Escrow and title insurance in Mexico: what protects a buyer

By Lic. Pati Claudia Galarza, attorney (Licenciada en Derecho), Cédula Profesional 15176510 · Published October 18, 2026 · Español

Mexican law does not require an escrow account when you buy property. A purchase in Baja California is closed before a notario público, and the buyer's protection comes from four things working together: the notario's legal checks, the registry certificate from the RPPC, the aviso preventivo that reserves your place in the registry, and your own attorney's review before you pay. Escrow and title insurance are optional private tools you can add on top. Galarza Legal never receives, holds or moves client money, and we do not act as escrow.

What the notario público does

In Mexico a notario público is a lawyer appointed by the state government to give public faith to deeds. In Baja California, only someone holding a patent issued by the state Executive may act as a notary (Ley del Notariado para el Estado de Baja California, art. 13).

For a property deed, the notary must list the seller's title, after examining it, and cite its registration in the Registro Público de la Propiedad y del Comercio (RPPC), or state why it is not yet registered (art. 121, fr. III). The notary may only give the deed final authorization once it has been signed and the taxes due have been shown to be paid (art. 129). On a sale, the notary also calculates and pays the seller's provisional income tax for the operation (Ley del Impuesto sobre la Renta, art. 126). At the parties' request the notary can also handle registration of the deed (Ley del Notariado, art. 11, fr. VIII).

What the notary does not do is act as your advocate. The notary is a neutral public official for the deed. Negotiating the terms, checking the deal before you sign a promise contract and deciding when it is safe to pay are the job of your own attorney.

The RPPC certificate and the aviso preventivo

The RPPC issues certificates on whether liens (gravámenes) exist or do not exist on a property. These certificates must include the recorded entries, any preventive annotations and any documents filed that create a real right or a limitation of ownership (Ley del Registro Público de la Propiedad y de Comercio del Estado de Baja California, art. 42). The law gives the registry up to five business days to issue a certificate (art. 44). This is the document people call the certificado de libertad de gravámenes.

The Código Civil para el Estado de Baja California adds a protection that buyers rarely hear about. When a deed transferring property is going to be signed, the notary, at the request of either party, must ask the RPPC for that certificate, and the request itself works as a first aviso preventivo. It is noted on the property's record and lasts 30 calendar days (art. 2885). Once the deed is signed, the notary gives a second aviso preventivo. If the deed is presented for registration within 90 calendar days of signing, it takes effect against third parties from the date of the aviso (art. 2885). In plain terms: a lien or sale recorded by someone else in that window does not jump ahead of you. The notary may give these avisos in writing or electronically (Ley del Registro Público, art. 54).

Registration matters because priority between rights over the same property is set by the order in which they are presented to the registry, whatever date the documents bear (Ley del Registro Público, art. 23). To register a transfer, the deed must be accompanied by, among other things, the catastral survey (deslinde catastral), an appraisal (avalúo), the property acquisition tax (ISAI) return and a certificate of no tax liens (art. 38).

Where a deposit can sit

Many deals start with a deposit when the parties sign a contrato de promesa (promise to buy and sell). Under Baja California law a promise contract must be in writing, contain the essential terms of the final sale and be limited to a set time (Código Civil, art. 2120). If the seller refuses to sign the deed, a judge can sign in their place, unless the property has already passed to a third party who paid for it in good faith; in that case the promise is left without effect and the buyer is limited to a claim for damages (art. 2121). A promise contract is a useful commitment, but it does not lock the property up and it does not protect a deposit paid straight to the seller.

Options people use to hold a deposit or the price until closing:

A trust (fideicomiso) with an institution authorized to act as fiduciary. In a trust, property or money is transferred to the fiduciary for specific lawful purposes, and only institutions expressly authorized by law may act as fiduciaries (Ley General de Títulos y Operaciones de Crédito, arts. 381 and 385). The trust instructions say exactly when the money goes to the seller or back to the buyer.
An escrow service from a bank or other financial institution, under a written contract that names who holds the money, who supervises that institution, and the documents that release it.
Payment at the notary's office. A Baja California notary may receive the purchase price by certified check or cashier's check made out to the seller (or other creditor), and may receive the money for taxes and fees on the deed; the deposit is governed by the contract the notary signs with the party (Ley del Notariado, art. 12).

Whichever you use, the money moves between you, the institution or notary and the seller. Your attorney reviews the release conditions; the attorney does not hold the funds.

Title insurance

Title insurance is an optional private product. Mexican law does not require it for a purchase, and it does not replace the registry certificate or a legal review. If you are offered a policy, ask who issues it, whether that insurer is authorized (in Mexico an insurance company needs federal authorization from the Comisión Nacional de Seguros y Fianzas, Ley de Instituciones de Seguros y de Fianzas, art. 11), what the exclusions are, and whether it covers a property held through a fideicomiso. Prices vary by insurer and value, so ask for a written quote.

What your own attorney checks before you pay

A current RPPC certificate of liens and the chain of title back through the registry record.
That the person selling is the owner on record, or, for a property in a fideicomiso, the current beneficiary, and that any spouse or co-owner who must sign is part of the deal.
That the catastral description, area and boundaries match the registry record and what you saw on site.
Property tax (predial) and water accounts with no balance owed.
The promise contract: a set closing date, what happens to the deposit if either side backs out, and who holds it.
Which notary will close, and that the first aviso preventivo is requested when the certificate is ordered.
How the price will be paid. Mexican law prohibits paying for a property in cash at or above 8,025 times the daily UMA value (Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita, art. 32, fr. I). See our post on cash limits for the details.

Red flags

Being asked to pay a deposit in cash, or to a seller's agent personally, instead of to the seller's own account, a trust or the notary.
Paying anything before the title and the lien certificate have been reviewed.
A promise contract with no closing date, or a deposit that is non-refundable whatever the title review finds.
A seller who is not the owner on record and cannot show a power of attorney or the trust documents.
Pressure to skip the notary or to sign a private sale document instead of a deed.

Important: Galarza Legal never receives, holds or moves money for clients or third parties. You pay the seller, the notary, the bank, the appraiser and the registry directly.

How Galarza Legal can help

We act as the buyer's own attorney in Baja California: we review the title, the RPPC certificate and the seller's documents, draft or review the promise contract and the deposit terms, coordinate with the notary you choose and with the trust bank when there is a fideicomiso, and tell you in writing what we found before you pay.

Frequently asked questions

Is escrow required to buy property in Mexico?

No. Mexican law does not require escrow. The sale is closed before a notario público. Escrow through a bank or a trust with an authorized fiduciary is an option the parties can agree on.

What is the aviso preventivo?

Under the Baja California Civil Code (art. 2885), the notary's request for the lien certificate works as a first aviso preventivo for 30 calendar days, and after signing the notary gives a second aviso. If the deed is presented for registration within 90 calendar days of signing, it takes effect against third parties from the date of the aviso.

Does the notary protect the buyer?

The notary checks the title and its registration, confirms taxes are paid before authorizing the deed and can handle registration, but acts as a neutral official. Your own attorney is the one who reviews the deal for you before you pay.

Do I need title insurance in Mexico?

It is not required. It is an optional private policy. If you buy one, check who issues it, whether the insurer is authorized, the exclusions and whether it covers a fideicomiso.

Can Galarza Legal hold my deposit?

No. Galarza Legal never receives, holds or moves client money. Deposits go to the seller, a trust with an authorized institution, a bank escrow service or the notary, as agreed in writing.

General information about Mexican law as of the date shown; not advice on a specific case. Every figure is an estimate.