Purchase- Sale Process :

If you are considering buying property in Mexico, it is very important that you get as much information as possible to be well informed when making your decision. Here are some guidelines that may be helpful:

  1. Naturally, you will need to find a property that suits your needs.

  2. Present an offer to purchase in a written form. If the seller legally owns or holds title to the property then be ascertain that the owner has the legal personality to sell the property. Therefore there can be an agreement. The parties agree for the sale followed by a binding final agreement of sale.( a deposit may be requested).

  3. Notary (notary-at-civil-law)

Mexican law requires that all real property transactions be done by a Notary Public. The Notary is obligated to register in government books the deed of transfer of title, have it signed by the parties involved and have it recorded in the Public Registry of Property that corresponds to the location of the property. Once the deed of transfer of title is signed in the presence of the Notary and registered with the Public Registry of Property, the real property transaction has fulfilled the requirements of Mexican law.

  1. Closing Costs: It is common practice that the buyer pays the transfer or acquisition tax as well as all other closingcosts including the Notario fees and expenses, and the seller, pays his capital gains tax and the broker's commission. The Notary will verify each case in order to establish the exact closing costs.

Half of the total amount should be placed with the Notario (Real Estate Lawyer), in order for him to start the process of the closing documents. The remaining balance of closing costs should be covered at closing date. Closing Costs are approx 4.5 % to 5 % of the sales price, which include:

  • Real Estate Acquisition Tax
  • Notary Fees
  • Bank Trust -

  - 1 Time Fee for Foreign Affairs permit.
- Annual Fee

  • Foreign Investment Registration
  • Public Property Registration
  • Appraisal

Seller pays capital gains tax and real estate commissions.

  1. The remaining balance of closing costs should be covered at closing date.
Balance of total sales price will be covered at the closing meeting where the buyer will receive the new deed. The buyer and seller do not need to be present at the closing meeting, but they may be represented by their sales agent via a power of attorney.