If you are an American or Canadian who is considering purchasing Mexico real estate then using escrow is probably the ideal situation for you. You can deposit 100 percent of the purchase price in an escrow account or use a combination of direct down payment with the outstanding balance in the escrow account. Sometimes this will depend on what the seller or developer feels comfortable with, so there is always room for negotiation.
Many Mexican homeowners are not familiar with escrow accounts because in Mexico real estate transactions are closed at the Notary Public’s office. All payments are done from buyer to seller and the seller receives a check from the buyer for the full purchase price. When foreigners purchase second homes or land in Mexico they often incorporate the US escrow process into their Mexican real estate transaction. This tends to be easier in areas like Los Cabos or the Riviera Maya a place where foreigners have a strong presence. It´s also used in “restricted zones” where the closing process is more complicated. Â
In the US and Canada buyers are used to paying for property by making an initial deposit once the purchase agreement is signed with more funds transferred after certain conditions are met. An example of this could be waiting until parts of the house are complete (like the roof), or when title insurance is issued.
After completion of the home and final delivery the final deposit is made. All funds are deposited into the account of an escrow agent in accordance with the provisions of the signed agreement. This escrow agreement dictates the timing and conditions required for each deposit made. The fee for this process is usually $500-700 USD which covers the opening, administering, and releasing the funds according to the agreed-upon terms.
If you want to purchase Mexico real estate property please contact Top Mexico Real Estate. We have the experience and credentials to guide you through the process of purchasing the home of your dreams in Mexico. We can guide you through the process by answering all of your questions and making it easier for you to enjoy the home of your dreams.
(Related;Â Mexico Property: Everything you wanted to know about Escrow Part 1 & Â everything you wanted to know about Escrow Part 2)
