Property deed: complete guide for buyers

The deed is a structured instrument. It includes the details of the authorizing notary, identification of the parties (seller and buyer with their full personal details), description of the property (location, dimensions, boundaries, surface, construction, property-tax account number, cadastral key), ownership history (how the seller acquired it, previous deed number, registration date), declaration of the price and payment method, tax withholding and tax declarations.

If there is a mortgage loan, the deed is also a real-guarantee contract: it includes the amount, rate, term, mortgage conditions, cancellation rules and lender details. If the property is under a condominium regime, part of the bylaws is attached or reference is made to the instrument where it is recorded.

Before signing, the notary assembles a file that includes: a certified copy of the seller's deed, a recent lien-free certificate, a no-debt certificate for property tax, a no-debt certificate for water, a no-debt certificate for maintenance fees if it is a condominium, the parties' IDs, proof of address, RFC and, if there is a loan, the bank's instruction with the amount to disburse.

The buyer can ask the notary to verify: that the property is correctly registered, that the seller is indeed the registered owner, that there are no omitted co-owners, that the surfaces and boundaries match the cadastral plan, that the construction is declared and that there are no pending lawsuits over the property.

The notary is a public attesting officer with legal investiture. They qualify the transaction by verifying that it complies with the law and tax requirements. They withhold the seller's income tax (ISR) when applicable and remit it to the SAT. They charge the buyer's ISAI and remit it to the local treasury. They calculate registry fees and remit them. They attest to the delivery of the price or the disbursement of the loan.

Their responsibility is high: errors in deeding can affect registration and enforceability against third parties. That's why choosing a notary experienced in transactions like yours matters. Request a written quote from two or three notaries. The differences are usually in fees; ISAI, registry fees and ISR are the same because they are set by law.

Total costs are usually between 6% and 10% of the transaction value. They break down into: ISAI (Real Estate Acquisition Tax, varies by state, commonly 2%–3%), registration fees at the Public Registry, certificates (lien-free, no-debt), appraisal, notary fees (1%–2% normally) and, if there is a loan, bank fees.

ISR applies to the seller if the property was not their habitual residence or if it exceeds legal caps. The notary withholds and remits it. This is not a cost for the buyer but it's worth anticipating because it affects the net price the seller receives and, therefore, the negotiation.

On the day of signing, the parties appear at the notary's office with valid ID and the funds to cover the difference (down payment, fees, taxes not included in the loan). The notary reads the full deed aloud or delivers a final version for review. Buyers have the right to read and ask for clarifications before signing.

If there is a mortgage loan, the bank disburses the amount to the seller's account or to the notary depending on the transaction. The seller hands over keys to the buyer (or a later date is agreed if so arranged). Copies are signed and the notary delivers a simple copy immediately; the testimonio or certified copy is delivered after registration in the Public Registry.

Registration in the Public Property Registry is what grants enforceability against third parties. While the deed is in the registration process, you are the owner by contract but the Registry still shows the previous seller. That's why it's relevant to choose notaries with good follow-up on the registry process.

The registration period varies by state: 30 to 90 days is common. The notary informs you when they receive the registered testimonio and delivers it to the buyer. Keep the testimonio in a safe place, with backed-up digital copies. It is the document that proves ownership for a future sale, inheritance, lawsuit or mortgage loan on the same property.

Sometimes errors are discovered months later: a different surface area, a boundary with a neighbor who claims part of it, a lien not detected in the certificate due to a search error, an omitted co-owner, an undeclared construction. Correction may require a clarifying deed, a lawsuit or administrative action. The good news: the notary's liability is covered by professional bond and title insurance is starting to become usual in certain transactions.

When you buy in pre-sale, you first sign a private promise or rights-assignment contract with the developer. The deed is granted when the property is finished, with the condominium regime established and the bank appraisal carried out. The period between promise and deed can be 18 to 36 months, during which you pay the down payment in installments. Carefully read the clauses on developer default, delivery delays, refund of contributions and modifications to the project.