You have selected your home and you are now ready to enter into a Purchase and Sale Agreement. You will be asked for a 10% down payment on the home you are purchasing.

Contingencies such as “financing” or “subject to selling your house in the Unites States” are not normally allowed in Mexico. However, you may, and we recommend an inspection contingency on any home you are about to purchase in Mexico. This inspection should be completed within 15 working days. Prior to closing, schedule a final walk-through inspection to make sure the repairs have been done and that the property is exactly as contract says it should be.

The 10% deposit money will be held in escrow in a non-interest bearing account at Bank of America in San Antonio, Texas. The balance of funds (90%) due at closing should be deposited in the same escrow account two to three days prior to closing. Upon signing the Deed, these monies, less commission and taxes (if any) will then be distributed in accordance with seller’s instructions. Please review carefully the penalty section of your contract. The penalty should never be more than 10% and this penalty is applicable to both Buyer and Seller depending on the circumstances.

The Notary (Notario) in Mexico takes the place of the “title officer” in the USA. He will review the title report. The title must be “clear” to ensure that you do not have legal issues regarding your ownership. If you have any doubts as to holding title in Mexico, we recommend you purchase Title Insurance from Stewart Title Company who has international offices in Mexico City and Houston Texas.

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