Buying Real Estate in Mexico
Real Estate Process in Mexico:
Although there are similarities between the American, Canadian and Mexican Real Estate process there are many aspects that are completely different, here are a few guidelines that can help you ease this process. As a rule “never assume anything”, be sure to ask as many questions as you have.
- Find a reliable Real Estate Broker (one that has an office, and not working out of there Home). Find the property that you want to buy, once you find what you are looking for, make a formal offer: when working through a Real Estate company it is standard to place this offer with a good faith check, usually 5-10% of what you are offering. This check is not cashed or deposited is held in “escrow” by the Real Estate company and is just to guarantee the seller that you are making a serious offer.
- Buyer & Seller agree to a purchase price and terms. The good faith check will be taken as earnest money
- Select a Mexican Notary, The “notario” is an attorney who, after passing rigorous examinations, is commissioned by
the government as a public notary. A notario holds high office for life, unless he or she is removed for cause. The
notario fulfills a public function delegated by the government. The notary will take care of all the legal real estate
process involved with the purchase of the property.
Although all Notaries have equal authority fees may vary slightly make sure to ask for references and select one that speaks fluent English since this will obviously make things easier. The Notary will require upfront fees to cover their legal fees, appraisals, certificates of freedom of leans, etc. - You can designate a bank for the Trust, the Notary will refer you to the ones he usually works with.
- Complete the Bank Applications for the Trust and pay upfront fees, these fees cover the permit from Ministry of Foreign Affairs and fiduciary bank fees.
- Wait and be patient since obtaining this permit sometimes takes longer than expected (normally estimated time 3-4 weeks). Remember that is a burocratic government office issuing the permit.
- Once the Permit is authorized, appraisal and the certificates are ready the Notary will draft the final document that you will be signing at closing. You will be reached to schedule the closing.
- Prior to closing date: At RMM we provide an escrow account in the States at No Charge for your convenience, money is transferred into this account. A few days before closing, the Buyer will normally need to deposit the balance of the purchase funds into the escrow account.
- On the closing day, the Buyer will pay final closings costs (transfer taxes, registration fees, etc.). The fiduciary bank will likely attend or will have already signed the documentation.
- Wire transfers will be executed right after closing, for international wiring this might take one or two business days to clear.
- The Buyer can normally take possession of the property immediately after the closing. At this point anywhere from 30 to 90 days – or even more – has transpired since the original offer agreement depending on many factors. (Closing periods in Mexico are notoriously longer than in the US or Canada).
- The Buyer may request a certified copy of the bank trust or “Second Testimony” from the Notary this is usually ready a month after the closing date.
