An Agreement is defined by Mexican Legislation and the Mexico law as a voluntary pact to create, transfer, modify and/or extinguish rights or obligations; furthermore The Federal Mexican Civil Code and legal doctrine establishes that an agreement is binding when the following elements are met:

Existence Items.- These are the most primitive and essential elements which any legal Mexico real estate contract or agreement must be provided with: a) Consensus.- The express or tacit will of  the parties to execute an agreement; b) Object.- The agreement’s goal must be determined or determinable from a physical and legal point of view (i.e. transmission of rights and obligations, to grant, to refrain from doing, to do).

Validation Elements.- These items must be considered in order for the Agreement or Contract not to be affected by partial or total nullification: a) Capability.- Attribution that an individual or entity has, which allows him/it to be responsible from the legal acts performed (exercise capability and inherent capability). I.E. A child has inherent capability but no exercise capability, ergo, is not allowed to sign and/or execute any contract or agreement. B) Form.- The shape of the contract, it’s wording, syntaxis and semantics. c) Lack of vice.- The contract or agreement must not be subject to bad faith, violence, duress or injury. d) Legality.- The contract or agreement must be executed accordingly to the enforceable Mexico laws and will never be performed against public order or good customs.

Existence items must be present in order for the agreement to produce any legal effect whatsoever, and validation elements must be closely observed, otherwise a party could have a legal recourse to challenge the efficiency of the contract through court.

Juancarlos Pelaez has been helping non-Mexicans with their real estate contracts and activities for over 10 years in the Yucatan Peninsula region. A graduate from the prestigious Mexican University of Monterrey Technologico and a Masters Degree from Madrid Spain, JuanCarlos has ample knowledge in the regional laws and obstacles that most Americans and Canadians experience. You can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Every transfer of Mexico real estate property MUST, by law, be made before a Mexican notary public.

The Mexican notary public is required to have a degree in law.  He must have a minimum of five years of legal practice, pass a rigorous examination and then be appointed by the governor of the state in which he/she resides.   The notary is legally responsible for the review of the prior deed and the tax and lien certificates.  The notary must draft the new deed, calculate the Mexico property taxes due and pay them.  Also very important, the notary is accountable for his/her actions through the state and national notary associations.

It is commonly believed that an attorney, in addition to the notary public, is required when buying property in Mexico.   This is not necessarily the case.  In fact it may make more sense to seek out a CLOSING AGENT to handle the many details of the transfer, such as ordering and reviewing the title investigation; obtaining the certificates and trust permits, interfacing with the buyer and seller, answering their questions and concerns in their native language, explaining the nuances of the transfer process; overseeing the payment of funds for these services and expenses; reviewing the deed to be sure names and addresses are correct; being sure it is registered in the public registry of property; making sure it is delivered to the buyer; providing tax receipts to the seller………….and more!

When these matters are left with the Notary Public to handle, they may not all get done, or get done slowly due to the work load of most Notaries.   When these matters are handed to another attorney to perform, they may be sandwiched in between criminal complaints, court appearances and other more remunerative activities.

A good Closing Agent can be an attorney with expertise in title transfers, or it can be a company with experienced closing officers and attorneys on its staff for consultations in the event there are title issues.   More and more there are closing agents throughout Mexico.   They are specialists in titles and transfers.

The role of the Mexico closing agent

An experienced Closing Agent is a key person in the real estate purchasing process. Hiring a good Closing Agent who understands the ins and outs of the Mexican legal system and the requirements of the law as it relates to foreign investment will make the real estate transaction go much smoother.

The closing agent should be involved in drawing up a promise contract and reviewing all documents including title, certificate of no encumbrances, and  permits. A closing agent can also order a complete title search before the transaction reaches the notary public, which will save the buyer valuable time and money should there be a problem with the title.

The prudent buyer will always insist upon using a neutral third party closing agent to protect his or her interests.

Professional Closing Agents will have bi-lingual and experienced closing officers on staff to review the legalities of the transaction and to ensure that all the documents received are in order. Prudent buyers also enlist the help of the Closing Agent, who can oversee the permit process, review the draft of the deed being used in the transfer of title and order the title investigation, identifying any problems before the title has been transferred and money exchanged.

Finding a Trustworthy Closing agent

Clients should never hesitate to ask for details of the professional experience and references.  This is even more important when the real estate agent in the transaction is representing BOTH buyer and seller.  This is dual agency which is still common in Mexico.   In this case the buyer should definitely seek out his/her closing agent.

Questions to Ask a CLOSING AGENT: What exact services will you provide? What areas of law or real estate are your specialties? Can you provide an estimate of taxes and closing cost expenses? Will you order or conduct a title search? Can you provide at least three references?   Do you have experience with transfers to foreigners, Mexican bank trusts and foreign investment? How long have you been offering Closing Services to the public? How do you handle the funds you receive for closing expenses? Do you prepare specific instructions for the disbursement of funds?

Closing Agents do not have to be specifically licensed in Mexico to be able to supervise the transfer process of Mexican property. It is important to be cautious and do the same homework as when researching a real estate agent. Ask for credentials and references. The more experienced the staff and in-house counsel the company has in handling foreign investment transactions, the more protection and safety the buyer should have in a Mexican property purchase.

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

If you are selling your Property here in Mexico, the Mexican notary public will require several documents to be present for the closing process If you want a refresh on what all is involved during the Mexico Real Estate closing process click here to see a previous post that I wrote outlining these steps

If you are a buyer and new to the operations of purchasing property here in Mexico, it is also good to know and understand what documents are involved during the ownership transfer process There are many different properties that can be purchased here in this country, condos, single family homes, fractionals, oceanfront lots (If you want more information on properties in a particular city of Mexico, call up an expert or visit this web site to see some excellent options www.TOPmexicorealestate.com), all of these properties use the same basic documentation.

