After the process of searching and finding your dream property in Mexico, there can be several steps and even “hurdles” to get over before the transaction is complete and you become the proud owner of Mexico real estate. Here at TOPMexicoRealEstate, we work to make buyers aware of these processes, the turns they can take and the various solutions that are possible. In addition to the excellent overview which Mexico’s TOP Brokers have put together in our Mexico real estate guide for buying safely, recent transactions with clients have brought the following points about powers of attorney and title transfer to my attention.
Signing from a Distance & Power of Attorney
When a client is in the U.S. or Canada and they need to sign documents, there are basically two steps; the first contracts allow them to sign scanned/faxed documents, but the final signing of the Purchase Sales Agreement requires either personal presence in Mexico to sign or a power of attorney.
For promissory contracts, the signatures can be executed long distance. One party (usually buyer) from the U.S.A., Canada or Europe will sign from their home country. He will scan, and send the contract back to his lawyer by email. The lawyer in Mexico will then witness the signature of the party who is in Mexico (usually seller). Once signed in witness of the buyer’s lawyer, he will deliver the other contract set with signature of the buyer, and collect the original signature from the selling party. The lawyer will then keep the original in his office until the buyer returns to Mexico to collect his set for filing.
Or, the lawyer will scan in the contract with signature from the seller, and send by email. Since it is a private contract, these signatures do not need to be executed before a notary public, (unless the buyer’s lawyer has organized a different process.)
Once the private promissory contract is in execution, monies are then transferred.
When the property is ready for legal transfer, then the promissory contract is matured
into the purchase sales agreement, which is what is presented before the notary public for formalization. (This contract becomes the new deed.) This final step of formalizing the property transfer requires the buyer’s physical presence to sign before the notary public, or a power of attorney which specifies that a certain representative can sign the purchase sales agreement on their behalf.
Preconstruction, Condo Regime and Transfer of Title
For those who buy preconstruction, the developer will usually carry out the process of attaining the condo regime while they are in the process of constructing the building. Once the construction has reached a certain point and the condo regime is attained, the parties can proceed to the title transfer. The granting of the condo regime is also an important milestone for anyone who wishes to buy by means of a mortgage. Buyers will want to discuss the point of the condo regime with their agent and be sure that their payments are determined on the contract by milestones such as construction progress and condo regime rather than calendar dates.
These two points (signing from a distance and understanding the condo regime) will allow buyers to understand how and when their legal property transfer can take place and plan either to be in Mexico at the appropriate time or make the necessary power of attorney arrangements.
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