Transaction — Guide
How USD Transactions Work
A clear, step‑by‑step guide for cross‑border buyers
USD Transactions, Why They Matter
In Mexico, real estate can legally be purchased in USD or MXN, depending on how the promesa (purchase contract) is written.
When the purchase contract / promesa is denominated in USD, the purchase price is paid in USD, minimizing the amount of money that must be converted into pesos. This protects buyers from:
exchange‑rate volatility
unnecessary conversion losses
unpredictable peso fluctuations
In a USD transaction, only closing‑related fees—such as attorney fees, notario charges, taxes, and government costs—are paid in MXN. The purchase price itself remains in USD, reducing the buyer’s exposure to currency exchange and preserving more of their funds.
Even in a USD transaction, the escritura (deed) is issued in pesos because Mexican law requires all recorded property values to be expressed in MXN.
The currency exchanged between buyer and seller, however, is USD as defined in the purchase contract / promesa.
USD Transactions, How They Work
We provide a secure, compliant, U.S.-based structure for USD real estate purchases in Mexico:
1. USD as the Payment Currency
A purchase contract (promesa) structured with USD as the payment currency sets the purchase price in USD and defines how USD funds are delivered—typically the deposit and applicable fees, followed by the final payment at closing. When short‑term seller financing is agreed upon, the promesa outlines the USD financing terms, including the amortization schedule, interest rate, and payment timeline.
2. Funds Held in the U.S.
USD funds remain safely held in the U.S. under the CBTS structure until the time of closing.
3. Controlled Release
Funds are released strictly according to the purchase contract (promesa) and the executed closing documents. The closing attorney provides the exact MXN amounts required for closing costs and confirms when all parties have signed and the closing is ready. Once those requirements are met, CBTS releases the USD funds as outlined in the promesa.
4. Minimal Currency Exchange
Only closing costs, government fees, and attorney/notarial fees are paid in MXN—minimizing the amount of USD converted and protecting the buyer from unnecessary exchange exposure.
USD Transaction Flow Chart
The following diagram shows the step‑by‑step movement of funds and documentation in a USD real estate transaction based on the workflow commonly used with Notario 63 and the legal team assigned to the file. Other attorneys may follow a different process.
CROSS‑BORDER TRANSACTION SERVICES
FLOW CHART
1. Contact Us Early — Before Traveling or Working With an Agent — Early contact allows us to guide the essential pre‑steps and ensure your transaction is structured correctly as a USD cross‑border purchase, with the right information, support, and preparation from the beginning. Starting with us gives your transaction a solid foundation and protects you throughout the process.
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2. Explore Properties With Guidance From Cross‑Border Transaction Services — As you explore properties, we help ensure the options you consider are compatible with a properly structured USD cross‑border transaction. We provide guidance on transaction requirements and help you avoid properties that may create complications later, allowing you to focus on suitable options from the start.
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3. Submit Offer (Including Currency, Depository Instructions, and Compliance Requirements) — The offer establishes not only the terms of the transaction but also the financial structure, including where the deposit will be held, how funds will flow, and the currency in which the purchase will be executed. A correctly structured offer sets the foundation for a clear and organized USD cross‑border transaction.
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4. Offer Accepted — The seller formally accepts the terms of the offer, allowing the transaction to move forward to the next step, enabling us to begin preparing the Promesa (Purchase Contract).
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5. Promesa (Purchase Contract) Drafted by Cross‑Border Transaction Services — We prepare the Promesa based on the accepted offer, ensuring the correct currency, deposit instructions, and a clear, accurate reflection of the agreed terms so the transaction proceeds in an organized USD structure.
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6. Promesa (Purchase Contract) Signed — Both parties formally commit to the transaction by signing the Promesa, which establishes the binding terms, projected timelines, currency, and deposit structure. Cross‑Border Transaction Services, acting as the Depository, also signs at this stage and becomes contractually obligated to hold and release funds strictly according to the Promesa’s instructions. Once signed, the transaction is officially secured and ready for the buyer to send the property deposit and any applicable initial fees.
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7. Initial USD Funds Sent to the Depository — The buyer has five (5) business days from signing the Promesa to send the initial USD funds to the Depository. This first payment typically includes the Property Deposit, the Initial Attorney Payment, and any applicable Depository or Administrative Fees. These funds are received and held according to the Promesa’s instructions.
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8. Document Collection, File Preparation & Transfer to Closing Attorney — We collect all required documents, prepare the transaction file, and send the complete electronic file to the closing attorney to begin legal processing.
This is also the stage where a Power of Attorney (POA) can be arranged if the buyer will not be in Mexico for the closing. A POA is easiest and fastest to complete in Mexico, and most closing attorneys prefer to prepare and execute the POA locally. A POA can be completed outside of Mexico, but doing so requires additional legalization steps — buyers in the United States must obtain an apostille, while buyers in Canada must complete a full legalization process. Completing a POA abroad involves more time, more cost, and more procedural steps, so buyers who anticipate being unable to attend the closing in person are encouraged to begin this process early.
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9. Attorney Processing & Legal Coordination — The closing attorney conducts an in‑depth legal review, performs extensive municipal and registry investigations, verifies the property’s legal standing, and advances the transaction through the required legal steps.
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10. Closing Statement (USD) & Itemized Expenses (MXN) Issued — The closing attorney provides the full financial summary of the transaction in USD and the detailed list of legally required fees in MXN, giving the buyer a complete breakdown of all amounts due before closing.
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11. Final USD Payment Arrives in Depository — The buyer sends one single USD wire covering all remaining amounts due. The Closing Statement shows the total amount required to complete the transaction, combining all Itemized Expenses (including MXN‑denominated fees and any USD‑denominated costs) into one final USD figure. The closing attorney converts the MXN portions using a fair, commercially reasonable exchange rate selected in advance, with a built‑in cushion to cover normal fluctuations until closing.
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12. Final Walkthrough & Property Verification — The buyer completes the walkthrough in person or virtually with their agent (via WhatsApp video or FaceTime) to confirm the property’s condition and verify that all agreed items are present. Once completed, the buyer signs the “Delivery Acceptance” to authorize readiness for closing.
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13. Closing Scheduled — After the final USD funds arrive in the depository, we request the closing date and time through the closing attorney’s office. The closing attorney then confirms that the file is legally ready for closing. Once readiness is confirmed and the appointment is finalized, the buyer receives the official details for signing and finalization.
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14. Closing Day: Signing & Disbursement of Funds — The closing is conducted according to the buyer’s signing method. If the buyer has a Power of Attorney on file with the closing attorney, the attorney signs on the buyer’s behalf and the closing is completed without the buyer being present. If no POA is on file, all parties who do not have a POA must attend the closing in person to sign the documents. Once signing is complete, funds are released, and the closing appointment is formally concluded; the notarial office then carries out the post‑closing procedures, including certification and registration of the deed.
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15. Escritura / Fideicomiso Issued — After closing, the notarial office completes the post‑closing procedures and issues the certified copies of the Escritura (or the Fideicomiso Trust Deed, if applicable). Certified copies are typically available in approximately seven business days. The final registered deed or trust document is issued once municipal registration and, when applicable, federal authorization processes are completed; timelines vary depending on the municipality and whether the transaction involves a fideicomiso.