Tips for being a smart shopper.
If your interest is to invest in real estate in Mexico there is good news, the legal framework in Mexico opens these doors.
You should take precautions to avoid being a victim of fraud by people who pretend to be estate agents or property owners.
Below is a series of recommendations to prepare you to be a smart shopper.
The acquisition of a house or land, is a very serious and important issue, it is not the same as buying a product from a store.
You can get legal advice in a law firm. Make sure that the firm has an active professional certificate and has a fixed establishment. To check if a law firm has an active license to practice review this link
The same advice for the notary public your acting council may select, make sure that the office has a fixed establishment and that is within the list of notaries authorized. To check if a notary public has an active federal license review this link
Important thing you should take into consideration is not to sign any contract or make any payment before legal information; a complete title search for the property is satisfactory.
As you are in a country where the language is Spanish and may be an issue for you, it is most important you make sure that your advisor, does the following:
1. Gather legal information of the property (complete title search). Ask for a copy of the deed to the property and proof of the tax payments. With this documentation, you can verify if the property has issues that need to be addressed before it can be transferred. This information will show outstanding mortgages, liens, judgments and also allows you to know who is the legal owner of the same.
2. Check the dimensions of the property: it is necessary to take a tape to measure the property, and check the physical measurements to confirm it is the same in the registered public deed.
Once your council has verified this information, it is time to negotiate with the owner of the property. The next step is:
3. Contract between the buyer and the seller. With the help of your attorney, a contract is established, a purchase agreement. At no time during your real estate venture should you give the acting real estate broker money. Your selected notario will oversee the distribution of all money in a given transaction including the initial deposit to secure the property you have selected.
The purchase agreement should contain the following information:
Name and other data of the seller , federal identification card;
Name and other details of the buyer for identification, passport and visa;
Description of the property;
Date on which the contract is prepared;
Date (s) of payment;
Date of delivery of the property and signing of the final document;
Date in which the buyer will take possession of the property,
And the property price.
In this step the buyer makes deposit (advance) in front of the notary to formalize the contract, is usually 10% of the agreed total price. Purchase agreements usually have a penalty clause for both parties for failure to comply. The preliminary purchase contract sets a deadline for the signing of the final document sufficient to carry out all the necessary steps.
4. Once the paperwork is completed by the notario the final payment and delivery of the property will proceed to the signing of the final document. The signing will take place before the notario, the public notary your council has selected who in turn will make the closing legal. The document must be registered in the public registry of property, this diligence is carried out by the public notary.
In this step the purchaser acquires property and the seller his or her money concluding with the signature that expresses the consent of both parties.
Any questions you may have concerning this information can be addressed by our in staff lawyer, feel free to email us.