Buying a home in Mexico is surprisingly easy. We have years of experience assisting buyers navigate the steps of home ownership in San Miguel. Our team of trusted attorneys, inspectors, escrow account managers and contractors will make your experience as simple as possible.
We have a step-by-step process for purhasing property in Mexico, and we will be happy to talk through each of the steps.
STEPS TO PURCHASE PROPERTY IN MEXICO
· When you find a house you would like to buy, we will make a Proposal to Purchase, which will list the offering price, any contingencies, the amount of deposit (usually 10% of the purchase price), and a list of what will be included in the sale.
· When both parties have signed the Proposal to Purchase, we can begin drawing the contract.
· You’ll need to get an SRE, which is a government issued permission to buy property in Mexico. The cost is $650 USD per permission, and each buyer needs an SRE. The Ministry of Foreign Relations issues the SRE, and it usually takes a week to two weeks process. There is an additional fee of $100 USD for an initial appraisal of the property
· The Buy/Sell Contract is essentially an extended, legally binding version of the Proposal to Purchase. It lists the price, contingencies, deposit amount, and penalty clause, in case either party breaks the contract.
· The contract will also list a closing date, which generally reads that the closing date will be “on or before” an agreed-upon date. Once this is signed by both parties, all are legally bound by the contract.
· Upon the signing of the contract, the buyer deposits 10% of the purchase price into an escrow account. The escrow account will be with First American Title Company in the United States. The buyer pays the escrow fee of $550 USD.
· An inventory will be made of all contents of the property, specifying what will stay in the property. This inventory list will be attached to the contract.
· The Buyer has the right have an inspection done of the property for structural, electrical, and plumbing. Any repairs or structural/system problems will need to be repaired before the house is sold, which is usually covered by the Seller.
· At closing, the Buyers and Sellers (or their powers of attorney) meet with the Notario for closing. At closing, the deed will be signed by both parties.
· Closing costs and taxes (except for capital gains tax) are the responsibility of the buyer and together generally cost 2.5% of the sales price.
· Before closing, the full purchase amount will have been deposited into the escrow account. After the signing, we will send a copy of the signed deed to the escrow company, and they will disburse the funds into the seller’s account.
At that point you own the property. The Notario registers the original Deed with the Public Registry and it is usually ready for you to pick up within three weeks.