Property Tax and Water Clearance Certificate in Mexico

You've picked your home and you're about to sign, when a requirement catches many buyers by surprise: the notary public (notario público) asks for a certificate of no outstanding balance for predial and water (constancia de no adeudo de predial y agua). Without this document, in most cases the transaction cannot be formalized in a deed (escritura). In this guide we explain what this certificate is, why the notary requires it, how to get it from the municipality and from the water utility, and what happens when the property carries unpaid balances.

What is the no-outstanding-balance certificate?

The certificate of no outstanding balance (constancia de no adeudo, also called a certificado de no adeudo or a certificate of being current) is an official document confirming that a property has no unpaid debts for a given service. In a real estate sale, two are mainly used: the one for the property tax (impuesto predial), issued by the municipal or borough (alcaldía) treasury, and the one for water service, issued by the corresponding water utility (organismo operador).

Both refer to the property itself, not to the person. In other words, outstanding balances "travel" with the property: if the seller left bills unpaid, those debts would remain attached to the house you are about to buy. That's why it pays to check them well in advance rather than on signing day.

Why the notary requires it to execute the deed

The notary public is responsible for certifying that the transaction involves a property free of liens or encumbrances that could affect the new owner. As part of that role, in practice the notary requires the property to be current on its taxes and basic services before authorizing the deed.

There are several reasons behind this requirement:

• Buyer protection: it keeps you from inheriting debts you didn't create.
• Tax calculations: the up-to-date predial serves as a reference for tax filings related to the transaction.
• Loan requirement: banks and INFONAVIT often require the property to be current as a condition for releasing funds.
• Legal certainty: it reduces the risk of later claims over hidden debts.

Put simply, unless the property is current, you will have a hard time closing the purchase. That's why this step is part of the general review you should do before signing any deposit, a topic we expand on in our guide on how to verify that a property has no outstanding debts.

How to get the predial certificate

Property tax (predial) is paid to the municipality or borough where the property is located, so the no-outstanding-balance certificate is requested at the local treasury or revenue office (tesorería o dirección de ingresos). Although the procedure varies by locality, the general flow usually looks like this:

1. Identify the property's cadastral key (clave catastral) (it appears on the predial bill or in the deed).
2. Check the predial account statement at the municipal counter or on the online portal, if your municipality offers one.
3. Pay any pending bimonthly installments and keep the receipts.
4. Request the no-outstanding-balance certificate once the account is at zero.
5. Pick up the document or download it, depending on how your locality handles it.

If you want to understand how this tax is determined and why several periods sometimes pile up, see our guide on what the predial is and how it's calculated.

How to get the water certificate

Water service is managed by a water utility (organismo operador), which may be municipal, state-run, or intermunicipal depending on the area. The water no-outstanding-balance certificate is requested directly from that utility, not from the treasury. The general steps are usually:

1. Locate the property's water service contract or account number.
2. Check the outstanding balance at the utility's office or on its portal, if it has one.
3. Pay off any overdue bills and keep the receipts.
4. Request the no-outstanding-balance certificate or "account current" statement.
5. Verify that the document has a folio number, a stamp, and a recent date.

Keep in mind that in some areas there may be additional charges tied to water, such as sewer or sanitation fees. Ask whether the certificate covers them or whether you need a separate document.

What happens if there are unpaid balances

If debts turn up when you review the accounts, it doesn't mean the purchase falls through: it means they must be resolved before signing. Typically, outstanding balances are paid off as part of closing the transaction. The key question is who pays.

As a general rule, debts incurred before the sale belong to the seller, since they were generated while the property was theirs. However, this is settled in the negotiation and should be put in writing. Some common ways to handle it:

Keep in mind that predial and water aren't the only items worth checking: there are also maintenance fees in condominiums and possible liens. Before committing, review every front carefully; we've put together a practical checklist in our guide on how to verify that a property has no outstanding debts.

Approximate timelines and costs

Timelines and costs depend entirely on each municipality and utility, so we only offer general benchmarks here to help you plan. Confirm the exact figures with the local authority, as they change from year to year.

• Time: in many places the certificate is issued the same day or within a few business days, especially if the account is already current.
• Cost: it's usually a low-cost procedure, although some municipalities charge a fee for issuing the document.
• Validity: certificates have a limited validity period, so it's best to obtain them close to the signing date so they remain valid.
• Unpaid balances: if there's accumulated debt, paying off those periods is the larger expense, not the certificate itself.

A practical tip: coordinate these timelines with your notary's office and your real estate agent so that the certificates, the appraisal, and the availability of the deed line up in time. If you're still working out what the property is worth and your closing budget, use our tool to calculate the value of a property.

Frequently asked questions

Who must pay the unpaid predial and water balances?

Generally, balances from before the sale are the seller's responsibility, since they were generated while the property was theirs. That said, this is agreed upon in the negotiation and should be put in writing in the contract or before the notary's office.

Does the no-outstanding-balance certificate expire?

Yes, it usually has a limited validity period that varies by municipality or utility. That's why it's advisable to obtain it close to the signing date so it's still valid on deed day.

Can I execute the deed if the property has debts?

In practice, the notary usually requires the property to be current before authorizing the deed, so the usual approach is to pay off the balances before or during closing. Confirm the procedure with your notary's office.

Are the predial and water certificates obtained together?

No. They are separate documents requested at different offices: the predial one at the municipal treasury and the water one at the water utility. It's best to start both procedures early.