In the prior weeks, we talked about the first steps to purchase your house in Mexico from abroad. In other words, what you need to do to be the owner of your own piece of paradise. Let’s now talk about the next step, the Promissory Contract.
First, we talked about the importance of hiring a Real Estate agent to advise and accompany you in the process. Also, we covered how you could reduce your options until you had chosen THE house, your dream home. And finally, we talked about the offer to purchase. Well, if buyer and seller have accepted the offer to purchase, it is then the promissory contract’s turn.
Within two weeks, the goal is to mature the offer to purchase into a promissory contract. For this purpose, we always recommend that you hire a buyer’s lawyer. He will be the one to prepare that promissory contract or, in some cases, to review the promissory agreement delivered by the seller.
What is a Promissory Contract or Promissory Agreement?
The promissory contract is a legal document that safeguards the rights and responsibilities of both parties involved. That is, until the closing of the agreement. While not mandatory in purchasing or selling a property, it is a good idea to ensure a safe process.
Amongst the advantages inherent to it is the speed of formalizing the binding document between the seller and the buyer. This step makes official the date of the future deed, its agreed terms, and values.
What is next?
Your lawyer will analyze the agreement and give his recommendations. He will also discuss the contract with you, what it means and the risks, and the options of how to manage those risks.
The promissory contract details the price, the conditions of the house, the date of the legal and physical delivery, and any other remaining steps. Then it also describes the remaining milestones in order to arrive to the legal or physical delivery.
Once the promissory contract has been formalized, meaning that both buyer and seller have discussed and agreed to it, they sign it.
When will I need to transfer my first deposit?
After signing the promissory contract, the normal process continues. That is, a first deposit is then required.
That first deposit can range from 20 to 30%, or even higher depending on the buyer and seller’s agreement during the negotiation process.
Soon we will continue discussing the rest of the steps for you to be the happy owner of the home of your dreams in Mexico.
You are just steps away. Get in touch with one of our buyer’s representatives at Top Mexico Real Estate to let them find the perfect home for you.
