10 Easy Steps To Buying In Mexico
The first step in any financial transaction is determining how much you want to spend, and buying real estate in Mexico is no different. This will also help you decide whether it will be a cash purchase or if help with financing is needed.
Would you make any other major purchase without consulting a professional? Buying real estate in Mexico is no different. Our experienced agents have what it takes to help guide our clients through the entire purchasing process, from deciding on a property to closing. Bonus: We can also help with financing!
When it comes to searching properties for sale in Mexico, not all real estate brokerage firms are created equal! At Investment Properties Mexico, we have access to the largest selection of properties in Mexico’s top destinations and have built strong relationships that allow us early access to fabulous deals.
We recommend using an attorney because, quite simply, it is in your best interest as our client. Having a trusted Mexican legal expert who is fluent in English adds another level of security and transparency to every real estate transaction and can even help save you money.
The agents at Investment Properties Mexico are also skilled in helping clients submit an offer to purchase and will also assist with making a good faith deposit into your attorney/client trust account or escrow.
After the first offer and good faith deposit is presented, your real estate agent will work as a go-between until both parties – the buyer and seller – agree with all terms of the transaction. Keep in mind that the offer could go back and forth a few times as you negotiate the price, delivery, terms, etc. of the sale.
Also known as the Promise to Purchase Agreement, the sales contract formalizes the price and conditions of the deal, and once agreed upon, is signed by both the buyer and seller.
These are the two ways a foreigner can legally buy property in Mexico. A bank trust, or fideicomiso, is a type of real estate trust held on your behalf by a Mexican bank of your choosing. In this scenario, the bank acts as Trustee of the property/trust and the buyer is designated as the beneficiary. Buyers who plan to conduct the investment as a business may opt to establish a corporation instead, which permits foreigners to own, operate and administer a corporation in Mexico.
Both your attorney and a notary (notario) will ensure the legality and transfer of the title before any real estate transaction is complete. For added assurance, Investment Properties Mexico works with both First American Title Co. and Stewart Title to provide trusted title insurance.
Upon closing on real estate in Mexico, the buyer is expected to deposit the final monies before the title is delivered. Closing is conducted by the notary and closing costs typically include taxes and notary fees, along with fees for the appraisal(s), loan origination, application and obtaining the SRE permit, as well as for establishing the trust and setting up the escrow account. Although most Mexico real estate transactions are still done as cash purchases, if the sale has been approved for financing, the closing costs are generally between 7-10% of the sale price.