Buyers & Sellers
Our goal is to ensure our clients stay financially and legally secure while buying or selling real estate in Mexico.
Our team of multilingual real estate attorneys will guide you through the intricacies of property deals in Mexico and ensure your title transactions are secure. We’re here to negotiate on your behalf, resolve disputes before they escalate, and – crucially – avoid any potential legal issues down the road.
Real Estate Closing Timeline
Riviera Maya Title will accompany you at every step of the way and advise on everything you need to know about acquiring or selling property in the Riviera Maya, from the offer letter to obtaining title. This closing timeline shows the major steps of the typical closing process in Riviera Maya, from the offer letter, the due diligence investigation, the use of an escrow account, the review and signing of a promissory agreement, the closing – at which title is exchanged – and the post-closing period.
Step 1 – Offer Letter
At this early step, a buyer or seller might be working solely with their real estate agent. However, touching base with us at the beginning of your journey ensures you are aware of what is to come, your purchase vehicle (if you are a purchaser) or pre-sale processes (if you are a seller), expected timelines and, importantly, provides us an opportunity to review your offer letter before you commit to a transaction. Working hand-in-hand with your chosen real estate agent, we will ensure that conditions on the offer letter are sound and that you are well-positioned to move forward with the process.
Step 2 – Due Diligence
The critical stage of your closing procedure lies in the initial due diligence investigation or title search. We meticulously request, scrutinize, and assess all essential documents from the other party to verify legal standing and soundness of the transaction, ensuring readiness for a seamless title transfer devoid of any complications. Specifically, we ensure that all property records and debts have been properly recorded and satisfied. We will deliver a detailed Due Diligence Report outlining our findings.
Step 3 – Escrow
The moment your offer becomes firm, we will initiate the steps toward opening an escrow account. Though optional, the utilization of an escrow account is paramount to safeguarding both you and your investment, and we strongly advocate its use in your transaction. We work closely with the escrow service provider, ensuring all requisite documents are accurately prepared for signing.
Step 4 – Promissory Agreement
Having concluded a thorough and satisfactory property due diligence process, we proceed to draft and review purchase documents. A Promissory Agreement -where the buyer promises to buy and the seller promises to sell at a later point in time- will establish the terms and conditions of the transaction as well as the obligations of both parties, including a detailed description of the property, purchase price, payment schedule, date for physical delivery of the property, expectations around transfer of title, and in some cases, an inventory.
Tailored to your specific situation, we meticulously prepare, adjust, and review promissory agreements for all involved parties to evaluate and endorse. Execution of documents may take place in-person, though parties may choose to provide their signatures electronically (e.g., DocuSign).
Step 5 – Set-up of the purchase vehicle (for buyers)
Once the Promissory Agreement is signed by both parties, we may begin setting up the purchase vehicle. While Mexican citizens may acquire properties directly in their names, non-citizens have two main options for ownership of property within the restricted zone in the Riviera Maya: they may acquire through a fideicomiso (real estate bank trust) or through a Mexican corporation. (You may read more about the restricted zone in the Q&A section.)
Many buyers acquire property for non-commercial purposes, choose the option of establishing a trust, where a Mexican trust company (in the form of a bank institution) will hold the property on your behalf and for your benefit only. We work closely with the fiduciary services provider, the Ministry of Foreign Affairs, to obtain the appropriate permit to establish the trust for ownership of property in Mexico by a foreigner. We also work with the Notary Public, to ensure the deed is correct prior to your closing date.
Step 6 – Pre-Closing
Mexican law establishes that transfer of title of real estate must be formalized by a notary public, a government-appointed official whose seal must appear in all deeds inscribed onto the public registry. As stated in the promissory agreement, once the buyer’s fideicomiso (trust) is set up, we will work with the notary public to draft the final closing document to transfer title, i.e., the deed or bill of sale. We also work with other service providers to ensure that both legal and financial issues are ironed out in preparation for the closing. At the same time, the Selling party must ensure all pre-closing documents -including payment of property and capital gains taxes- are submitted to the notary public in a timely manner.
Step 7 – Closing
Once all prior steps are completed, the parties will agree on a closing date, within the time period mentioned in the purchase agreement. At the closing, parties will appear in person and read the deed one last time before signing the same before the notary public. Once the deed is signed, the seller will receive payment in full and the buyer will receive possession of the property.
Step 8 – Post-Closing
Once the notary seal is set upon the deed, it will be submitted for inscription to the local public registry. Once the title is inscribed in their system, the public registry will issue a copy of the final deed as registered.
Feel free to contact us for a free consultation so we may offer initial guidance on what works best for you.