Pagaré (Promissory Note)pah-gah-REH
A pagaré is a promissory note containing an unconditional promise by one party to pay a specific sum of money to another party. It is governed by the Ley General de Títulos y Operaciones de Crédito, Articles 170–174.
By Daniel Ortega · Last reviewed 14 November 2026
How it works
In Mexican real estate, a pagaré serves three main purposes. In seller financing, a pagaré documents the loan amount, interest rate, payment schedule and default terms. Typical 2026 seller-financing terms include 20–40 percent down payment, 8–14 percent annual interest, and 1–10 year terms. When structured with a notario público, the pagaré can be registered as a lien on the property title at the Registro Público, preventing the buyer from reselling until the debt is paid. Developers also use pagarés to document installment payment plans during pre-construction sales. Article 170 requires the pagaré to contain the word "pagaré," an unconditional promise to pay a specific sum, the payee's name, the date and place of payment, the date and place of signing, and the signer's signature. If no maturity date is stated, the pagaré is payable on demand.