Navigating the Purchase Process in Mexico
You’ve found the perfect home—now what?
pssst!! You can find many excellent resources regarding the purchasing process, FREE to download here.
After a successful house-hunting trip, it’s time to make an offer. While the process in Mexico is similar to the U.S. and Canada, there are key differences to keep in mind.
Making an Offer
Crafting a winning offer involves market knowledge and understanding the seller’s motivation. Your agent can guide you, but the ultimate decision is yours. In slower markets, you can negotiate aggressively, but in competitive ones, you might need to offer close to asking price. A cash offer without contingencies is the strongest, but some contingencies can protect your interests.
Key Contingencies to Consider
1. Inspection: Always inspect existing properties for maintenance issues. It’s worth the ~$400 USD cost for peace of mind.
2. Survey: Verify property boundaries to avoid future disputes. Costs are usually under $200 USD.
3. Inventory List: Ensure you have a written agreement on which furnishings stay with the property.
Choosing a Closing Agent and Notary
As the buyer, you select the closing agent and notary. A trusted agent will recommend reliable professionals who can explain costs and the process in detail. Clear communication in English is essential.
Sending Deposits
Once your offer is accepted, prepare to send:
1. Earnest Money Deposit: Typically 10% of the purchase price.
2. Escrow Fees: Local fees are ~$350 USD, but U.S.-based escrow companies offer added security for ~$650 USD.
3. Closing Costs Deposit: Covers permits, appraisals, and other legal requirements.
Attending Closing
Mexican law requires all parties to sign in person. If you can’t attend, you can grant Power of Attorney (POA) to your agent or closing agent. Sign the POA while in Mexico to avoid delays from international notarization and certification.
How Long Does It Take?
The closing process typically takes 4-8 weeks, but factors like fideicomiso (trust) transfers can extend the timeline. A skilled agent will anticipate delays and provide accurate timeframes.
Navigating the purchase process in Mexico can seem daunting, but with the right guidance, it’s straightforward and rewarding. Our goal is to ensure your journey is seamless and stress-free!
