Quick Guide to Purchasing a home in Mexico

1. Research and Budgeting:

Begin by researching the real estate market in the specific area of Mexico, such as Puerto Vallarta. Understand property values and market trends. Some sites may not have up-to-date information- I recommend contacting a local realtor to set you up on a portal with your specific property type/needs.

Establish a budget, considering not only the property cost but also additional expenses like taxes, legal fees, and maintenance.

2. Find a Real Estate Agent:

Locate a reliable and experienced real estate agent in Mexico. They will be your guide throughout the process. Coldwell Banker La Costa on Olas Atlas is where you'll find me.

3. Legal Considerations:

Understand that, in certain areas, foreigners cannot directly own land. Instead, a bank trust called a "Fideicomiso" is established to hold the property on your behalf. You still own the property, can sell the property or will it to your heirs. Just the trust is held at a bank. Your agent or legal advisor will help set this up.

4. Open a Mexican Bank Account:

To facilitate transactions and payments, you may want to open a bank account in Mexico. Your real estate agent can assist you with recommendations. This does not have to be completed right away. Opening an account in Mexico isn't as easy as it is in the states. When I purchased I used an escrow company instead.

5. Property Search:

Work closely with your real estate agent to identify properties that match your criteria. Visit potential homes and neighborhoods to get a feel for the area. There are many different colonies in Puerto Vallarta. Each one is very different. Your agent should help you determine the area that is right for you.

6. Negotiate and Make an Offer:

Once you find a property you like, your agent will help negotiate the terms with the seller. This includes the purchase price and any other conditions. Before the offer is made, your agent should provide you with the cost of closing so you can enter the agreement knowing exactly what cost will be.

7. Legal Due Diligence:

Engage a notary public to conduct a thorough investigation of the property. I recommend always using a professional. They will check ownership history, any outstanding debts, and verifying the property's legal status.

8. Purchase Agreement:

When negotiations are finalized, a purchase agreement (Contrato de Compraventa) is drawn up. This legal document outlines the terms and conditions of the sale. It is signed by both parties.

9. Pay the Deposit:

Typically, a deposit (enganche) is required at this stage. This amount is usually around 5-10% of the property's value. With condos you usually have a few days before sending in the deposit - this assures you have sufficient time to review the condo docs and other important information regarding the property.

10. Finalize the Transaction:

With the help of your notary, complete the necessary paperwork to transfer ownership. Pay the remaining balance, and the property title will be officially transferred to you.

11. Registration and Closing:

The final step involves registering the property with the Public Registry of Property and Commerce. This step ensures the legal transfer of ownership is recognized.

12. Enjoy Your New Home:

Once all legal processes are complete, you can move into your new home and enjoy your life in Mexico. Remember, working with experienced professionals, especially a reputable real estate agent and a qualified notary, is crucial to navigating the legalities smoothly.

Will Hutt

Coldwell Banker La Costa

Olas Atlas

+1-239-691-0782

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