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FAQ Mexico Real Estate Closing Process

FAQ: MAKING THE CLOSINGfaq icon

Retaining legal counsel

32. Do I always need to retain legal counsel?

Not always, but many people prefer due to the fact that many of the legal contracts and other paperwork involved in buying a home in Mexico are complex and can be confusing to the general public, many people prefer to work with an attorney. An attorney can review contracts and make you aware of special considerations and potential problems, and can also coordinate and accompany you to the closing.

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33. Can I hire an Attorney from USA or I need to hire one from Mexico?

Investors should hire competent Mexican legal counsel when contemplating any real estate investment. Mexican laws and practices regarding real estate differ from those in the United States.

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34. Who is a good Attorney to hire?

Your Buyer’s Representative can assist you in finding a quality attorney.

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35. What are the fees of an Attorney?

Please go to Closing Costs.

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Escrow account

36. What is an escrow account?

An escrow account involves a process whereby an impartial third party, such as an attorney, an escrow company or a title company, is entrusted with the job of seeing that the transfer of ownership from the Seller to the Buyer takes place according to the terms of the written contract agreed upon by all parties involved. The escrow agent (third party) holds any funds safely until all the conditions and details have been realized as instructed by the contract and disburses the funds to the proper parties at the proper time as outlined in the escrow agreement signed by both the buyer and seller.

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37. Can I use an Escrow Company?

Yes. Please ask your agent about the companies that offer such services.

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38. Do I always need an escrow account?

No. Establishing an escrow account is not always necessary. Using this tool depends on the buyer and seller.

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39. Who can do this service for me in Mexico?

There are basically three companies that we recommend - Stewart Title, Mexlaw, and First American Title.

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40. Do I need to tell the seller that I'm going to hire an Escrow account?

Yes, it is always advisable to notify the listing agency and the seller of your desire to utilize an Escrow account.

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Purchase Contract

41. What is a Reservation Agreement?

In pre-construction projects, a reservation contract is used to hold a unit, until the investor has sufficient time to review the plans and Purchase Contract. For more details, review Making the Offer to Purchase.

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42. What is a Purchase or Contract?

The Purchase Contract is basically a contract giving beneficiary rights to the investor of a specified unit or units. The contract also outlines the payment schedule, dates of delivery, size and location of the unit, size and location of the complex amongst other details.

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43. What are other names for a Purchase Contract?

Other names for the Purchase Contract are Hard Contract, Promissory Contract or Assignation of Beneficiary Contract.

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44. Who reviews this document?

These contracts can be reviewed by the buyer, and it is also recommended that a Mexican legal counsel do a revision as well.

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45. Who signs this document?

The buyer signs on the buying part. The legal representative of the developing company, or the person who has legal authorization and capacity will sign on behalf of the selling part.

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46. Do we need a Notary Public for the signing of the Purchase Contract?

No, not until the property has established a regimen of condominium will the developer be able to transfer title of the individual condo units and at this time, will the operation be recorded and realized with a Notary Public.

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47. What items should this document contain?

Several items are necessary to be contained within this document. Payment plan, delivery dates, items to be included with delivery amongst others. Call me for more information on contract reviews.

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