Intelligence Glossary

Constitutional injunction used to challenge government acts. In real estate, amparos are filed against development permits, ejido conversions, or environmental authorizations. An active amparo on a project creates title risk until resolved.

Asociacion Mexicana de Profesionales Inmobiliarios. Mexico's national real estate association. AMPI membership requires professional training and ethical code adherence but is voluntary. Not all legitimate agents are AMPI members; some AMPI members engage in misconduct.

Official property appraisal conducted by a licensed valuator. Required for mortgage financing and used to calculate transfer taxes. Avaluo values frequently differ from actual market prices, creating a gap exploited in tax planning.

Spanish term for real estate or real property. Used interchangeably with "inmuebles" in legal contexts. Literally translates to "rooted goods."

Capitalization rate. Net operating income divided by asset value. In Riviera Maya, cap rates range from 4-8% for STR-focused properties, compressed by high appreciation expectations. Compare against after-tax yield for actual return modeling.

Certified International Property Specialist. NAR designation for agents specializing in cross-border transactions. Signals familiarity with foreign buyer issues including fideicomiso, restricted zones, and currency considerations.

Comision Nacional para el Conocimiento y Uso de la Biodiversidad. Federal agency tracking biodiversity including sargassum. Provides satellite monitoring data used in Riviera Audit's sargassum tracker.

Legal structure governing multi-unit properties. Establishes individual unit ownership plus undivided interest in common areas. Must be registered with the public registry. Quality of condominium documents varies enormously.

Promise to purchase contract. Preliminary agreement establishing terms before formal closing. Creates binding obligations but is not title transfer. Deposit requirements, cancellation clauses, and delivery timelines must be carefully reviewed.

Real estate developer. Ranges from institutional groups delivering hundreds of units to small operators building single boutique projects. Track record verification before any pre-sale commitment is essential.

Official boundary demarcation of a property. Required for title registration. Deslinde certificates can conflict with physical boundaries, neighboring properties, or federal maritime zone classifications. Verify with independent surveyor.

Communally held agricultural land established under post-revolutionary land reform. Cannot be legally sold to private buyers without completing conversion through PROCEDE/SEDATU. Ejido exposure is the primary title risk in Tulum and emerging corridor zones.

Public deed. The notarized document that legally transfers real property ownership. Must be registered with the Public Property Registry to be enforceable against third parties. Absence of registered escritura is a critical red flag.

Third-party held deposit account protecting buyer funds until conditions are met. Not legally required in Mexico but considered best practice for pre-sale purchases. Verify the escrow holder is an independent institution, not the developer or their affiliate.

FinCEN Form 114 (Foreign Bank Account Report). Required for US persons with foreign financial accounts exceeding $10,000 at any point during the year. Mexican bank trust accounts holding property may trigger FBAR reporting. Penalties for non-filing start at $10,000 per violation.

The 20-meter strip above the high-tide line on all Mexican coastlines. Federal property that cannot be privately owned. Beach access rights are granted through concessions. Properties claiming beach frontage ownership may be misrepresenting the legal structure.

Bank trust structure enabling foreign nationals to hold real property within Mexico's restricted zones (50km from coastlines, 100km from borders). The foreign buyer is the beneficial owner with all economic rights; the bank holds nominal legal title. Costs approximately $500-800/year in trust fees.

Registration number assigned to a property in the Public Property Registry. Unique identifier used in title searches. Any property lacking a folio real registration has significant title risk.

IRS Statement of Foreign Financial Assets. Required for US taxpayers with specified foreign financial assets above thresholds ($50,000 single, $100,000 married). Fideicomiso interests may qualify as specified foreign financial assets. Failure to file carries $10,000 minimum penalty.

Homeowners Association. In Mexico, governed by condominium regime law which sets weaker minimum standards than US or Canadian equivalents. Reserve fund requirements are minimal. Enforcement against non-paying owners is slow. Review HOA financials, reserve balance, and meeting minutes before purchase.

Mexican national workers housing fund. Provides mortgage financing to Mexican workers. Not available to foreign buyers but relevant when purchasing from Mexican sellers who may have INFONAVIT liens requiring discharge at closing.

Internal Rate of Return. The discount rate that makes the net present value of all cashflows equal to zero. The most accurate single metric for comparing real estate investments with different holding periods, tax treatments, and exit scenarios.

Impuesto sobre Adquisicion de Bienes Inmuebles. Property transfer tax paid by the buyer at closing. Rate varies by municipality (2-5% of avaluo or purchase price, whichever is higher). In Quintana Roo, typical rate is 2-3%.

