FAQ Mexico Real Estate Closing Process

Retaining legal counsel

• Do I need always retain legal counsel?
• Can I hire an Attorney from USA or I need to hire one in Mexico?
• Who is a good Attorney to hire?
• What are the fees of a Attorney?

Escrow account

• What is an Escrow account?
• Can I use an Escrow Company?
• Do I always need an Escrow account?
• Who can do this service for me in Mexico?
• Do I need to tell the seller that I'm going to hire an Escrow account?

Contract

• What is a Reservation Agreement?
• What is a Purchase Contract?
• What are other names for a Purchase Contract?
• Who reviews this document?
• Who signs this document?
• Do we need a Notary Public for the signing of the Purchase Contract?
• What items should this document contain?

Property documentation

• What are all the steps/documents needed for a closing?
• Who should be responsible in collecting these documents?
• How do I know that all this documents are legally correct?
• What happens if the owner don't have all the documents?
• What's the appraised value of a property?
• What's the assessed value of a property?

Private title search

• Do I need title insurance?
• What is a private title search?
• Who can provide me this service?
• What is the cost of this service?
• Should I need to tell the seller that I'm doing private title search?

Bank Trust or Mexican Corporation

• What is a Bank Trust?
• Who can provide me with this service?
• What is the cost of the Bank Trust?
• Can I legally own property without a bank trust if I have an FM2?
• What can the foreigner beneficiary expect from the Trust Agreement?
• Is the Trust Renewable?
• Do I lose possession of property after 50 years have transpired?
• What happens to my "Fideicomiso" if the bank fails?
• How does the trust function?
• Are there additional fees for the Bank Trust?
• Who is involved in a Bank Trust?
• What is the First Beneficiary in the Bank Trust?
• What is the Second Beneficiary in the Bank Trust?
• Permission from the Foreign Secretary's office What is this permission and why do I need it?
• How can I get this permission?
• What do I need to get this permission?

Notary Public

• What is a Notary Public?
• What are the Notary Public's responsibility during the property transaction?
• Does the Notary Public need to be from the city where I'm making my purchase?
• Do all the Notary Public provides the same service?
• What are the fees of a Notary Public?
• Which are the Taxes that the buyer needs to pay?

Taxes

• Which taxes are paid in a closing?
• How much is the transfer tax?
• What are the property taxes for Mexico area and that general region?
• Who pays the Capital Gains Taxes?

Payments

• How much cash can I bring with me from my original country?
• Do I need to be present for the signing of the title transfer?
• When buying or selling a property in Mexico, who pays the closing costs?
• How should I pay the seller: wire transfer or cashiers check?

Public Registry

• What is the Public Registry?
• When do I receive my Title?
• Will I own title to the land?