{"id":537,"date":"2009-10-29T00:13:25","date_gmt":"2009-10-29T05:13:25","guid":{"rendered":"https:\/\/www.topmexicorealestate.com\/temp-blog\/?p=537"},"modified":"2009-10-29T00:13:25","modified_gmt":"2009-10-29T05:13:25","slug":"top-5-most-common-mistakes-made-by-non-mexicans-when-buying-property-in-mexico","status":"publish","type":"post","link":"https:\/\/www.topmexicorealestate.com\/blog\/2009\/10\/top-5-most-common-mistakes-made-by-non-mexicans-when-buying-property-in-mexico\/","title":{"rendered":"Top 5 Most Common Mistakes Made By Non-Mexicans When Buying Property In Mexico"},"content":{"rendered":"

Mexico Real Estate<\/a><\/span> offers many great opportunities.\u00c2\u00a0 However, because of the fact that laws and processes are different here in Mexico, many non-Mexican buyers make costly errors because they don’t take the time find the information they need first.\u00c2\u00a0 In some cases when buying Mexico homes<\/a>, the new buyers even make blunders that they would avoid back home – simply because of the uncertainty of being in a different business culture.\u00c2\u00a0 Based on their years of direct experience in the Mexico property<\/a> market, a panel of experts from the TOPMexicoRealEstate\u00c2\u00a0NETWORK, “certified professionals that specialize in\u00c2\u00a0guiding new buyers<\/em><\/strong>\u00c2\u00a0through the Mexican purchasing process,” has identified the top 5 mistakes made by non-Mexican buyers.\u00c2\u00a0 The following is a compilation of their answers, giving a general overview of their answers for each of the five points, then giving their exact answers below.\u00c2\u00a0 Each mistake is followed by advice from the panel on how to avoid causing problems for yourself in that area.<\/p>\n

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

The real estate experts who contributed to this article are:<\/p>\n

\u00c2\u00a0<\/p>\n

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

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

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

Thomas Lloyd – Playa del Carmen Real Estate<\/a><\/span><\/em><\/p>\n

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

The top 5 errors non-Mexican buyers make are:<\/p>\n

\u00c2\u00a0<\/p>\n

#1 Not surrounding yourself with reliable, experienced professionals<\/span><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

The panel’s answers point to this as the number one error that non-Mexican buyers make when buying Mexico Real Estate.\u00c2\u00a0 The key behind this is to find an experienced, reliable broker or agent.\u00c2\u00a0 After this, it is also necessary to find a notary public – again with knowledge and experience to do things right – and a Mexico title insurance\u00c2\u00a0company<\/a>, among others. A reliable agent is central, as they can also help point you to other trustworthy professionals.<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

The panel’s answers are:<\/em><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

“Not using a reputable Agent\/Broker, not using a reputable notary public, and using a Title Company.” – Mitch Keenan – Yucatan Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/em><\/strong><\/p>\n

How can you avoid this error?<\/em><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

“Check with the USA Consul in Mexico. They have a list of recommended Notary Publics and Agents.” – Mitch Keenan – Yucatan Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“When you select an agent, make sure that the agent is member of AMPI<\/a><\/span>, The Mexican Association of Real Estate Professionals.\u00c2\u00a0 Also, check references.\u00c2\u00a0 This agent is representing your purchase in a country where you are not familiar with the laws; you need to be confident that that person is.” -\u00c2\u00a0 Linda Neil – La Paz Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“These top 5 errors are only a few examples of the items and risks that a non-Mexican buyer must administer. There are hundreds of other topics that a buyer must address and decide upon; only through EXPERIENCE can teach us to look for these issues. The best way to avoid all of these mistakes and other errors in the purchasing process is to surround yourself with experienced players. It costs the same commission rate to hire an agent with 15 years experience vs. an agent with only 2 months experience.\u00c2\u00a0\u00c2\u00a0If you are making a $200,000 dollar investment wouldn\u00e2\u20ac\u2122t it make sense to hire someone with credentials and years of experience to represent you.” – Thomas Lloyd – Playa del Carmen Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

#2 Buying from the listing agent and not finding an exclusive buyer’s agent<\/span><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

Even if an agent seems honest, reliable or experienced, no agent who is representing the seller can also represent they buyer fairly, since each one needs an agent protecting only their interest.<\/em><\/p>\n

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

The panel’s answers are:<\/em><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

“The most common mistake I have seen are for new buyers to retain the services of a real estate representative just because he was advertising a property on the internet and had his email and phone number on a yard sign\u00c2\u00a0next to a property. I am surprised as how some non-Mexican buyers who are very diligent in their money investment decisions while in their home countries come to Mexico and will choose to retain the services of a real estate agent based on the fact that the agent is able to speak English.” – Thomas Lloyd – Playa del Carmen Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“Buying anything from a listing agent or the sales agent representing the developer; their loyalty is to the seller and they have a fiduciary duty to that seller. No matter how honest, nice, and sweet that agent may seem, it would be a conflict of interest for him to discuss any negatives about the property or to truly help the buyer in getting the best price and contract protection.” – Jim Scherrer – Puerto Vallarta Real Estate<\/a><\/span><\/em><\/p>\n