SELLING MEXICO REAL ESTATE AND THE DOCUMENTATION REQUIRED

The notary public has several key functions in the process of transferring the legal ownership from the selling party to the buying party Collecting taxes, witnessing the signatures are a few of these functions but today we will be talking about the documentation that is required to be delivered to the notary from the selling party of the property.

Identificacion Oficial – Official Identification

This would include for Mexicans IFE or passport For foreigners it basically includes only the passport.

Cedula Catastral – Cadastral Certificate

This document basically lists out the quantity of meters of the property, the government assesed value of the land and building for the basis of the anual property tax, and other information regarding the property.

Ultimo Pago Predial – Last Property Tax Receipt

Property taxes are paid on an annual basis These are due by April of each year. Most states in Mexico give incentives for early payments with discounts such as 25% if paid in December, 15% if paid in January, 10% if paid in February for example The Mexican notary public will require the copy of the last property tax receipt which should correspond to the present year of the sale of the property.

Certificado Libertad de Gravamen – Certificate Free From Liens and Encumbrances

TIME: approximately 3 days

COST: $169 pesos

REQUIRED DOCS: last property taxes paid and current, official id of land owner, copy of the cadastral certificate

Cerficiado de No Deudo Predial – Certificate of No Liability Property Taxes

TIME: approximately 7 days

COST: $285 pesos

REQUIRED DOCS:folio number of the property

Certificado de No Deudo Agua – Certificate of No Liability Water Services

TIME: approximately 3 days

COST: $72 pesos

REQUIRED DOCS: copy of your last water bill paid and current

Certificado de No Deudo Obra Estatal – Certificate of No Liability State Works

TIME: approximately 2 days

COST: $201 pesos

REQUIRED DOCS:last property taxes paid and current

Certificado de No Deudo Obra Municipal – Certificate of No Liability City Works

TIME: approximately 3 days

COST:sum of your last property tax paid plus $380 pesos

REQUIRED DOCS:copy of the cadastral certificate, copy of your last property tax paid and current

These are the main documents which the notary public will request in order to execute the legal transfer of the property from a seller to the acquiring buyer If you need help in realizing any of these procedures or have any questions regarding these themes, feel free to contact me or my offices

Thomas Lloyd

www.TOPmexicorealestate.com

(512)879-6546

“Amazing, the closings on real estate that I normally purchase last about 4 hours….this one in Mexico only took 40 minutes!” – A Client from Lloyd`s Real Estate who purchased a Condo in Playa del Carmen, Mexico

There are various activites realized in a Mexico Real Estate Closing process (see definition of closing) The first step as we always remind our readers and our new clients who are just starting to look for property in Mexico is …”select a well qualified Realtor to help you through all of the new steps purchasing here in Mexico, they will guide you through the purchasing process activities (SEE POST ON THIS TOPIC)” A good realtor will help you identify Mexico Listings,AND, they will guide you through the legal process, and introduce you to experts in other fields (lawyers, banks, notary publics) to make your operation safe and efficient.

THE MEXICO REAL ESTATEACQUISTION PROCESS

The client arrived to the airport at 12:30 pmStaff from the Lloyd's Real Estate had already sent photos and videos of the Condo unit with a pre-closing walk through

We drove directly to the Notary Public arriving at 1:30 pm The buyer`s lawyer had already written up the purhcase sales contract which had been approved long distance via emails between buyer, seller and coordinating lawyers and realtor

The Notary Public read through the contract to ensure that the buyer and seller understood the clauses (which had already been reviewed through emails) The Notary also confirmed the identities of both the present buyer and seller

The buyer and seller proceeded on signing the purchase sales contract which is bounded and filed within the notary`s books

With the signatures formalized within the Notary books, the escrow agent began connecting and giving instructions electronicallyMonies were then released to all of the planned accounts as instructed in the instruction letter This includes the taxes to be paid by the notary, the notary fees, and of course the money to the seller

The seller, once he made a quick call to his bank officer, verified that his money had been received. He was happy and satisfied, and than gave the keys and other documents over to the buyerWe were in the car again at about 2:10 pm.

“OK, we have our Mexican property!! But we have no beds, no refridge, no tables!!” – Mexico Property Owner

We took a quick trip to Sam`s Club, and to City Club to pack up with the essential living items Refridge, Bed Mattresses, some towels, toilet paper, hey… there's a washer and dryer for sale…take it Throw in the Corona 6 pack!

“Hey, this stuff is not going to fit in your truck nor in my car rental” – Mexico Property Owner

Right outside of these outlets (Sam`s Club and City Club)… delivery services Nice They are private local companies, and have had a good professional service history For $800 pesos, approximately $80 usd They took all of these essential accesories that we purchased on a 20 km trip to the waterfront condo, carried all of these items upto the second floor, helped assemble, and cleaned up all the packaging materials Not bad.

Around 5:00 pm, we were sitting around the pool, catching our second breath, relaxing with the Mexican Caribbean breeze chatting about what type of television set would function best in the condo

What about furniture, where can we find furniture here in Playa del Carmen

WHERE TO BUY FURNITURE IN PLAYA DEL CARMEN.

One of the first important steps to realize when first searching for property here in Mexico, find a good realtor who is qualified and who will be with you every step to find solutions as you adapt to living in Mexico

Thomas Lloyd

www.TOPmexicorealestate.com

(512)879-6546