Developer Due Diligence
How to evaluate a developer before you commit to a pre-sale
Why the Developer Matters More Than the Project
A beautiful rendering and a compelling sales pitch tell you nothing about whether a project will actually deliver. In the Riviera Maya corridor, project delays and outright abandonment are common enough that developer track record should be the first filter you apply, before you evaluate location, price, or amenities.
Track Record: What to Actually Check
Ask for a list of the developer's last three to five completed projects, then verify independently rather than trusting their summary. Search the project names plus terms like 'retraso' (delay) or 'demanda' (lawsuit) in Spanish-language local news and Facebook groups. Visit a completed project in person if possible and talk to owners about their actual delivery experience versus what they were promised at signing.
On-Time Delivery Rate and Average Delay
A developer's on-time delivery percentage and average delay in months are the two most predictive numbers available. A developer with a sub-50% on-time rate or delays averaging over 12 months has demonstrated a pattern, not a one-off circumstance. Riviera Audit tracks these metrics for corridor developers where public records and permit history allow verification.
Financial Structure and Escrow
Confirm whether your payments go into an escrow account administered by a third party (ideally a bank or licensed fideicomiso trustee) rather than directly to the developer's operating account. Ask specifically what triggers each payment release; construction-milestone-based releases protect you far better than calendar-based releases, since a stalled project still hits calendar dates.
Permit Status Before You Sign Anything
Never rely on a developer's verbal assurance that permits are 'in process.' Request copies of the actual construction permit (licencia de construcción) and, for coastal or environmentally sensitive parcels, the SEMARNAT environmental authorization. A project selling units without a construction permit in hand is selling on the assumption that permitting will succeed — an assumption you are financially backing.
Red Flags That Should Stop You
Watch for: pressure to sign within 24-48 hours to 'lock in' pricing, refusal to provide escrow account details in writing, no verifiable completed projects despite claims of years in business, and unusually large upfront deposits (above 30-40% before any construction milestone). Any one of these alone is a caution sign; two or more together should end the conversation.
Using Riviera Audit Developer Intelligence
Our developer database tracks on-time delivery rates, average delays, units delivered, and AMPI status where publicly verifiable. Treat these scores as a starting filter, then do the independent verification steps above before wiring any funds — no score, including ours, replaces direct confirmation of escrow terms and permit status.