Guidelines for Buying Properties in Mexico

If you want to buy properties in any country, the process can give you a lot of stress. However, if the procedure is done correctly, investing in a property in Mexico can be as safe and secure as buying property in the US or Canada. Below are some tips to help you make a good investment in real estate in Mexico. We need to start with the agent who will represent you in the transactions; make sure that he is a real estate professional. Make sure that he is a member of the Mexican National Real Estate Association. The references that the real estate agent gives you should be checked out one by one. If everything is done then you can be sure that the person you have hired is experienced in Mexican transactions. It is best that the agent will only represent you, the buyer and not the seller also. If you want to be safe with an agent who also represents a seller then make sure that there is a contract, an agency disclosure agreement, which both parties are agreeable to and which for your own safety, you understand and agree to.

Private property is the only type of property that you have to purchase in Mexico. Ejidal properties which are sold at a lower price but are not privately owned can be considered an illegal sale. Make sure that you and your agent will only deal with the property owner or any other person with a legitimate power of attorney. When you make a purchase offer, make sure that a copy of the seller’s deed be given to you at once. If the documents are in Spanish, make sure that you get it translated. To protect yourself in any case, it is best that the title be investigated and that you buy a title insurance worth the amount you have paid. Title insurance helps in minimizing the title policy transfer risk to the insurance company rather that to the buyer. Knowing how to acquire titles can greatly help in reducing transfer costs in the future. Having a good estimate of the whole transaction cost is beneficial as well as having a reasonable budget for the closing costs, which can be high. Until the seller has signed the deed of sale, a major portion of your payment should be held in escrow. A registered title document should be given to you by the seller as soon as the transaction is finalized. If the buyer defaults when the seller is financing the property, a document should be made for the protection of the seller.

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