Buying a property in Mexico, can have its challenges but it is very easy if you have the help of a professional Real Estate Agent. Here in Top Mexico Real Estate, we pride ourselves on helping our clients become homeowners in Mexico. Our expert team of Buyers Representatives can guide you through the legal and emotional process of getting your dream home here in the Mayan Riviera.
Here is a list of some of the words you might hear during the process and we hope this list will be useful when reading legal documents or when you come across a Spanish terms you do not understand.
Buyers Representative
A Buyers Representative is an agent who is hired and is dedicated to service the interests and needs of the buyer. This agent will work with external offices and with Sellers Representatives searching for the best properties in the market that fulfill the requirements of the buyer. This agent will review the clauses with the interest of the buyers. Check out the Top Mexico Buyers Representatives.
Listing Representative or Sellers Representative
A Sellers Representative is an agent who is hired and is dedicated to service the interests and needs of the seller. This agent will work with external offices and with Buyers Representatives searching for buyers for their exclusive listing in the market and works to fulfill the requirements of the seller.
Appraisal (avalúo)
In Mexico this appraisal is paid by the potential buyer, a professional will check the property, compare it to other properties in the area and make sure you are paying a fair price for your new home. They can also calculate the price of the construction as in pretending the building had to be rebuilt in a similar lot in the same area. A written report is given to the potential buyer. An appraisal is a powerful tool used to understand the price of the property or compare the property to others in the zone.
Bank Trust (Fideicomiso)
The Mexican Constitution does not allow direct ownership of real estate by foreigners in what is known as the “restricted zone.” The restricted zone includes all land located within 100 kilometers of any Mexican border, and within 50 kilometers of any Mexican coastline. In order to permit foreign investment in these areas, the Mexican government introduced “Fideicomiso,” (FEE-DAY-E-CO-ME-SOS), which is, roughly translated, BANK TRUSTS. Essentially, this type of trust is similar to trusts set up in the United States, but a Mexican bank must be designated as the trustee and, as such, has title to the property and is the owner of record. The Bank Trusts has enabled foreigners, as beneficiaries of the trusts, to enjoy unrestricted use of land on the coastlines, in order to realize improvements, expansions, and to profit from the sale of the property without restrictions. Fideicomiso are issued in 50 years periods and can be renewed or transferred to a person of your choosing. Click here more details about Fideicomiso.
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. There are several American companies that offer these services in Mexico, The Settlement Company, First American Title and Stewart Title. Â More details about escrow here and here
We will introduce more terms that you might find while in the process of buying your Mexico dream home in our upcoming posts. (read Buying Real Estate in Mexico: A List of Important Terms PART 2)
Now if you have any question about this or any of the TOP MEXICO REAL ESTATE properties we have listed in Playa Del Carmen, The Riviera Maya or anywhere throughout Mexico, please feel free to contact any of our TOP MEXICO EXPERT SALES TEAM and we will be glad to help you find your very own piece of paradise.
And remember, here at TOP MEXICO REAL ESTATE…
We make it happen!
