Pre-Sale & Off-Plan Due Diligence
How to evaluate a developer before committing capital to an unbuilt project
Why Pre-Sale Risk is Elevated
Pre-sale (preventa) purchases offer price advantages — typically 15%–30% below completed unit values — in exchange for bearing development risk. The risk is real: developers can run out of capital, face title issues on the underlying land, deliver significantly late, deliver below specification, or in the worst case dissolve the entity and disappear.
The Riviera Maya has seen all of these failure modes. The market's rapid growth has attracted undercapitalized developers, operators without track records, and projects built on land with unresolved title issues. Due diligence before committing any capital is not optional.
Developer Track Record Verification
Request a list of all completed projects — not renderings or promised projects, but delivered buildings. Visit completed projects in person if possible. Speak with owners in those buildings about delivery timeline, specification adherence, and post-delivery support.
Verify the developer's corporate registration (RFC and Acta Constitutiva) and confirm the entity that will sign your purchase contract is the same entity with the track record you verified. Shell companies and project-specific SPVs are common — ensure you understand which entity is contractually obligated to deliver.
Title Verification on the Underlying Land
Before any purchase agreement, verify that the developer holds clean title to the land on which they propose to build. This means a title search in the Public Registry of Property, an RAN query to confirm no ejido exposure, and confirmation that all municipal permits for the development are in place.
Developers will often present a purchase agreement before permits are approved, representing that permits are "in process." This is a risk — permit denials, delays, or conditions can fundamentally alter the project. Understand exactly what permits have been granted versus what is pending.
Contract Structure Analysis
Pre-sale contracts in Mexico heavily favor developers. Standard provisions include: flexibility on delivery timeline (often 12–24 month windows with extension rights); specification change clauses that allow material changes to finishes and layouts; force majeure definitions that may be broader than standard; and limited remedies for buyers in the event of non-delivery.
Have an independent attorney review any pre-sale contract before signing. Pay particular attention to: the exact delivery timeline and what constitutes breach; what happens to your deposits if the developer fails; and whether the purchase price is fixed or subject to adjustment.
Escrow and Deposit Protection
In Mexico, there is no federally mandated escrow requirement for pre-sale deposits. Reputable developers will place deposits in a dedicated escrow account or provide a bank guarantee. Many developers, particularly smaller ones, use deposit funds as working capital for the project — meaning your deposit is at risk if the project fails.
Negotiate for escrow protection on all deposits exceeding your risk tolerance. If a developer refuses, that is a material data point about their financial structure and your risk exposure.
Using Riviera Audit Participant Scores
Our developer confidence scores incorporate delivery track record, permit history, known dispute patterns, and financial signals extracted from public sources. A developer with a score below 60 warrants heightened scrutiny regardless of project aesthetics or sales pitch quality. Use our scores as a first filter, not a final determination — supplement with independent due diligence on every material purchase.