Every step of the way, fast and efficient title closing
Title Solutions provide closing legal assistance to individual buyers and agents/brokers, by advising, guiding and managing all stages of real estate transactions until the recorded title is delivered.
This is the most important step when acquiring property and the basis of a real estate transaction with safeguard. I involves investigating the legal status of the property, understanding if it holds any lien, encumbrance and/or any other limitation or debt. Once due diligence has been conducted dutifully, the buyer is then able to make important decisions related to the purchase.
There are multiple iterative stages to be able to close a real estate transaction once the due diligence is finalized and the legal status of the property is duly established. The lawyer will draft the purchase and sales agreement that describe the terms, conditions and obligations assumed by the parties involved, such as: purchase price, payment schedule, delivery date, timeframe to transfer title, description of property, among others.
Once the purchase agreement has been drafted, reviewed and accepted by all parties involved, the execution of the contracts can take please, either in person, or remotely through DocuSign eSignature, which is a document signing software that you can use to legally—and securely—collect approvals and is used to replace lengthy manual signing processes, and speed agreement process.
In México, the promissory purchase contract needs to mature into a final document called the deed, or bill of sale. Such document must be formalized with a public notary and requires coordination with other service providers. In addition, a commercial appraisal is required, as by law, Mexican property taxes are based on the highest of three factors, the purchase price, the assessed value, and the commercial appraisal. Finally, if foreign buyers are required to formalize the transaction through a Trust (Fideicomiso), it's necessary to consult with the trustee bank and jointly work on the establishment of the trust. In addition, to allow the bank to hold title on behalf of the buyer, a permit must be obtained through the ministry of foreign affairs.
Once all parties involved and service providers have concluded the necessary steps to produce, review and approve the draft of the deed that contains the Trust, the parties will jointly agree on a closing date. its important to keep in mind that the closing date should be within the timeframe mentioned in the purchase agreement.
On the date of of closing, the parties will agree to meet on a certain place, read one last time the deed that contains the trust and execute the same in front of the notary public. At this moment, the purchase price must be paid in full and the buyer would receive physical possession of the property.
In this practical, step by step legal guide for buyers, sellers and real estate agents or brokers, you will learn the most important aspects and stages of buying or selling a property in Mexico, including title closing process, escrow and financing.