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5 red flags to check before signing any developer contract
Payment schedules, delivery penalties, and the clauses that separate a certified developer from a risky one.
By Diego Alvarado · Legal & Compliance Editor
Updated Feb 2026 · 8 min read
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Most disputes with developers in Mexico trace back to a handful of contract clauses that buyers didn't push back on before signing.
Payment schedule red flags
Be cautious of any schedule that front-loads more than 30% of the price before groundbreaking, especially from a developer without completed projects.
Delivery penalties
A serious developer's contract includes a specific, enforceable penalty for missed delivery dates — vague language about 'reasonable delays' is a warning sign.
Clauses to avoid
Watch for unilateral price-escalation clauses and any language that lets the developer substitute materials or unit specifications without your written consent.
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