10 Costly Mistakes Foreigners Make Buying a House in Mexico

I’m sharing my experience as a foreign buyer in Mexico. This isn’t legal advice — just lessons learned from my own transaction in Michoacán. I’ve changed some identifying details to protect privacy.

When I decided to buy a house in Mexico, I thought I’d done everything right. I had a signed purchase agreement, government permission, and a move-in date. Then… the deed turned out to be outdated, one major player in this transaction died unexpectedly, the sale got delayed, and I almost paid $20,000 in cash before anyone had even verified the property correctly. It’s been a crash course in how things really work, and I want you to learn from my mistakes instead of repeating them.

First let me explain some of the important people in a real estate transaction.

Real estate agents are not always licensed and regulated in Mexico. So if you have your own agent verify their experience and qualifications. I looked for properties on my own so didn’t have a real estate agent on my side, and that’s why it’s even more important to have your own lawyer in a transaction.

Real Estate Lawyer (Abogado Inmobiliario)

Is a regular licensed attorney you hire to represent only you.

Their job is to protect your interests, not to oversee the transaction for the government.

They can:

Review contracts before you sign.
Investigate the property’s history and verify the deed.
Advise on risks, zoning, inheritance issues, or ejido (communal) land.
Negotiate terms or help set up escrow.

They are like your personal advocate in the process.

A notario público in Mexico is not the same as a notary in the U.S.

They are highly trained lawyers appointed by the government with special authority. In real estate, the notario is the one who:

Verifies ownership and checks the public registry for liens or debts.
Prepares and certifies the deed (escritura).
Collects and pays taxes/fees related to the sale.
Registers the transaction with the government.

👉 In short: no property sale in Mexico is legally valid without a notario’s involvement.

I felt very secure with the transaction of buying a house here in Mexico mostly because the seller’s agent, with a background in law, is such a highly competent person with a stellar reputation for doing things right. She had another real estate agent who was also helping and he is awesome too, though a little less experienced.

So we all signed a purchase agreement and, though it’s not very common here, the broker/agent offered the use of an escrow service where I sent the 10% deposit for the house.

This is almost always done in the U.S. and since it was my first time buying in Mexico, I was willing to pay the escrow fee instead of what some people do, which is sending the deposit directly to the seller, or having it held by the broker or agent.

In a tragic turn of events the seller’s agent/broker Liliana Elena Gonzalez Castro died unexpectedly. She was very well known and recommended in the area as an expert at real estate with a law background. In her hands I felt all the details were being looked after. She even wrote a book on buying properties in Michoacan that’s for sale on Amazon. And had a course in Udemy for learning about the subject.

The loss of her sent the transaction into a bit of a tailspin. There were people grieving and it was a very sad time.

On top of that it was only caught 5 days before closing that the sellers had furnished the agents with an outdated deed, which is no longer valid. So the process basically had to start over again.

No title company to figure that stuff out so it’s important that the notario involved had their crap together, and caught that.

So here are 10 mistakes you don’t have to make.

Mistake 1: Not Hiring Your Own Lawyer
In my case, the seller’s agent had a law background and a stellar reputation, so I felt secure. But when she was suddenly unavailable partway through, I realized how vulnerable I was without my own independent attorney. Once I hired a lawyer to represent me, everything became clearer. She was the one who guided me through the updated deed process.

Mistake 2: Skipping a Deed Check
This one nearly sank the whole deal. The sellers had given the agents an outdated escritura, which wasn’t valid anymore. We only caught it five days before closing. In the U.S. a title company would catch this, but here, it’s up to the notario. If your notario isn’t thorough, you could end up with a useless deed. Always ask for the escritura actualizada directly from the public registry.

Mistake 3: Accepting a Vague Purchase Agreement
My purchase agreement didn’t even have the right lot measurements or street number. When the deed and agreement didn’t match, it meant more paperwork and delays. Your contract should be precise: lot size, cadastral number, full legal description. If it just says “house in [neighborhood],” that’s not enough.

Mistake 4: Putting Your Deposit in the Wrong Hands
I used an escrow account, which is rare here but gave me peace of mind. Some people wire the deposit directly to the seller or let the broker hold it. That can work, but it’s riskier. Escrow isn’t cheap, but knowing a neutral third party held my 10% deposit, with written terms about how and when it would be released, was worth it. Especially with last minute changes and challenges!

Mistake 5: Not Speaking Directly to the Notario
For weeks I relied on updates from the agents. Sometimes the information was incomplete, sometimes it changed. Finally, I called a meeting directly with the notario, my lawyer and the agent, and everything became clear. If I had done that earlier, it would’ve saved me a lot of stress and confusion. Don’t be afraid to ask for a meeting or call with the notario yourself.

Mistake 6: Failing to Document Everything
WhatsApp is the lifeline of communication here. I learned to save every message, receipt, and email. Sometimes it helped me clarify what was agreed upon; other times, it proved a point when memories differed. Think of documentation as your insurance policy in case anything has to be proven in the future.

Mistake 7: Underestimating Delays
I thought I’d move in on September 1st. And technically, I did—but only because we negotiated an early possession agreement. Otherwise, I’d have been stuck, and the new tenants in that beautiful rental would have been up the creek. In Mexico, delays are common: missing paperwork, grieving families, government offices moving slowly. Always have a backup housing plan.

Mistake 8: Moving In Early Without Protection
At one point, the seller suggested I could move in early if I paid $20,000 toward the purchase price upfront. Without a notarized agreement, that would’ve been incredibly risky. Instead, we worked it out formally with the notario’s approval and everything in writing. If you move in early, make sure it’s legally documented.

Mistake 9: Forgetting the Human Side
Buying property here isn’t just paperwork—it’s also relationships. Through delays and grief, I watched how much the seller’s agent, Helio, worked to keep things moving. In Mexico, confianza—trust—is huge. If you treat people only like transactions, cooperation can stall. If you rely only on feelings of trust, you can get burned. The balance is: build relationships, but verify every promise through the notario and your lawyer.

Mistake 10: Not Being Flexible
Even experienced buyers get caught by shifting timelines, missing paperwork, or unexpected heirs. Back home, the system feels airtight. In Mexico, it’s more fluid. At one point I noticed I had no copies of some of the paperwork and documents. I was assured I would get them in the end and I chose to believe that. If you’re rigid, you’ll be frustrated. Flexibility isn’t optional here, it’s survival.

Extra Tips

Don’t rely on MLS: There’s no national MLS in Mexico. Many online listings are outdated or even fake, used just to attract leads. Photos often look nothing like the real property. See everything in person. I thought this was a given but was told by my bank when I asked them to wire funds, that some people buy property sight unseen.
Budget for extra costs: Expect 5–8% on top of the purchase price for taxes, legal fees, and notary costs. It is the buyer’s choice for the notary so you can shop around if needed.
Mortgages: Only about 10% of home purchases here involve mortgages. In other words 90% or deals are in cash. It is possible to find a mortgage in Mexico but expensive. In 2025, rates averaged around 14%.

Buying property in Mexico isn’t the same as back home. It runs on trust, but trust alone isn’t enough. You need to verify every document, hire your own lawyer, and make sure the notario does a thorough job.

That balance, human trust plus hard verification, is what turns a dream into a real home instead of a nightmare.