Tools
Buyer’s glossary
Updated · By Chase Jordan
The short answer
The Spanish words you will hear from the notary, the bank and the HOA, explained in one line each.
- Escritura
- The title deed, signed before a notary and recorded at the Public Registry.
- Fideicomiso
- Bank trust that lets foreigners hold property in the coastal restricted zone; the bank holds title, you keep the rights.
- Zona restringida
- The strip 50 km from the coast and 100 km from the borders where foreigners need a trust.
- Cesión de derechos
- Assignment of the trust rights from seller to buyer, instead of opening a new trust (when the bank and case allow).
- Predial
- Annual municipal property tax.
- Avalúo
- Official appraisal used to calculate closing taxes.
- Promesa de compraventa
- Promissory purchase contract setting price, deposit, date and conditions before the deed.
- ISABI
- Impuesto sobre adquisición de bienes inmuebles: the municipal acquisition tax the buyer pays at closing.
- Notario público
- State-appointed attorney who verifies title, calculates and collects taxes and records the deed.
- Certificado de libertad de gravamen
- Public Registry certificate showing whether a property has liens or mortgages.
- Registro Público de la Propiedad
- Public Registry where deeds and liens are recorded.
- Cuota de mantenimiento
- Monthly HOA fee for a condominium’s shared costs.
- Régimen de condominio
- The legal structure that divides a building into private units and common areas.
- Fondo de reserva
- The HOA’s savings for major repairs.
- Poder notarial
- Power of attorney granted before a notary, letting someone sign for you.
- Apostilla
- Certification that makes a foreign public document valid in Mexico.
- ISR
- Income tax; on a sale, the seller’s capital-gains tax withheld by the notary.
- Preventa
- Pre-construction sale, before the building is finished.
- Enganche
- Down payment or deposit.
- Obra gris
- Shell construction: structure built, finishes pending.
- Zona federal marítimo terrestre
- The 20-metre federal strip along the beach that no one can own.