When you purchase a property in a different country more often than not you won’t be hundred percent familiar with their real estate laws. Therefore, the logical step is to contract a reliable broker who will guide you through all the steps to buying your dream holiday home.
As is widely known, Mexico has become a real estate hotspot for Americans and Canadians. Cheaper prices, better climate and more buying options have lured hundred of thousands of North Americans to the gateway to Latin America.
With Mexico’s real estate market growing at a rapid rate, there’s always the danger of dubious firms taking advantage of foreign buyers especially who don’t speak Spanish.
There are two important legal arrangements to cover you in case of getting swindled. One is title insurance which ensures that your new property belongs to you, and that you are protected against future claims on the property related to past matters.
The second is third party escrow. This service acts as a neutral disbursing agent between buyers and sellers on a particular real property transaction and disburses following instructions from both parties.
"Right now we're finalizing the details for a project in Tampico which is about 300 kilometers from the Texan border," says Grupo Mall's President Julio Noval. "We're also looking at Chiapas to develop eco-tourism ideas. We see the area as being extremely attractive for nature-lovers," he added.
In other words, the bank that you have elected to hold your money to buy a property will never relinquish that money to the seller until you have the protocolized deed by the notario publico and the transfer of the real property interest. This is when you truly own the home you bought and not when you have been given the keys.
Eduardo Sanchez of First American, a Fortune 500 company specializing in the surety and title insurance industry, says it vital for foreign buyers in Mexico to contract both title and escrow services.
“There have been too many stories of American buyers getting ripped off when it comes to buying a holiday or retirement home in Mexico. For peace of mind, these services are a pre-requisite for any overseas buyer,” says Sanchez.
There are various banks in Mexico and abroad that offer escrow services. Unfortunately, Mexican banks will simply hold your money without investing the money into interest bearing accounts for the benefit you. It is also common for banks here to use the funds internally which often results in a delay of the subsequent transfer or refund of the deposited amount.
A U.S. title insurance company, such as First American, has a fiduciary obligation and responsibility as the escrow agent. They will never act outside of the fully negotiated and mutually agreed agreement between the buyer and seller. Therefore, the thousands or even millions of dollars you’ve worked so hard to save up all these years will never be in jeopardy of falling into pernicious hands.
Recommended U.S. Title Insurance Companies
First American – Managing over US$ 2 billion assets worldwide, First American is a highly-recognized corporation that handles thousands of overseas property purchases in Mexico.
Stewart Title - Provides title insurance and related information services required for settlement by the real estate and mortgage industries through more than 9,500 policy-issuing offices and agencies in the United States and international markets.