Real estate scams to avoid in Mexico: how to protect your investment
Buying property in paradise? Here’s how to do it safely
The Riviera Maya continues to attract international buyers looking for second homes, investment properties, or a future retirement base. And while Mexico offers incredible opportunities, it’s also important to understand that real estate here operates differently than in Canada, the U.S., or Europe — and that legal safeguards depend on the buyer taking the right steps.
Unfortunately, not all buyers do.
In this guide, we’ll walk through the most common red flags and real estate scams affecting property transactions in Mexico, and share practical tips to ensure your purchase is secure and fully compliant with local law.
Red flag 1: Properties without clear title or legal possession
In some cases, sellers attempt to transfer properties:
Without a registered title
With unresolved ejido status (communal land)
With legal disputes or prior liens
How to protect yourself: Always work with a real estate attorney to perform a full title search (due diligence) and verify that the property is free of legal encumbrances and properly registered in the Public Registry of Property.
Red flag 2: No promissory contract or incomplete documentation
Verbal promises, generic receipts, or vague deposit requests are a common warning sign. If a seller or agent avoids documentation or pressures you to pay quickly “to secure the deal,” proceed with caution.
How to protect yourself:
Ensure that every transaction includes a legally drafted promissory contract (contrato de promesa de compraventa), reviewed by your attorney, with clear obligations, timelines, penalties, and conditions.
Red flag 3: Payments made directly to individuals or developers without escrow
In Mexico, property payments — especially large deposits — should be handled through secure and transparent channels. Sending funds directly to a seller’s personal account (especially abroad) exposes you to risk.
How to protect yourself:
Use an authorized escrow service, preferably one regulated and experienced with international transactions. Your lawyer can help structure disbursement instructions that protect both parties.
Red flag 4: Lack of proper fideicomiso or ownership structure
Foreigners buying near the coast (within the “restricted zone”) must purchase property via a fideicomiso (bank trust) or Mexican corporation. Failing to set this up properly can result in invalid ownership.
How to protect yourself:
Ensure that the fideicomiso is created and authorized by SRE, and that the Notary Public managing the closing is duly registered. Don’t rely on verbal assurances.
Red flag 5: Working with unlicensed or unqualified agents
In many parts of Mexico, real estate is unregulated — meaning anyone can claim to be a realtor without certification. This opens the door to misinformation, bad advice, and risky behavior.
How to protect yourself:
Work only with registered, reputable agents who collaborate with licensed attorneys and certified notaries. A good agent will never pressure you to skip legal steps and will welcome third-party verification.
Buying property in the Riviera Maya can be safe, secure, and rewarding — but only if done with proper guidance.
At BuyPlaya, we emphasize transparency and legal protection at every stage of the process. We’ve seen firsthand how problems arise when corners are cut or trust is misplaced. That’s why we always recommend working with legal professionals, verifying documents, and following formal procedures.
Protecting your investment starts with being informed — and having the right team by your side.
Aarón is a born and raised "chilango". After finishing his university studies, what started as a social service trip became his new home and where he started a family in Playa del Carmen. He enjoys the delicious food and culture of the Yucatan peninsula with his wife, daughter, and son. As a professional, he has made a career as a specialist in social networks and electronic media, helping the companies he has worked for to efficiently achieve all their objectives in the medium.