Finiquito (Final Settlement / Release)fee-nee-KEE-toh
Finiquito is a final settlement document that confirms all obligations under a contract have been fully satisfied and the parties release each other from further claims, governed by Federal Civil Code Articles 2062, 2074 and 2088.
By Daniel Ortega · Last reviewed 11 November 2026
How it works
In Mexican real estate transactions, a finiquito serves multiple purposes. When a foreign buyer purchases property on a payment plan, the seller issues a carta finiquito (settlement letter) after receiving the final payment, confirming full payment before proceeding to notarization and escritura pública. When selling a home, Mexican law increasingly requires sellers to present finiquito documents for domestic employees such as gardeners, housekeepers and maintenance staff, proving all wages and benefits have been paid; this prevents the new owner from inheriting labor liabilities. For mortgage holders, the lender issues a constancia de finiquito after the loan is paid off, required to cancel the lien at the Registro Público de la Propiedad; FOVISSSTE mortgage finiquito costs vary but typically range from MXN 4,300 to MXN 20,700 depending on the cancellation method. The finiquito accompanies proof of payment and serves as evidence that no amounts remain due.