The Buying process
Buying property in Mexico is different than in the U.S., Canada or Europe.
Once a desired piece of real estate has been selected for acquisition, a Purchase Agreement Form is drawn and a deposit of $ 5,000 to $ 25,000 US dollars is required to secure the property. Then the Sale and Purchase Contract is processed and sent to the buyer. Afterwards the Purchaser has 15 to 30 days to review the Sale and Purchase Contract. After said period, 10 to 30% or more of the total purchase price is paid as initial investment. These deposits may be placed into an escrow account and can either be in the form of check or wire transfer. The Sale and Purchase Contract will contain all the transaction’s corresponding details.
Many developments schedule payments for buyers based on a construction schedule. As the development advances a proportional percentage is paid out. The final payment is usually paid at closing.
The closing process involves going before a Public Notary to sign the Fideicomiso (Bank Trust). A Notary in Mexico is different from a notary in the United States or Canada in that they are granted more authority. They are appointed State Attorneys who act independently for both the buyer and seller, and have an obligation to the government to collect sales and property taxes. The Notary legalizes the transmission of ownership of any given property, and is used in the formation of any corporation or LLC. Most developers use a particular Notary because they have all of the developer’s documentation on file and it facilitates the process. However, purchasers do have the right to choose to work with the Notary of their choice.
At closing, the Notary will read the precise description of the property that is being sold and purchased as well as the agreed upon price, terms and conditions. If the Purchaser and the seller are in accordance with what is stated then in the same act, the buyer signs the Fideicomiso and the seller signs the transmission of ownership finalizing the sale. The next step is that the Fideicomiso is processed before the Department of Housing and a Title will be delivered within 120 to 180 days.
At Caribbean Shores Realty, our professional brokers will stand by your side in every step of the closing process, making sure that you have a smooth and enjoyable purchase experience.
