Riviera Maya real estate glossary

Impuesto Sobre la Renta applied to the profit from selling property. Sellers generally pay either a percentage of the gain or a flat percentage of the sale price, whichever the notario calculates as applicable. Residents selling a primary home may qualify for an exemption when they can document residency and comply with the deduction rules.

The legal condominium regime that divides a building or development into privately owned units plus shared common areas. The regime document sets ownership percentages, voting rights, maintenance obligations and rules on short-term rentals.

Communally held agrarian land granted to a community after the Mexican Revolution. Ejido parcels cannot be sold as private property until they are formally regularised (dominio pleno). Buying unregularised ejido land is one of the most common sources of title disputes in the Riviera Maya.

The public deed that evidences ownership. It is prepared and signed before a notario público and then registered with the Public Registry of Property. Until the escritura is registered, ownership is not fully enforceable against third parties.

A Mexican bank trust that allows foreign buyers to hold residential property inside the restricted zone (within 50 km of the coast or 100 km of a border). A Mexican bank holds legal title as trustee while the buyer, as beneficiary, keeps full rights to use, renovate, rent, sell or bequeath the property. Trusts run for 50 years and are renewable.

The recurring fee paid by condominium owners for security, pools, landscaping, insurance, staff and reserves. In the Riviera Maya it is commonly quoted per square metre per month in Mexican pesos or US dollars, and it is a major factor in net rental yield.

A government-appointed attorney with exclusive authority to formalise real-estate transfers in Mexico. The notario verifies title, checks for liens and unpaid taxes, calculates and withholds taxes, and records the deed in the Public Registry of Property. Their involvement is mandatory, not optional.

Buying a unit before or during construction, usually through a promise-to-purchase agreement with staged payments. Prices are typically lower than at delivery, but buyers should verify the developer's permits, land title, delivery timeline and what happens to payments if the project is delayed.

The annual municipal property tax in Mexico. Rates are low compared with the United States and Canada, and most municipalities offer a discount for paying in January or February. The receipt is commonly requested at closing to prove the account is current.

Registro Federal de Contribuyentes, the Mexican tax identification number. Owners need an RFC to invoice rental income, to claim deductions on a future sale, and to access the primary-residence capital-gains exemption.