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Step-by-Step Walkthrough of the Purchasing
Process of Property in Mexico.
By: Resendiz Wong Abogados, Real Estate Attorneys
in Mexico
Step
1. Find a piece of
undeveloped property, home or condo which you would like
to purchase and verbally agree on a price with the seller.
Step
2. Upon receipt of
the buy/sell agreement (convenio de compra/venta), which
is typically composed by the seller’s real estate
agency, have your attorney review the detailed costs, inclusions
and exclusions, as well as pertinent timelines set out within.
Once everything has been approved by your attorney, a deposit
of around 10% shall be paid to the seller, and cancellation
penalties shall be set in case either party pulls out. These
cancellation penalties are normally equal to the amount
of the deposit, but this is something which may be negotiated
by your real estate attorney in Mexico.
Step 3.
If the property is located within the restricted zone, you
will need to establish a trust with a local bank. This process
is explained in more detail in our “Guide
to Buying Property in Mexico” which you may review
by following the link provided. Your legal representation
will notify you as to which banks are currently offering
the best rates for holding the property deed on your behalf.
Step 4.
You will need to request permission to purchase Mexican
property from the Foreign Secretary’s office, where
you will be required to sign the “Calvo Clause”,
in which you agree not to seek assistance from your government
in the case of any conflict pertaining to the property under
consideration, and that in the case you do request such
assistance from your government that you will automatically
forfeit your rights to the property.
Step
5.
Your attorney will investigate as to whether the seller
is in good legal standing and is legally permitted to sell.
In the case the seller is a real estate development company,
it is also important that your attorney ensures that they
are properly registered and all of their permits are current
and in good standing.
Step 6.
Once you have received copies of the property deeds from
the seller, your attorney will verify with the Notary Public
that they accurate and there that there are no existing
liens on the property.
Step 7.
Your attorney will also verify that the property is not
included in an ejido land claim. Ejidos are explained in
more detail in our “Guide
to Buying Property in Mexico”.
Step 8.
Your attorney in Mexico will then review any official land
appraisals provided by the seller and then arrange to have
the property reappraised to ensure that there are not any
significant incongruencies.
Step 9.
Your real estate attorney in Mexico will verify your legal
status in Mexico to the appropriate authorities by presenting
copies of your Passport, Birth Certificate, Marriage Certificate,
Visa, etc.
Step 10.
Your attorney will require that the seller provides up-to-date
original versions of, the original property deed, current
tax receipts, utility bills and all corresponding land-service
fees of the property in question. All of these documents
must be shown to be paid in full to assure that you are
not left responsible for any unpaid debts. (Under Mexican
Law, all liens or unpaid debts are transferred with ownership
of the property).
Step 11.
Unless otherwise stated in the purchasing agreement, the
seller will pay the Capital Gains Tax, the price of which
will be determined by the Notary Public.
Step 12.
Full payment is made at the time the deed is signed over
to you. This shall take place in the Notary Public’s
office in the presence of your real estate attorney in Mexico.
Your Mexican attorney’s and the Notary Public’s
fees are paid at this time as well as any corresponding
taxes involved in the land purchase.
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About the Author:
This publication was
brought to you through the collaborative efforts of
Ricardo Resendiz of Resendiz Wong Abogados. The attorneys
of Resendiz Wong Abogados have extensive experience
in assisting Americans and other foreign citizens
in purchasing real estate and commercial property
in Mexico.
Mr. Ricardo Resendiz
Wong obtained his law degree “With Honors”
from Universidad Nacional Autonoma de Mexico (UNAM).
Mr. Reséndiz has also completed post-graduate
studies at Escuela Libre de Derecho; Corporate Law
from Universidad Iberoamericana; Tax Law and International
Finance Law from Universidad Panamericana; a Masters
in Tax Law also from Universidad Panamericana, and
is the recipient of Letters of Credit from the International
Chamber of Commerce. Mr. Reséndiz is a regularly
invited lecturer at the U.S. Department of Commerce
in Mexico City where he speaks on issues of interest
to foreign investors. Mr. Resendiz is fluent in English,
French and German.
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The
information contained in this publication is intended solely
for informational purposes and is not to be construed under
any circumstances as legal advice. If you require legal
assistance in Mexico specifically in the areas of commercial
property or real estate law please do not hesitate to contact
our office by emailing at rwa@resendizwong.net or by calling
+52(55) 5678-5100. If you require legal assistance in areas
of corporate or business law please send us a general inquiry
to rwa@resendizwong.net
Thank You.
Step-by-Step
Walkthrough of the Purchasing Process in Mexico.
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