that can exempt the gain from ISR when you sell your home, if you meet the requirements the law sets (that it is your primary residence, within a limit and once in a given period). The requirements and the limit are confirmed with an accountant or notary. Learn more.
Property tax (predial): The annual tax the municipality charges for owning real estate. Keep it current: it is checked when buying and when selling. Learn more.
HOA / maintenance fee: The recurring payment in a condominium for the common areas (pool, gardens, security, elevators). Always ask how much it is and what it includes before buying in a development. Learn more.

Property types and risks

Pre-construction (new build): Buying before or during construction, often at a better price and with payment plans. In exchange, you must vet the developer, the permits and the delivery dates carefully. We help you verify it before you put down a deposit. Learn more.
Ejido land: Communally owned land (ejido). It cannot be sold as private property unless it has been regularized and converted to full ownership with a deed. It is a common source of fraud: before paying a cent, confirm the land can be deeded in your name. Learn more.
Appreciation (plusvalía): The rise in a property's value over time, from the area, improvements or nearby development. It is what makes a property an investment; you can estimate a rental's return with our ROI calculator. Learn more.

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