New Construction Warranties for Real Estate in Cabo

Understanding the 5-3-1 Guarantee for New Construction in Mexico

When you purchase a newly built property in Mexico, it comes with certain protections established by PROFECO (Mexico’s consumer protection agency). These protections are known as the 5-3-1 Guarantee, and they outline the builder’s responsibility to repair or correct issues that may arise after delivery.

Here’s how it works:

5 Years – Structural Guarantee

For the first five years, the builder is responsible for any structural damage. This includes issues such as cracks in walls, foundation problems, or other defects that affect the structural integrity of the home.

3 Years – Waterproofing Guarantee

For three years, the builder must cover any waterproofing issues. If the roof, terraces, or other areas were not properly sealed and leaks develop, the builder is obligated to fix them.

1 Year – General Finishes and Systems

For one year, the guarantee covers other elements of the property, such as doors, windows, fixtures, and finishes. This is essentially a “punch list” period for smaller defects or issues in the property that may appear after you move in.

It’s important to note that this guarantee does not apply to appliances or equipment that come with the property (like a refrigerator or washing machine). Those are typically covered by their own manufacturer warranties.

The 5-3-1 Guarantee provides peace of mind for buyers of new construction in Mexico, ensuring that the builder is held accountable for the quality of their work for a reasonable period after handover.

While this can vary case by case, the warranty period typically begins at the time of possession, rather than at the date the deed is recorded, if those two dates differ.

Alejandro Donnadieu – alejandro@caborealestate.com

Mariana Plowes - mph@bajalegalgroup.com