Buying property in Mexico can seem to be a scary time, but if you are using a professional real estate agent or a lawyer you don’t have to be afraid, because things will go much easier if you use professionals during your property buying in Mexico. Many times you will see the purchasing process will be similar. Take a look at what to expect when buying Mexico property below.
- Agree a Price
Agree on a price verbally with the owner once you have found the property that you like.
- Written Sales Agreement (Convenio de Compra/Venta)
An agreement will be written up that will state the total cost of the property, everything that is excluded and included with the property.
You will need to leave a deposit of between 5%-10% at the time of signing the sales agreement, which will be made by the buyer, so if you back out of the purchase, then the seller will be compensated with the deposit.
You will need a property trust known as a fideicomiso if the Mexico property you want to buy is located within 50Km of the borders or coast. Mexico property outside of these zones do not require a fideicomiso although you may choose to have one.
- Calvo Clause
You are required to apply to the Foreign Secretary’s office for formal permission to purchase land. The “Calvo Clause” is the legal permission that you as the buyer will be asked to sign, which states that you are not seeking any type of foreign jurisdiction with your Mexico property purchase.
- Notary Public
In addition to a reputable lawyer or realtor, you will need a good notary public. The notary public can carry out official appraisals of any land your are purchasing, making sure that it is legal for you to buy. They will also check that developers have all the necessary permits to build etc and that sellers have paid all their taxes etc. The seller is required to show the Notary the original property deed, receipts for public utilities, taxes and service fees.
- Official Documents and Translations
To purchase Mexico property, you must make sure that you have copies and originals of your passport, birth certificate and immigration documentation. You may be required to have these translated.
- Capital Gains
Usually, the Capital Gains Tax is paid by the seller, but if you have agreed to pay these taxes, then this should be put into the buying agreement.
- Payment for Mexico Property
The buyer will receive the deed of the property when final payment is made, and this is always done at the Notary Public’s office when you will pay for the property.