How can you avoid this error?<\/em><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

“Use a professional buyer’s agent exclusively representing buyers and having no listings.” – Jim Scherrer – Puerto Vallarta Real Estate<\/a><\/span><\/em><\/p>\n

“The agent who represents you as a buyer cannot represent the seller as well.\u00c2\u00a0 Agreeing to and signing an agency disclosure agreement can serve as further protection.” – Linda Neil – La Paz Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

#3 Not carefully considering the implications of different property types, locations, etc.<\/span><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

Different property types have different have various considerations to be made.\u00c2\u00a0 Especially the area of pre-construction purchase of <\/em>Mexico Condos<\/a><\/span><\/em> needs special attention; preconstruction offers excellent opportunities, but for the buyer’s protection, the right steps need to be followed.<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

The panels answers are:<\/em><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

“Buying a pre-construction Mexico Condo<\/a><\/span> with a payment schedule based on the calendar.” – Jim Scherrer – Puerto Vallarta Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“Buying in a remote (and supposedly growing) area in order to save money. As everyone knows, the three main rules to buying real estate anywhere are location, location, and location. During periods of recession and\/or slow growth, these remote areas are the first to drop in value and the last to recover. With current economic conditions the way they are, it may be many years before the remote areas see any appreciation in value.” – Jim Scherrer – Puerto Vallarta Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“You should not attempt to buy Ejidal property. Ejidal property offers considerably lower prices, but it must be converted to private property before it can be sold.” – Linda Neil – La Paz Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“When purchasing in preconstruction, to allow for some money to be held back until the legal possession has been delivered. Many times the buyer will have paid out the entire value of the property, have received the physical possession, yet remain waiting for the developer to deliver the legal possession.” – Thomas Lloyd – Playa del Carmen Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

How can you avoid these errors?<\/em><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

“The buyer needs an agent that knows how to write purchase contracts that protect the buyer’s initial deposit and progress payments. They should be prepared with payment schedules based on construction milestones, delivery dates, closing date, etc. as opposed to calendar dates. They should also have construction delay penalty charges, contingencies for 100% refunding upon failure to perform, and escrow protection.” – Jim Scherrer – Puerto Vallarta Real Estate<\/a><\/span><\/em><\/p>\n

“Include only private property in your property search.” – Linda Neil – La Paz Real Estate<\/a><\/span><\/em><\/p>\n

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

#4 Not reviewing contracts and documentation or following processes properly<\/span><\/strong> <\/span><\/p>\n

\u00c2\u00a0<\/p>\n

Reviewing all documentation and following processes properly is necessary in any real estate purchase.\u00c2\u00a0 However, this is especially true when buying <\/em>Mexico Real Estate<\/a><\/span><\/em>, where regulations are not as well defined to protect the buyer, and taxation and other processes follow different rules than what buyers are used to in their home country.<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

The panel’s answers are:<\/em><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

“Many first time buyers do not understand the implications of the Capital Gains Tax<\/a><\/span> issues. They believe that capturing a low acquisition cost on a property will decrease their closing costs expenses but forget to understand the more expensive capital gains tax levied against profits on the sale of the property.” – Thomas Lloyd – Playa del Carmen Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“A potential risk is not to check if you are dealing with the legal owner of the property.” – Linda Neil – La Paz Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“Assuming everyone they deal with has the same business ethics as they are accustomed to in the US or Canada, thereby not paying extremely close attention to ALL<\/strong> documentation they are signing.” – Jim Scherrer – Puerto Vallarta Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“Not including a clause in their purchase sales agreement to allow for the first beneficiary (the buyer) to have the voting rights transferred from the fiduciary for condo association meetings.” – Thomas Lloyd – Playa del Carmen Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“Some non-Mexicans believe they can hold property with a private contract and avoid paying closing costs and taxes. They are placing much of their hard earned money at risk by not receiving a title duly subscribed with a notary public and filed in the public registry.” – Thomas Lloyd – Playa del Carmen Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“Depositing money in an agent’s or seller’s personal account.” – Mitch Keenan – Yucatan Real Estate<\/a><\/span><\/em><\/p>\n

