Unless you’re significantly experienced in the buying process, you speak Spanish fluently and you are familiar with legal paperwork, it will be wise to hire a real estate lawyer. Legal representation will provide peace-of-mind (someone looking out for your interests).
Here are ten reasons why:
1.- There is no specific law for real estate transactions in Mexico. – Therefore, there is no obligation to write a purchase agreement or “Attorney Review Period” in an offer.
2.- There is no mandatory education or test to become a real estate agent in all areas of Mexico.- Sometimes, agents dont have enough real estate knowledge; some of them became realtors by “placing an ad to sell a property” in the newspaper.
3.- Title search are not mandatory, neither inspections.- Your lawyer will write a purchase agreement to make sure all the paperwork and inspections are done before closing.
4.- How would you know about legal issues in the property?.- Nobody will perform a title search, unless you ask for it and if you do, you will have to pay for it. Wouldn´t be easier just have somebody taking care of all that matters to your investment?
5.- Listing real estate agents have to represent the seller´s interests. – It is very common to ask a 10% down payment to give directly to seller´s bank account. If something goes wrong, how would you get your money back?
6.- A lot of times, owners do not have 100% rights to sell.- The widow wants to sell her house after her husband´s passing, however, the property was in his husband´s name and there is no husband´s WILL.
7.- Buying a condo.- Did you know it is mandatory to have proof of neighbors (co-owners) notification of the sale? (usually seller does not know either).
8.- The property is transfered at closing. – This means that buyer needs to pay the whole price before the property is transfered. Your attorney will make sure to have you covered at all time.
9.- Sellers usually want to use “catastro price” to reduce costs and taxes.- All properties have to be registered in Catastro. Catastro is an inventory of real estate in Mexico. It set prices to pay some taxes.
10.- Even if you speak Spanish, reading legal paperwork could seems like a different language.- Are you ready to read your escritura by yourself at closing? Sometimes, notario will read out loud before asking you to sign the deed (you will have to understand as he speaks).
