As a real estate attorney for more than 20 years with practice in the Baja area, the market has been at its top in decades. Very low inventory and very high activity. This may be the result of attractive location, low cost living, housing prices, inflation and real estate overpriced in California, among other things. If you are thinking of acquiring a property in Mexico, here is a 5-point manual that could guide you and give you a general overview of the real estate process in Mexico. Although, not all transactions are alike, and it is highly recommended to consult a real estate attorney, here are some aspects to look at:

 

1. Closing costs.

Closing costs should be about 6% of the purchase price. This includes Notario fees, a 2% transfer tax, certificates, land survey, recording fees, Attorney fees, trustee fees, etc.

 

2. Offer to purchase.

Either by means of an offer to purchase and acceptance, or a real estate purchase and sale agreement, it represents a document that outlines the terms of the transaction, meanwhile the parties go to title, which may occur within the next 45-60 days.

 

3. Setting up a bank trust.

This represents the name of the instrument that most of foreigners in Mexico will obtain, when acquiring properties in Mexico. This is a 3 party agreement (buyer, seller and trustee), good for 50 years, renewable every 50 years.

 

4. Due diligence:

A Real Estate Lawyer will pursue due diligence and gather the corresponding certificates, to make sure that the property is free and clear from any encumbrances. Also, since the Real Estate Lawyer acts as closing coordinator, will ensure that all of the documents, powers and representations, etc. are in place for a safe and successful transaction.

 

5. Execute final instrument before Notario Publico.

When the parties sign and the title is explained, taxes are paid, purchase price is paid as well, and a few more weeks, the title gets recorded.

 

If you are interested in knowing more about the subject or need professional consultation, please contact us, we are here to assist you.