{"id":13194,"date":"2026-07-11T17:00:00","date_gmt":"2026-07-11T22:00:00","guid":{"rendered":"https:\/\/citylaws.com.mx\/?p=13194"},"modified":"2026-07-26T09:10:06","modified_gmt":"2026-07-26T14:10:06","slug":"anticipo-apartado-arras-devolucion","status":"publish","type":"post","link":"https:\/\/citylaws.com.mx\/en\/abogado-inmobiliario\/anticipo-apartado-arras-devolucion\/","title":{"rendered":"Advance payment, deposit and earnest money: what you get back if you change your mind about buying"},"content":{"rendered":"

It depends on what you signed and where the property is located, but let's be clear: In Mexico there is no "general right to repent" of a purchase<\/strong>. When the buyer and seller agree on the property and the price, the sale is perfected and binding for both parties, even if the property has not been delivered or the full amount paid (Article 2249 of the Federal Civil Code). Therefore, if you back out, the rule is that You breach the contract<\/strong>, And getting your money back will depend on how the advance payment, deposit or earnest money were agreed upon, not on your desire to cancel.<\/p>\n

This is one of the most frequent questions we receive at City Laws. Someone makes a deposit to reserve an apartment in the Riviera Maya, then weeks later changes their mind and assumes they'll get the full amount back because "it was just a down payment." Sometimes they do, sometimes they don't, and sometimes they get a partial refund. Below, we explain, with the law in hand, what each term means and when you can get your money back.<\/p>\n

First things first: buying is a binding agreement<\/h2>\n

Many people believe that they are not bound until they sign the deed, but Article 1796 of the Federal Civil Code establishes that contracts are binding from the moment they are perfected, and Article 1797 clarifies that neither their validity nor their fulfillment can be left to the discretion of only one of the parties: You can't cancel just because you want to.<\/strong>, Just as the seller cannot back out at will.<\/p>\n

When one party fails to comply, the party that did intend to comply may choose<\/strong>, According to Article 1949: to demand that the contract be performed by force, or to request its termination (cancellation), and in both cases to claim damages. If the contract is terminated, the parties must to return what was given<\/strong> \u2014for example, your advance payment\u2014, but the party who breached the contract is liable for those damages. That's why sometimes you don't get everything back: it's not a punishment for backing out, but compensation for what your change of heart cost the other party.<\/p>\n

Advance payment, deposit and earnest money are not the same thing<\/h2>\n

On the street these three words are used almost as synonyms, but legally they have different treatments, and that difference decides how much you recover.<\/p>\n\n\n\n\n\n\n\n
Figure<\/th>\nWhat is<\/th>\nWhat happens by default if you change your mind?<\/th>\n<\/tr>\n<\/thead>\n
Advance payment \/ down payment<\/strong><\/td>\nA down payment on the price<\/td>\nIt's deducted from the price if you buy; if the contract is terminated, it's refunded, but discounts or penalties may apply if you breached the contract.<\/td>\n<\/tr>\n
Paragraph<\/strong><\/td>\nA reservation, usually documented as a promise of sale<\/td>\nIt creates an obligation to sign the final contract; refusal may result in liability.<\/td>\n<\/tr>\n
Arras<\/strong><\/td>\nQuantity that guarantees compliance; by default they are confirmatory<\/em><\/td>\nUnless expressly agreed otherwise, they are deducted from the price and guarantee your compliance; they are not a "right to withdraw".\u201c<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

And there is one detail that surprises almost everyone: in commercial sales, Article 381 of the Commercial Code stipulates that, Unless otherwise agreed, amounts paid as earnest money are deemed to be paid on account of the price<\/strong>. By default, your advance payment is part of the price<\/em>, It's not a fine; for it to be a "cancellation penalty," it must be expressly agreed upon. Keep in mind, however, that Article 381 governs sales. commercial<\/strong>: the purchase and sale of housing between individuals is usually civil<\/strong>, governed by the Civil Code of the state, which does not always regulate earnest money, so this criterion does not automatically apply to any transaction.<\/p>\n

And the "reserved space"? It's almost always a promise of sale.<\/h2>\n

When you book with a layaway plan, what you usually sign is a promise of sale contract<\/strong>A preliminary contract is a agreement by which both parties commit to signing the final contract later. To be valid, Article 2246 of the Federal Civil Code requires that it be in writing, contain the elements of the final contract, and be limited to a specific time period. The promise only creates an obligation to do<\/em>To celebrate the sale. If the person who promised refuses to sign, Article 2247 stipulates that the judge may sign in their absence or that the defaulting party may be liable for damages. Therefore, a contract is not a "piece of paper without consequences": it is a real commitment, and it is advisable that a real estate lawyer<\/a> Please review the return policy before returning it.<\/p>\n

When the contract says "you lose the advance": the penalty clause and its limits<\/h2>\n

Many contracts penalize those who back out: \u201cif you cancel, you lose what you've already paid.\u201d This is based on the penalty clause<\/strong> or conventional penalty. According to Article 1840 of the Federal Civil Code, that penalty replaces damages<\/strong> (both charges are not applied simultaneously) and, according to Article 1842, the party charging the fee does not have to prove the damages. However, the law includes safeguards that protect the buyer and that almost no one is aware of:<\/p>\n