Present a signed, written offer on a desired property. At this point Buyer should present all identifications necessary. Please remember that all signatures must be identical to your passport signature (not name).
Once both parties sign off on the purchase offer, the Buyer should be ready to make a full 10% (Ten Percent) wire transfer to the escrow account with Secure Title Latin America plus $700 or Global Escrow Solutions $650 USD for escrow fees. As well as the costs (if applicable) for the following: a) title search and report, b) confirmation of property points, c) home inspection, d) half of the closing costs to begin the fideicomiso/escritura and appraisal process. The wire transfers for title search report, confirmation of points and home inspection will be sent either directly to the individual’s account providing that service. The closing costs will be sent directly to the closing attorney, Lic. Manuel Humberto Frias Orozco.
The funds for the property should be sent to an already agreed upon escrow account with Secure Title Latin America. The wire transfers for title search report, confirmation of points and home inspection will be sent either directly to the individual’s account providing that service. The closing costs will be sent direct to the closer, Lic. Manuel Humberto Frias Orozco. This should take place within 5 (Five) working days of both parties signing the purchase offer.
Buyer must fill out a fideicomiso application, a “Know Your Client” document, and a privacy notice for the bank. The Buyer also needs to provide the closer with a bank account where the funds will come from as well as a proof of residence for their primary address which can be in the form of a utility bill (electric, water/sewage, phone, etc.). Same holds true with a Mexican National except the fideicomiso application.
Buyer must notify the closer if they will be present for the closing (no later than 30 days from closing). If not the closer will prepare a letter instructing the bank that they will not be present for closing and a power of attorney for someone down here to sign on the Buyer’s behalf (at an extra cost). Both the bank letter and the power of attorney will need to be signed in front of a foreign notary and be accompanied with a letter of Apostille.
If the Buyer is going to obtain title insurance, then they must fill out an application from the title insurance company.
Once all contingency clauses from the purchase offer agreement have been met, the Buyer will present written notice to the closer and Seller that they have accepted these contingencies and at this point the money shall become nonrefundable and the closer can begin the fideicomiso process.
The entire closing process usually takes between 60 (Sixty) to 180 (One Hundred Eighty) business days from the start to the day of signing. The 90% (Ninety Percent) balance for the property as well as the remainder of the closing costs and the title insurance costs should be sent via wire transfer 5 (Five) business days prior to closing.
Two to three weeks before closing, the closer will prepare disbursement instructions for Secure Title Latin America. The Seller will provide their bank information and then all parties and representatives (including Power of Attorney, Corporations, or Living Trusts) must fill out the “Know Your Customer”, document for Secure Title Latin America and return this document signed with the signed disbursement instructions.
Once both parties sign off at the closing, the title needs to be signed by the Bank and then the Notary. At this point all taxes need to be paid on the property which for the Buyer includes the 2% (Two Percent) acquisition tax. The closer will facilitate this payment as well the registration of the new title.
Remember that all titles and fideicomisos are presented in Spanish and that if the Buyer requires an English translation before closing then the closer should be notified to prepare this request with a certified translator and the Buyer will be charged a cost of approximately $20 USD per page. There are approximately 30 pages in a fideicomiso.
The Buyer should refer all questions during closing to the broker or closer. The closing process is a very essential process and there will be different variables that arrive throughout the process. This is why we have our own in house closer, Lic. Manuel Humberto Frias Orozco, so we can assist you and answer all questions during this process. Please take advantage of his knowledge and the knowledge of our broker, Richard Friend, and agents.
It takes six to eight weeks for the new title or fideicomiso to come back from the Public Registry. The document will be waiting for you upon your next trip down or we can send it out to you via FedEx.
