Quick Answer
The good-faith deposit (deposito) is typically 1% to 3% of the purchase price, paid when the offer is accepted. This deposit is held in escrow and applied toward the purchase price at closing. The deposit is usually refundable if the transaction fails due to title issues or unfulfilled contingencies outlined in the purchase agreement.
Detailed Answer
The good-faith deposit (deposito) when buying property in Mexico is typically 1% to 3% of the purchase price, paid at the time the offer is accepted. For a $500,000 property, expect to put down $5,000 to $15,000 as an initial deposit. This deposit is held in escrow — either by the listing brokerage, the notario publico, or a US-based escrow company like Stewart Title — and is applied toward the purchase price at closing.
The deposit is generally refundable if the transaction fails due to title defects, unfulfilled contingencies, or other issues outlined in the contrato de promesa (purchase agreement). However, if the buyer withdraws without cause, the seller may retain the deposit as liquidated damages. The specific refund conditions are negotiable and should be clearly written into the purchase agreement — another reason to have your attorney review the contract.
Our team ensures that deposit terms protect our buyers and that funds are held securely in escrow throughout the transaction. If you are using a US escrow company, funds never leave the United States until all closing conditions are met. Contact us to discuss how the deposit process works for your purchase.