Impuesto sobre la Renta. Mexican income tax. Foreign nationals with Mexican rental income owe ISR at 25% of gross rental income OR 35% of net income (after allowable deductions). Capital gains from property sales are also subject to ISR: 25% of gross sale price or 35% of net gain.

Impuesto al Valor Agregado. Mexican VAT at 16%. Generally not applicable to residential real estate transactions but may apply to commercial properties or certain pre-sale contracts structured as services. Confirm with cross-border tax counsel.

Ley Federal de Proteccion de Datos Personales en Posesion de los Particulares. Mexico's federal data protection law. Requires organizations collecting personal data to maintain a privacy notice, obtain consent, and allow data subject rights. Applicable to platforms handling buyer and participant data.

Manifestacion de Impacto Ambiental. Environmental impact assessment required for development projects in environmentally sensitive areas. Required for most coastal construction in the Riviera Maya. Absence of approved MIA is a disqualifying red flag for any beachfront or jungle project.

Net Operating Income. Gross rental income minus operating expenses (management fees, maintenance, insurance, property tax), before debt service and income taxes. Used to calculate cap rate. Do not confuse with after-tax cash flow.

Government-appointed legal officer with exclusive authority to authenticate and register real estate transactions in Mexico. Unlike US notaries, Mexican notarios are senior attorneys appointed by state governors. They represent neither buyer nor seller but the integrity of the transaction and the state.

Programa de Certificacion de Derechos Ejidales y Titulacion de Solares. Federal program that converted ejido land to private title. Completion of PROCEDE does not automatically clear all ejido encumbrances. Verify status through SEDATU and the Registro Agrario Nacional.

Procuraduria Federal del Consumidor. Federal consumer protection agency. Registration with PROFECO is required for pre-sale residential developments. Verify PROFECO registration before purchasing any pre-sale unit.

Registro Publico de la Propiedad. Government registry where property rights, liens, and encumbrances must be recorded to be enforceable. Title search must include a registry search to identify all encumbrances.

HOA maintenance reserve for major capital expenditures (roof, elevator, facade, pool). Mexican condominium law sets minimal reserve requirements. Most developments in the Riviera Maya maintain inadequate reserves. Request 3-year HOA financials before purchasing in any condominium development.

Under Article 27 of the Mexican Constitution, foreign nationals cannot hold direct title to real property within 50km of coastlines or 100km of international borders. The entire Riviera Maya lies within this zone. Foreign ownership requires a fideicomiso or Mexican corporate structure.

Servicio de Administracion Tributaria. Mexico's tax authority, equivalent to the IRS. SAT collects ISR on rental income and capital gains from property sales. Foreign nationals with Mexican property income have SAT reporting obligations whether or not they are Mexican residents.

Secretaria de Desarrollo Agrario, Territorial y Urbano. Federal ministry overseeing ejido conversions and urban development policy. Ejido conversion status must be verified through SEDATU records, not just developer representations.

Secretaria de Medio Ambiente y Recursos Naturales. Federal environmental ministry. Issues and revokes environmental permits for coastal development. An approved MIA from SEMARNAT is required for most development projects in the Riviera Maya. SEMARNAT permit reversals have occurred.

Secretaria de Relaciones Exteriores. Issues the "Calvo Clause" permit required before a fideicomiso can be established. The permit allows foreign nationals to waive rights to invoke their government's protection in property disputes. Required for all fideicomiso transactions.

Short-Term Rental. Vacation rental, typically listed on Airbnb, VRBO, or Booking.com. Tulum and Playa del Carmen are STR-dominant markets. STR gross yields range from 8-12% in high-demand zones, but occupancy is seasonal and platform fee structures erode net returns.

Foreign Income Verification Statement required by the Canada Revenue Agency. Canadian residents with specified foreign property costing over CAD $100,000 must file T1135 annually. Mexican real property held in a fideicomiso must be disclosed. Penalties for non-filing reach CAD $2,500/month.

Legal investigation tracing ownership history and identifying encumbrances. Should cover at minimum 10 years of chain of title, registry searches, ejido status verification, federal maritime zone boundaries, and tax compliance. Commission from a notario independent of the developer.

The Mexican bank that holds legal title in a fideicomiso arrangement. Major trust institutions in the Riviera Maya include BBVA, Scotiabank, HSBC, Santander, and Banamex. Annual trust fees vary by institution ($500-800 USD/year). Verify the institution is authorized by the CNBV.

Rental income as a percentage of property value. Gross yield uses gross rental income. Net yield deducts management fees, operating expenses, and vacancy. After-tax yield further deducts ISR. In the Riviera Maya, advertised gross yields of 10-15% frequently become 5-7% after-tax net yields.