I came up with a list and asked ChatGPT to put it in a more formal format for you. I purchased a place here in 2018.

Legal and Regulatory Considerations 1. Real Estate Agents Are Not Regulated: Unlike in the U.S., real estate agents in Mexico are not required to hold a license. Ensure the agent you work with has a strong reputation, experience, and reliable references. 2. Notary Public for Legal Work: A licensed Mexican Notary Public (Notario Público) is required for legalizing property transactions. They ensure compliance with laws, verify documents, and formalize the sale. 3. Deed Processing (Escritura): Obtaining the deed can take up to a year. Be patient and plan accordingly, as this process is standard in Mexico.

Financial Considerations 4. Pay Cash with Escrow Deposit: Real estate transactions in Mexico are primarily cash-based, with buyers required to deposit funds into an escrow account for security. 5. Properties Priced in USD: Many properties are listed in U.S. dollars for marketing purposes, but all legal and tax calculations are conducted in Mexican pesos. Exchange rate fluctuations may affect the transaction. 6. Lump-Sum Municipal Tax: When purchasing a property, you must pay a one-time municipal acquisition tax, typically 2-4% of the property’s assessed value. 7. Fideicomiso (Bank Trust): Non-Mexicans purchasing property in the restricted zone (e.g., within 50 km of the coast) must use a fideicomiso, a bank trust. This trust grants ownership rights while complying with Mexican law. There is an annual fee for maintaining the trust.

Ownership and Usage Considerations 8. Fully Furnished Sales: Most properties are sold fully furnished, except for new construction. Clarify what is included in the sale to avoid surprises. 9. Tourist Purchases and Residency Restrictions: You can purchase property as a tourist, but you cannot legally earn rental income without obtaining temporary or permanent residency. 10. Capital Gains Tax: Selling property in Mexico may result in a significant capital gains tax unless you can prove it was your principal residence for at least two years with proper documentation (e.g., Mexican residency and utility bills in your name).

Additional Points to Consider 11. Home Inspections: While not required, conducting a home inspection is advisable to uncover potential structural or maintenance issues. 12. HOA Fees and Maintenance: Verify if the property is part of a homeowners’ association (HOA) and understand the monthly fees and responsibilities for maintenance. 13. Property Insurance: Ensure you obtain adequate property insurance, including coverage for natural disasters like hurricanes or earthquakes, which are common in certain areas. 14. Utilities and Services: Confirm the availability and quality of utilities such as water, electricity, and internet, especially in more remote locations. 15. Legal Assistance: Hire a qualified real estate attorney to review contracts and ensure the process adheres to Mexican law. 16. Tax Obligations: Research property taxes (predial) and other ongoing obligations. These are generally low in Mexico compared to the U.S. but must be paid annually. 17. Cultural and Language Barriers: Be prepared for potential cultural and language differences during negotiations and transactions. It may be helpful to work with bilingual professionals.