What you need to know when you close a deal.
You found it; you have found the property that is right for you. You have made an offer and it has been accepted. What happens now?
Now, it is time to close the deal.
The parties typically involved in a real estate transaction in Baja California Sur are: Buyer, Seller, Real Estate Companies, Closing Agent, Escrow Agent, Notary Public, among others.
There may be a variety of other service providers involved (such as the bank, appraisers and land and public registry offices), but the Closing Agent always contacts these, as well as stays in constant communication with the city, county, state and notary offices throughout the entire process.
The Closing occurs when the deed transferring ownership of the property is signed in the presence of the Notary Public by both Buyer and Seller or their legal representatives. At this point, possession is granted to the buyer and money is released from the escrow account to the seller. After the signing, taxes are paid and the title deed is submitted for filing. In Mexico, a Notary Public is an attorney appointed by the government and carries with it a fair degree of weight in terms of being jointly liable for ensuring veracity of information, retaining taxes and other similar steps during the transaction.
For the handling of funds, it is recommended that you use an independent escrow company. The Closing Agent (be it a broker, independent closing company or notary) communicates and works locally with the escrow agent. Funds must be transferred via wire transfer and usually the escrow agent has a bank account in the United States.
Each closing is unique and varies on a case-by-case basis. For a smooth and fast closing process, it is recommended that you talk to your listing agent regarding all the paperwork required and keep in mind the following:
The closing process in Mexico is a little different from the one in your hometown.
- Be sure that your trust deed records the actual price that you paid for the property at the time of your purchase.
- Make sure all substitute beneficiaries are included in the Trust and that their names are correctly spelled.
- If you are going to build on a lot, make sure that your construction license is based on the amount that you will be investing in the project. Using a lower value might save you some money now, but when you sell your property, Capital Gains tax will cost you more.
- Read all documents carefully before signing them, or have them read and explained to you.
- Once the closing is completed, notify all utility services of the change in ownership, so that all new bills are in your name.
Rancho La Cachora, Todos Santos
Using a competent, professional and well established Closing Company, particularly one familiar with the specific market in which you have chosen to invest in your real estate in, is key. Ask for references, track record and affiliations to larger companies.
Got more questions about the closing process and the services Pacific Closing Company can provide you? Send us an email at email@example.com