The agency won't return my earnest money — what can I do?

You reserved an apartment in CDMX, handed over a check or transfer as a deposit and, weeks later, you decide not to move forward with the deal — or the agency itself changes the terms. When you ask for your money back, they tell you it's no longer possible. Are they right? The short answer: it depends on the document you signed and on who breached first.

What "arras" or earnest money means in Mexico

In Mexican practice, "arras" and "señal" tend to be used interchangeably to refer to an advance the buyer hands over to lock in the property while the final deed is signed before a notary. The Federal Civil Code and the state codes recognize these figures, although their concrete treatment depends on the promise-to-purchase contract and on local legislation.

The key is to distinguish three documents that are often confused:

• Reservation letter or agreement: an informal arrangement with the agency, generally without binding force as a sale.
• Promise-to-purchase contract: this already creates reciprocal obligations and usually includes an earnest-money clause.
• Final purchase contract: signed before a notary public and recorded in the Public Property Registry (RPP).

When the agency can legitimately keep your money

Asking for a refund doesn't automatically mean you're right. The agency may keep the deposit if you, as the buyer, breached one of these conditions:

• You backed out without justified cause after signing a binding contract.
• You failed to deliver documentation or the down payment within the agreed deadline.
• Your Infonavit, Fovissste or bank loan was denied for reasons attributable to you (omissions, false data) and the contract anticipated this.
• You let the promise period lapse without giving any written notice.

When you have the right to recover your deposit

You have a strong position to demand a refund if:

• The agency or seller breached first (didn't deliver property documents, didn't release liens, didn't provide property-tax or water no-debt certificates).
• The mortgage loan was denied for reasons listed as justified in the contract.
• Hidden defects appear: occupations, irregular construction, missing land-use permits, deeds with chain-of-title issues.
• You were given information that doesn't match reality (square meters, number of parking spots, condominium ownership regime).
• The document you signed contains abusive clauses or wasn't clear about the consequences of cancellation.

Step-by-step to claim your refund

1. Carefully review what you signed

Pull out the contract, emails and transfer receipts. Identify who received the money: the agency as intermediary or the seller directly.

2. Send a written demand

Send an email and, if possible, a registered letter with proof of receipt requesting the refund, citing the clause that backs you up and giving a reasonable deadline (10 to 15 business days).

3. File a complaint with Profeco

The Federal Consumer Protection Agency takes complaints against agencies and agents acting as service providers. Conciliation often resolves the case without going to court.

4. Civil lawsuit if nothing works

As a last resort, an attorney can start an ordinary civil proceeding in the relevant court to demand the refund plus interest and damages.

Example: earnest money in a $3,500,000 MXN deal

Imagine a house in Guadalajara at an agreed price of $3,500,000 MXN. You paid $70,000 MXN as a deposit (2% of the value). The seller fails to release a mortgage on the property. In that scenario:

• You're entitled to recover the full $70,000.
• Some contracts agree on doubling the refund when it's the seller who breaches. Check whether your clause provides for that.
• If the agency refuses, you can also claim the cost of the bank appraisal and preliminary notary fees.

How to protect yourself before signing

• Always request a lien-free certificate from the RPP before paying.
• Verify property tax and water bills are up to date.
• Ask for the seller's official ID and, if applicable, the representative's power of attorney.
• Negotiate explicit refund clauses for typical cases: loan denial, defects, delivery delays.
• Never pay in cash without a document signed by both parties.

What if the agency disappears?

If the agency closes its offices or stops responding, the contract is your most important tool. With it you can file a complaint with Profeco and, in parallel, a fraud complaint with the state Public Prosecutor when there are signs of simulation. Keeping emails, deposit slips and WhatsApp messages can tip the scale.

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