Closing Process for the purchase of a property in Mexico
Formal Offer: The buyer submits a formal offer to purchase the property, including the price, payment terms, and contingencies.
Acceptance: The seller accepts the offer, and both parties sign a purchase agreement to proceed with the transaction.
Closing Process
Escrow Account: The buyer deposits 10% of the purchase price into an escrow account, managed by a third-party escrow agent.
Inspection: The buyer conducts a property inspection to identify potential issues before moving forward with the purchase process.
Due Diligence: The buyer’s attorney reviews the property’s title to ensure it is free of any liens or encumbrances.
Permit for Foreigners: If the buyer is a foreigner, they must obtain a permit from the Mexican government to purchase property.
Notarization and Registration
Public Notary: The parties meet with a public notary (Notario Público) to sign the final deed (Escritura Pública) for the property.
Notarization: The public notary notarizes the deed, confirming its authenticity and legality before proceeding with the registration process.
Registration: The deed is registered with the Mexican Public Registry of Property (Registro Público de la Propiedad) for official records.
Timeline and Costs
Timeline: Typically, the closing process takes around 8 weeks, although it can vary depending on specific circumstances of the transaction.
Costs: The buyer is responsible for various costs, including transfer taxes, notary fees, registration fees, and attorney fees.
Additional Requirements for Foreigners
Fideicomiso: If the property is in a restricted zone, foreign buyers must establish a fideicomiso (trust) to hold the property.
Mexican Bank Account: Foreign buyers may need to open a Mexican bank account to receive the deed and pay property taxes.
It is essential for both foreigners and Mexicans to work with reputable attorneys and notaries throughout the closing process..
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Closing Process for the purchase of a property in Mexico
