Buying pre-construction in Mexico step by step
Buying pre-construction in Mexico as a foreigner can by complicated if you do not know the steps to follow. We strongly recommend you get with a certified real estate agency to help you in this process. A certified agency in Mexico must be an AMPI agency. AMPI is the National Association of Real Estate Professionals in Mexico, that … since 1956, has gathered under laws and codes of ethics and conduct to create a dependable, trustworthy, and efficient real estate environment in Mexico.
It is better if you, as buyer, are prepared and understand the steps to buying a pre-construction property. Here are the steps your real estate agent in Mexico takes to secure you a pre-construction property:
Make a formal offer
Every developer has a form already made to simply type the buyers information and price. It is signed and sent to the developer for approval. Most pre-construction projects come with a payment plan that allows you to shave off from the listing price but this depends on the project.
Reserve your unit
Once you get a formal agreement signed by both sides you will need to deposit a reservation amount. This amount varies depending on project. Remember that the amount goes directly to the developers account and it is always refundable within 30 days.
Review formal contract to be signed
Every developer has a purchase contract with basic clauses related to the purchase of the property. Usually you get a few weeks to review the contract and sign it. Make sure that what you agreed on in the formal offer is better understood in this contract. Also, make sure that the correct legal information is used. For example, you must be allowed to review the deed of the property. And, the correct person must sign the document. Do keep in mind that this is a private contract signed between you and the person named in this project. It does become legal once signed. It is very rare that this private contract gets signed in front of a notary. It can be done but, developers do not want to deal with this step.
Send payment
After signing the formal contract you send payment agreed to the developers account. In most cases the developer uses your payment to build and finish the project.
Wait for completion of project
This is the hard part. Depending on the stage the project is in, you must be patient until the developer is done with your unit and notifies you in writing of a delivery day.
Send final payment
Once you get a notification letter indication a delivery day it means that you should prepare to send final payment as agreed in the formal contract.
Move in
Yes. you can move in right after sending your final payment. The developer must have a permit that allows people to move in.
Work on getting a correct deed in your name
Throughout this process you should have looked at how you can get this done. Remember that this is a separate process. It is your responsibility to get the property you buy in your name. In the formal contract signed make sure it states that the developer must provide the documentation for you to take this final step. Sometimes the developer takes time to get the documents needed because the notary public has to provide such documentation. Make sure you always ask for an update on this.
It is best if you work with a closing coordinator that you trust or simple go to a notary public for help. For better results go to the notary public mentioned in the deed the developer shows you.
Note that these are your closing costs fees by the notary public and could be of up to 8% of the final sales price. But, usually that percentage is lower.
Also understand that this is when the developer or person acting on the developers´ behalf has to be physically present at the notary public assigned to sign the deed in your name. A date is set for both parties to go sign such deed. The end result should be a singed deed properly recorded in public records by the notary and an original copy of this deed given to you within months.
