Throughout the purchasing process, we highly recommend the use of an attorney. Your lawyer will make sure that the process satisfies all the legal requirements. Remember each country has different systems and methods for purchasing a new property.
In the case of purchasing a property in Mexico, the process is very different to the States or Canada. When buying a property in any part of Canada, there are only a few simple stipulations you need to follow. If you are a foreigner and will be staying in Canada for 6 months or less, you can open a bank account and are able to purchase property. If you stay in Canada for 6 months or more, you need to apply for immigrant status ahead of time. There are other non-resident terms that apply when buying larger or multiple properties. However, the buying process that Canadians follow is a near mirror to the United States ways of acquiring real estate.
Purchasing property in Mexico can have its trying times. One of the biggest obstacles is the language barrier – written and verbal. Nonetheless, Mexico’s system has several variating differences from its neighbors north of the border. These ‘differences’ include purchasing in or out the restricted zone, setting up a trust and buying pre-sale or re-sale. Also, understanding what is included in the closing cost.
Having an attorney who specializes in foreigners purchasing property in Mexico can usually eliminate any unforeseen problems. A lawyer could also speed up the acquisition. They can help you with things like interpreting legal documents, make sure the property has a clear title, and assist in the closing process to just mention a few of their contributing factors.
Lawyers will be able to help with setting up a trust if you are buying in a ‘Restricted Zone’ – 62 miles from any Mexico border and/or 31 miles from Mexico’s coastline. In some cases the buyer can take over an existing trust from the seller. They will also make sure that you can sell or buy properly a land or a property. On several occasions, owners sell their properties without having a clear title; as a consequence, the buyer(s) lose their money and the property with little to no retribution.
An attorney will explain the whole process as it unfolds
They can make sure you properly fill all the important documents and to do it on time. If you have an incorrect document, it can cost you more money and time. A lawyer can also make sure that you safely deposit your funds in a escrow account. When the time comes to payout money for one reason or another, your lawyer can advise you if everything is right.
Your lawyer can explain all the cost associated with your closing like paying taxes upfront and any other fees. If the purchasing process breaks down or disrupts for one reason or another, your lawyer will protect your rights with little to no financial damages. If you chose a lawyer that practices in the area that you are purchasing your new home in, they can help set up your utilities, show how to pay your annual tax bill and any other important bills.
Make sure you use an attorney with a license and a title in the country. Ask for all the necessary credentials before handing over any retainer money they require. A good rule of thumb is to ask potential lawyers for references. Asking for them is one thing, but making sure to follow up is another. You can also ask other expats in the area who they used for legal representation.
Start your new adventure on the right foot!
Not using a lawyer opens up so many potential problems – for reasons explained above. Unlike in the states, if you are taken advantage of or scammed in any way during the transaction, there is really no recourse. Mexico’s laws on punishing people or companies that perform fraud and/or practice unfair business acts are very weak at best. With this said, we highly recommend to have a reputable lawyer advising you throughout the whole procedure. If you want to know more about the purchasing process in Mexico, click on this link.
We specialize in helping Canadians and Americans find and purchase their home in Mexico safely. Visit our website and start looking for your dream house in Mexico. Remember, at Top Mexico Real Estate… We make it happen!
