There are buyers who occasionally pay a portion of their purchase in physical cash. However, since anti-money-laundering laws were updated in 2014, notarios are required by law to document how each payment (or partial payment) is made - bank transfer, cash, or cashier's check, etc.
There is a legal limit of how much cash can be used, and that amount seems to be increasing with time. In 2023, the limit was $800,000 MXN. Paying cash beyond that amount triggers an automatic reporting to SAT (the Mexican equivalent of the IRS).
Many sellers will continue to live in Mexico after their sale and are open to receiving part of the purchase price in physical cash. However, those who are moving to another country are usually not willing to accept any portion of the purchase in cash.
If you want to purchase using some physical cash, talk to one of our agents to make sure you are within the legal limits and that the notario who will close the transaction is in agreement.