After a long and exhausting search for the right property you finally have an accepted offer in Mexico. It is a pre-construction project and it seems to be an amazing deal. You want to ensure that all goes well now that the offer is accepted. However, you need to be careful to not lose your accepted offer and miss out on your amazing deal.
Make sure you are represented by a trusted certified real estate agent. You can check this yourself in the AMPI website agents search area. In Mexico anyone can act as a real estate agent and sell real estate. AMPI is the Association for Real Estate Professionals and it is becoming Mexico´s most trusted method to certify a real estate agent or agency. Having a certified real estate agent gives you some protection you don´t get with a non-ampi member in that the association can become involved should something ever go wrong.
An AMPI agent is experienced enough in the process and is usually ahead in helping with the process. The right agent takes the steps you might not know are necessary to ensure your offer goes well. This means that the agent would have checked documentation on the developer even before he/she suggests to place an offer to purchase. An AMPI agent works for an AMPI agency and has the capabilities to do “due diligence” with a trusted external legal office.
What not to do
In the accepted pre-construction offer you will have deadlines to follow. Usually there is a date to make an initial deposit to reserve your unit. And a deadline for the developer to send a formal contract to sign before sending the agreed amount to formalize the deal.
- Do not delay on initial deposit to reserve your unit. Some projects are very high demand and might have other buyers waiting to take your unit.
- Do no delay on signing the formal contract. This is usually the biggest issue with buyers of a pre-construction property. A formal contract sent by the developer might be poorly written or poorly formatted. Ensure that you are getting what was agreed in the initial offer and sign it.
- Do not ask another attorney to make changes to a formal contract sent by the developer. This causes a bigger issue: Pride. Better to work within the channels already in place to ask for the changes you want.
- Do not delay in transferring your initial amount agreed to formalize your accepted offer. This is the key and in most cases the lifeline to a developer in Mexico. The sooner you transfer this funds to the developer the sooner your unit can be built and delivered.
What to do to
Buying pre-construction in Mexico is now a safe practice that not many consumers understand. A developer cannot begin to construct without proper construction permits. A real estate agency cannot promote a developer´s project without the right documentation. And finally a real estate agent that represents you cannot sell you a product that has not been through the correct “due diligent” process.
- Take your time reviewing the development and understanding the offer you are signing. This will help move things along once you have signed an offer.
- Make sure the real estate agent or his/her agency representing you is as legit as possible. You will depend a lot on this person to get you to the final stage of ownership.
- Understand what steps are required to make sure you become full legal owner of the property you are buying. This will help you ask the right questions.