Buying off-plan in Mexico: your PROFECO rights

Who is covered

Under LFPC art. 73, property transactions fall under the law only when the suppliers are “fraccionadores, constructores, promotores and others who take part in the advice and sale to the public of homes”, or time-share suppliers. NOM-247 says the same for its scope and extends it to all natural or legal persons who market homes to the public in Mexico. A private seller is outside this regime. A developer’s agent is inside it.

Before you pay: what the developer must show

LFPC art. 73 BIS lists what the supplier must make available. For a pre-sale it must show the complete executive construction project and the scale model. In every case it must provide:

• the documents proving ownership, and information about any liens, which “must be cancelled at the time the corresponding deed is signed”;
• the seller’s authority and the supplier’s authorisation to sell;
• the state of property-tax and utility payments;
• for new buildings and pre-sales, the construction licences and permits (technical specifications, safety, land use, materials, basic services); a used building without them must say so in the contract;
• structural, architectural and installation plans, or a structural report, or a statement of why they do not exist;
• the property’s characteristics (land, built area, parking, common areas, the percentage of co-ownership);
• payment options and the total in each option; for credit, the type, a projection of the amount to pay with interest, commissions and charges;
• the deeding process and the expenses beyond the price (deed costs, taxes, appraisal, administration, credit opening, investigation);
• the conditions for cancelling.

Compare these with what you are given. Missing items are a question to put in writing.

The contract

A contract that is to be registered must (art. 73 TER) be in Spanish (it may also be in another language, but Spanish prevails in a difference), state amounts in national currency (they may also be expressed in foreign currency), set the price, the payment method and extra expenses, give start and delivery dates, describe the technical characteristics and finishes, state the deeding terms, and provide penalties that are “reciprocal and equivalent” for both sides. The supplier must also state that the home will be free of liens when the deed is signed.

Check the registration. PROFECO’s Registro Público de Contratos de Adhesión lets anyone search by the supplier’s name, trade name, registry number or contract nature. NOM-247 requires the date and number of the registration to appear in the contract (item 6). The portal shows no separate terms of use. Register search shows that a contract model is registered; it does not certify the person.

Deposits (anticipos)

NOM-247 item 4.4 requires the supplier to give a receipt for any deposit and to tell you beforehand that it counts toward the price, what rights and duties it creates, and how and when you can ask for a refund, including any penalty. A refund requested within the agreed period is without penalty. The refund is made by the same means as the payment unless both agree otherwise. If the construction project has to be changed, the supplier must notify you (item 4.4); read what follows in the norm if it affects you.

The 5-working-day cancellation right

NOM-247 item 6, XXI, requires the adhesion contract to state your right to cancel “within the 5 working days following its signature”, without prejudice to payments made. The supplier must refund what you gave, deducting “duly provable” operating costs it incurred if the parties stipulated so, within 5 to 15 working days after written notice. The norm came into force 180 calendar days after its publication on 22 March 2022.

Warranties and defects

LFPC art. 73 QUÁTER sets minimum warranties counted from actual delivery: not less than five years for structural matters and three years for waterproofing; the minimum for other elements is one year. Repairs must be free. Under art. 73 QUINTUS, if defects persist after the warranty is invoked, the supplier owes a rebate of 5 % of the repair value for minor defects and 20 % of the contract price for serious ones (those affecting structure or installations and impairing use or safety); if serious defects remain unfixed, you may ask for a replacement property or rescission with refund and interest. NOM-247 item 10 repeats the percentages.

Other points

• The supplier must deliver the property in the agreed time and to the stated specifications (art. 74).
• The buyer’s rights list in NOM-247, Appendix A, includes the right to choose the notary freely (item 14) and not to be refused or conditioned for reasons including nationality (item 13).
• For a foreign buyer in the restricted zone, the SRE permit and the trust are separate from the consumer rules; see the overview.
• For apartments, see the condominium regime.

Which professional to consult

A real-estate lawyer (profile) can compare the contract with art. 73 TER and NOM-247; the notary (notary’s role) will deed the sale. PROFECO itself handles consumer complaints.