Steps to Closing on a home in Mexico
At Beachside Real Estate, we have a trusted legal team that works with the Notary to handle the transaction coordination on your new property. You will be advised on progress and kept up to date. In summary, here are the steps to closing on your new property in Mexico:
- Discuss and write an offer to present to the seller, go over details and ask questions.
- Negotiate the offer and once accepted, the offer is initialed, signed and dated.
- The accepted offer details all terms of sale, closing date, price, etc, and have one effective date: when all parties signed the offer and all addendums in agreement.
- Seller has a period of time to provide documentation and/or information in order to satisfy the conditions in the offer.
- Buyer has deadline to order, complete, review and accept or reject a home inspection.
- Buyer may have a deadline to review legal documentation and/or accept and/or reject them.
- Once all conditions are satisfied/removed, the buyer’s agent will request an escrow account to be opened. An escrow contract will be signed by both buyer and seller and a file number is issued.
- The buyer will have a deadline to wire a 10% minimum deposit (part of the purchase price) and escrow fee into their new escrow account.
- At this point, the closing lawyers initiate coordinating the titling process with the designated Public Notary.
- An estimate of closing costs will be provided by the Notary and the Buyer must wire 50% to the Notary or the newly opened escrow account.
- Buyer and Seller provide the closing coordinator and/or Notary all required documentation such as: ID´s, proof of address, KYC Forms (Know Your Client), Bank trust forms, if applicable.
- From this point until closing, agents, lawyers, and the Notary — chosen by the buyer — work together to get everything done for the closing date.
- About 5 days before closing, Buyer funds escrow account with remaining balance of the agreed purchase price and arranges the remaining 50% of the closing costs to be paid.
- Utility bills, property taxes and any other expenses owed between buyer and seller will be prorated and agreed upon before or at closing.
- You will receive evidence that utility services on the property have been paid to the date of closing. You will receive letters of transfer in order to change the utilities into your name.
- Buyer and Seller attend closing or have a legal representative attend for them (with prior notice and acceptable power of attorney written and approved by notary and bank trustee).
- Signing of the corresponding public deed happens at notary and possession (unless formally changed) is given at closing.
- Official registered legal deed is ready 3 months later. Notary should notify new owners or transaction manager it is ready for pick up. Keep the original in a safe place and have copies for other uses as needed.
- After closing, buyers will receive two important xml files and two pdf documents. These are receipts from the notary of costs paid for the property: purchase price and notary closing costs. Buyer will need these records for tax purposes when the property is sold. Keep these records in multiple locations, like cloud, flash drive, hard drive for safety’s sake.
This article is based upon legal opinions, current practices and our personal experiences.