Real estate procedures are very different in Mexico, than in the USA or another country. There is no “escrow procedure” or “Title” companies, nor “home inspections” before you buy. Whether you buy directly from owners or through a real estate company, you need to have a good understanding of the Spanish language and Mexican law. Most of the closing costs will fall on the buyer. Deposits usually are made directly to the owner, not to an escrow account. Buying property in Mexico is a process unfamiliar to most and there are risks involved. That is why you need good representation.
Procedure – applies to most purchases
- Agree on the price.
- Purchase agreement stating the parties, property, price, deadlines, etc.
- Downpayment: usually 10% of the total cost.
- Title search.
- Free liens certificate.
- Paperwork to the notario’s office.
- Paperwork to get the SRE (Secretary of Foreign Relations) permit.
- Reviewing title at notario’s office to make sure it’s written correctly.
- Appointment to sign the deed.
- Payment of the total amount.
- Buyer and seller sign the deed at the notario’s office.
Closing Costs
It will depend on the property and each particular deal, but this is a common list of expenses:
- Property price
- Buyer’s agent (preferably an Attorney)
- SRE permit
- Free liens certificate
- Notario fee
- Buyers taxes
- Seller taxes
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[…] (promissory contract). The balance is payable upon the signing of the Trust Deed. The entire closing process takes between 30 and 60 […]