How can you avoid these errors?<\/em><\/strong><\/p>\n

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

As Thomas Lloyd points out above, “these top 5 errors are only a handful of examples of items and risks that a non-Mexican buyer must administer.”\u00c2\u00a0 It is almost impossible for an new buyer to manage, and often even be aware of, all of these considerations.\u00c2\u00a0 Therefore, it is of key importance to have a reliable agent whose experience gives them the necessary knowledge of the various contracts, processes and documents involved.\u00c2\u00a0 Additionally, the panel points out the following:<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“Never deposit money or give money to an agent or a seller without verifying that the agent has a verified earnest money account or escrow account.\u00c2\u00a0 It is always a good idea to spend the extra $500 bucks to set up an escrow account with a title company to hold the deposit.”\u00c2\u00a0 – Mitch Keenan – Yucatan Real Estate<\/a><\/span><\/em><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

“Deal only with the legal owner of the property or a legal power of attorney.\u00c2\u00a0 It is necessary to request, receive and review a copy of the title.\u00c2\u00a0 For cases such as this, your agent will have to know Spanish, or you will need to get a certified translation.\u00c2\u00a0 You should also have a title investigation, and buy title insurance.\u00c2\u00a0 Even if the prices are high, it is worth avoiding risks involving the title.”\u00c2\u00a0 – Linda Neil – La Paz Real Estate<\/a><\/span><\/em><\/p>\n

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

#5 Rushing a Decision<\/span><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

Your Mexico real estate purchase is one of the most important decisions you will make, whether it is property for your home, or for an investment.\u00c2\u00a0 Rushing into a decision can have undesired, long term consequences.<\/em><\/p>\n

\u00c2\u00a0<\/p>\n

The panel’s answers are:<\/em><\/strong><\/p>\n

\u00c2\u00a0<\/p>\n

“Being pressured into a hurry up decision.” – Mitch Keenan – Yucatan Real Estate<\/a><\/span><\/em><\/p>\n

\u00c2\u00a0<\/p>\n

“Spontaneously buying on the beach, having no idea of the many magnificent properties available with better views, neighbors, lifestyle, etc.\u00c2\u00a0 than can be found on the beach.” – Jim Scherrer – Puerto Vallarta Real Estate<\/a><\/span><\/em> <\/strong><\/p>\n

\u00c2\u00a0<\/em><\/strong><\/p>\n

How can you avoid this error?<\/em><\/strong><\/p>\n

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

“Never be pressured into a deal. Take your time do your due diligence.” Mitch Keenan – Yucatan Real Estate<\/a><\/span><\/em><\/p>\n

If you feel you are being pressured, or not being presented with all the best options, also see the advice for error #1 “Not surrounding yourself with reliable, experienced professionals,” and error #2 “Buying from the listing agent, not finding an exclusive buyer’s agent.”<\/em><\/p>\n

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

For further information about buying Mexico Real Estate and avoiding costly errors, contact a Mexico Agent<\/a><\/span> in the TOPMexicoRealEstate <\/em>NETWORK; OUR EXPERIENCE; <\/em><\/strong>thousands of Property transactions & years of assignments in Mexico<\/em>\u00c2\u00a0AT WORK,\u00c2\u00a0 PROTECTING YOUR INTERESTS.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mexico Real Estate offers many great opportunities.\u00c2\u00a0 However, because of the fact that laws and processes are different here in Mexico, many non-Mexican buyers make costly errors because they don’t take the time find the information they need first.\u00c2\u00a0 In some cases when buying Mexico homes, the new buyers even make blunders that they would […]<\/p>\n","protected":false},"author":3,"featured_media":0,"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":[296,78,476,199,448,270,294,79,301,64,376,305,321,13,70,456,402],"tags":[469,1539,136,1526,442,1555],"class_list":{"0":"post-537","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ampi-mexico-organizations-2","7":"category-how-to-buy-property-in-mexico","8":"category-la-paz-real-estate-mexico-cities","9":"category-merida-real-estate","10":"category-mexico-buyers-agent-how-to-buy-real-estate-in-mexico","11":"category-mexico-cities","12":"category-mexico-organizations","13":"category-mexico-property-tips","14":"category-mexico-purchasing-process","15":"category-mexico-real-estate","16":"category-mexicorealestateagents","17":"category-mexico-real-estate-contracts","18":"category-mexico-real-estate-license","19":"category-mexico-real-estate-tips","20":"category-playa-del-carmen-real-estate","21":"category-puerto-vallarta-real-estate-mexico-cities","22":"category-yucatan-real-estate","23":"tag-la-paz-real-estate","24":"tag-mexico-homes","25":"tag-mexico-property","26":"tag-playa-del-carmen-real-estate","27":"tag-puerto-vallarta-real-estate","28":"tag-yucatan-real-estate","29":"entry"},"_links":{"self":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/537","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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/comments?post=537"}],"version-history":[{"count":5,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/537\/revisions"}],"predecessor-version":[{"id":549,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/537\/revisions\/549"}],"wp:attachment":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media?parent=537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/categories?post=537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/tags?post=537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}