Closing on a real estate transaction in Mexico, particularly in Puerto Vallarta and Riviera Nayarit, requires a structured process to ensure legal compliance and financial security. Whether you’re a foreign investor or a local buyer, following these steps will help you navigate the closing process smoothly.
This guide outlines the key stages of closing a property purchase in Mexico.
1. Finalizing the Purchase Agreement
Before closing, a purchase agreement (Contrato de Compraventa) is signed between the buyer and seller. This contract outlines:
(âś”) Final sales price and payment terms.
(âś”) Property details, including title and ownership status.
(âś”) Closing timeline and conditions.
(Important Note) Related Guide: Understanding the Notarial & Legal Process for Real Estate Transactions in Mexico
2. Notary Public (Notario Público) Review & Due Diligence
In Mexico, all real estate transactions must be legally formalized by a Notario Público. The notary is responsible for:
(âś”) Verifying ownership and property title.
(âś”) Ensuring there are no outstanding liens or debts.
(âś”) Registering the transaction with the Public Property Registry.
(Important Note) Related Guide: How to Verify a Property’s Legal Status Before Purchase
3. Property Title Transfer & Fideicomiso Setup for Foreign Buyers
Foreigners purchasing property within Mexico’s Restricted Zone (50 km from the coast) must use a Fideicomiso (bank trust). The closing process includes:
(âś”) Requesting fideicomiso approval from a Mexican bank.
(âś”) Obtaining government authorization from the Foreign Affairs Ministry.
(âś”) Ensuring the trust is established for 50 years with renewal options.
(Important Note) Related Guide: Understanding Fideicomiso & Real Estate Ownership in Mexico
4. Payment & Financial Transfers
Closing costs and the final property payment must be transferred before the property title is legally recorded. Important financial considerations include:
(âś”) Escrow Account Payments – Many transactions use escrow services for added security.
(âś”) Closing Costs & Notary Fees – Expect to pay around 4-6% of the property’s value in taxes and legal fees.
(âś”) Final Funds Transfer – Payments must be documented for tax and legal purposes.
(Important Note) Related Guide: The Hidden Costs of Buying Real Estate in Puerto Vallarta
5. Signing the Final Deed (Escritura Pública)
Once all conditions are met, both parties sign the Escritura Pública (Property Deed) before the notary. This step includes:
(âś”) Buyer & seller signatures.
(âś”) Final legal review by the notary.
(âś”) Tax and registration payments.
(Important Note) Related Guide: Understanding Property Taxes & Fees in Mexico
6. Registration with the Public Property Registry
After signing, the notary submits the transaction to the Public Property Registry, ensuring the new owner’s rights are legally protected. This process includes:
(âś”) Officially recording the buyer as the new property owner.
(âś”) Ensuring compliance with zoning and land use regulations.
(âś”) Delivering the final registered title to the buyer.
(Important Note) Related Guide: How to Conduct a Legal Property Verification in Mexico
Final Thoughts: A Smooth Closing Process for Property Buyers in Mexico
Following this step-by-step closing guide helps ensure a legally secure and financially transparent real estate transaction in Puerto Vallarta or Riviera Nayarit. Working with experienced professionals like NuHome Realty Co.® guarantees a smooth and efficient process.
(Contact NuHome Realty Co.) Ready to close on your dream property? Contact NuHome Realty Co.® today for expert guidance and seamless transactions!
Posted by Cathy Rios on
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