{"id":536,"date":"2009-11-03T23:31:49","date_gmt":"2009-11-04T04:31:49","guid":{"rendered":"https:\/\/www.topmexicorealestate.com\/temp-blog\/?p=536"},"modified":"2009-11-03T23:31:49","modified_gmt":"2009-11-04T04:31:49","slug":"what-to-watch-out-for-in-a-mexico-real-estate-contract-when-purchasing-mexican-properties-tips-from-a-panel-of-experts","status":"publish","type":"post","link":"https:\/\/www.topmexicorealestate.com\/blog\/2009\/11\/what-to-watch-out-for-in-a-mexico-real-estate-contract-when-purchasing-mexican-properties-tips-from-a-panel-of-experts\/","title":{"rendered":"What to WATCH OUT for in a Mexico Real Estate Contract when Purchasing Mexican Properties; Tips from a Panel of Experts"},"content":{"rendered":"

For your Mexico Real Estate<\/a><\/span> purchase, the promissory contract is a legal document of very high importance.\u00c2\u00a0 When negotiating this contract, it is important to make sure the contract includes all the elements that make it legal, that it includes conditions in your favour, and that it does not include conditions which can cause problems for you.\u00c2\u00a0 The following is a “checklist” compiled from advice given by a panel of Mexico real estate agents<\/a>,\u00c2\u00a0experts in their industries.\u00c2\u00a0 The following advice\u00c2\u00a0can be applied when purchasing Mexico Homes<\/a>, Mexico land<\/a>, Mexico condos <\/a>and similar properties.\u00c2\u00a0 The following experts contributed:<\/p>\n

\u00c2\u00a0<\/p>\n

Ivan Castillo – Stewart Title<\/a><\/span><\/p>\n

Jim Scherer – Puerto Vallarta Real Estate<\/a><\/span><\/p>\n

Linda Neil – La Paz Real Estate<\/a><\/span><\/p>\n

Mitch Keenan – Yucatan Real Estate<\/a><\/span><\/p>\n

\u00c2\u00a0\"\"<\/p>\n

Information and details to be included in the Mexico Real Estate Contract<\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

While some of the following items might seem obvious, it is necessary to check everything carefully.\u00c2\u00a0 As Mitch Keenan points out, “a Mexico real estate\u00c2\u00a0contract, like a USA contract has several elements that are required to make it a legal document.”\u00c2\u00a0 If any of these basics are missing, it could cause complications in the future and may not protect your interests as it should.<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

To be a legal document, the promissory contract should include:<\/p>\n

\u00c2\u00a0<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 A written contract – a contract for real property must be written<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Names and signatures of both Parties, buyer and seller<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Signatures of both parties, with and date and place<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Competence of the parties<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Offer and acceptance<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Agreement to bind both parties<\/p>\n

\u00c2\u00a0<\/p>\n

The following information is necessary to make sure that there are no surprises.\u00c2\u00a0 You might be under the impression that something is included in the property, and be surprised at the delivery not to find it.\u00c2\u00a0 If it is not spelled out in the contract, you are not protected.<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Detailed information of the property to be conveyed<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Accessories that the property will contain<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Date of delivery of physical possession of the property (if applicable)<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 The date of transfer of title<\/p>\n

\u00c2\u00a0<\/p>\n

Ivan Castillo points out that the last point – date of transfer of the title – is of key importance.\u00c2\u00a0 In some cases, buyers have paid the FULL property amount, are in physical possession of the property, but are still not in legal possession, i.e. the title has not been transferred.\u00c2\u00a0 Buyers put themselves at an unnecessarily high risk by allowing such a situation.<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

Conditions and procedures to protect your interests<\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

Besides this basic, but key, information, there are important procedures that should be followed and conditions that should be included in order to protect your interests as a buyer.<\/em>\u00c2\u00a0<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

Mitch Keenan lists the following procedures:<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Your contract should be written in English and Spanish<\/p>\n

\u00c2\u00a0<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 You should have it reviewed by your attorney<\/p>\n

\u00c2\u00a0<\/p>\n

Jim Scherrer points out the following conditions:<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Post-dating any initial deposit check to the date of expected purchase contract signing is the ideal route to take.<\/p>\n

\u00c2\u00a0<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 If the purchase contract price or terms and conditions can’t be agreed upon, the deposit check can be returned or stop payment ordered.<\/p>\n

\u00c2\u00a0<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 The promissory contract must clearly spell out all contingencies where and how the deposit money will be 100% refunded.<\/p>\n

Linda Neil adds:<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Avoid costly and time consuming litigation, insist upon including a binding arbitration clause in your contracts with the seller and other parties involved.<\/p>\n

\u00c2\u00a0<\/p>\n

What to avoid!<\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

Of course, you have to know what should not be in the contract.\u00c2\u00a0 Connected to his earlier point of specifying the title delivery date in the contract, Ivan Castillo points out the following DON’T:<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

*\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 Don’t agree to delivery of a high percentage of the purchase price without delivery of title<\/p>\n

\u00c2\u00a0<\/p>\n

Thomas Lloyd <\/strong>graduated from Purdue University Krannert School of Management with a degree in Management\/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree <\/strong>and Mexico Professional Real Estate License<\/strong> S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at <\/em>(512) 879-6546<\/span><\/strong> or through the company’s web site<\/em> www.TOP<\/span>mexicorealestate.com<\/a> NETWORK
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For your Mexico Real Estate purchase, the promissory contract is a legal document of very high importance.\u00c2\u00a0 When negotiating this contract, it is important to make sure the contract includes all the elements that make it legal, that it includes conditions in your favour, and that it does not include conditions which can cause problems […]<\/p>\n","protected":false},"author":2,"featured_media":13653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[78,77,301,376,305,13],"tags":[1539,1541,136,212,91],"class_list":{"0":"post-536","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-how-to-buy-property-in-mexico","8":"category-how-to-buy-real-estate-in-mexico","9":"category-mexico-purchasing-process","10":"category-mexicorealestateagents","11":"category-mexico-real-estate-contracts","12":"category-mexico-real-estate-tips","13":"tag-mexico-homes","14":"tag-mexico-land","15":"tag-mexico-property","16":"tag-mexico-real-estate-agents","17":"tag-mexico-real-estate-contract","18":"entry"},"_links":{"self":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/comments?post=536"}],"version-history":[{"count":5,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/536\/revisions"}],"predecessor-version":[{"id":593,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/536\/revisions\/593"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media\/13653"}],"wp:attachment":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media?parent=536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/categories?post=536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/tags?post=536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}