WHO IS INVOLVED IN REAL ESTATE TRANSACTIONS IN MEXICO?
The following is an outline only, meant to provide you with an idea of what you might expect to happen when you are purchasing real estate in Mexico. There are usually four players involved in purchasing property in Mexico, besides the buyer and the seller: A real estate company (or estate agent), the buyer's lawyer, a bank and a Public Notary. Transactions outside of the restricted zone do not involve a bank since it is not necessary to establish a real estate trust in those areas. Otherwise the transactions are much the same.

In a real estate trust, the seller of the property, or trustor (el fideicomitente) irrevocably transfers title of the property to the bank. The bank, who acts as trustee (el fiduciario) and holds title to the property, is obligated to administer the property only for the benefit of the buyer or beneficiary. The buyer, or beneficiary (el fideicomisario) is entitled to use, enjoy, lease, or sell the property held in the real estate trust without limitation whatsoever. All four are helpful in their respective areas in assisting with real estate transactions. Assuming that no short cuts are taken, and the four parties are appointed by recommendation there is very little to fear from the purchase process.

A Mexican attorney should be involved to draw up contracts and to review the conditions and terms of sale. Additionally, an attorney can do a title search and point out any problems or alternatives a buyer may have. The buyer should always have his or her own attorney rather than using the attorney of the seller or some attorney used by a real estate company free of charge. As the old saying goes, you get what you pay for, and usually if someone's services are offered free of charge you are probably paying for them in some other way. A licensed Mexican attorney should always be consulted, and should be able to produce a "cédula profesional." This document is a registered license to practice law in Mexico and includes a photo of the attorney and his signature. To be sure that an attorney is licensed in Mexico, a foreign buyer should ask to see the attorney's license, or have the attorney's license number included in a retainer agreement before employing any services.

American attorneys are not licensed to practice law in Mexico and should not give advice on Mexican Law. This refers to individuals who are licensed to practice law in the United States, and not merely individuals who are citizens of that country. There are currently very few Americans who are licensed to practice law in Mexico. The fact that a person is licensed to practice law in the United States in no way allows him or her to practice law in Mexico: Mexican or United States law.

Besides formalizing your real estate transaction, an attorney can be very helpful in saving you money. This is because attorneys are involved in many different transactions and have contacts with banks, notaries, and the Mexican government on a regular basis. Because of this they are aware of the most competitive cost and fees involved in a transaction and can make sure that the buyer is given the best possible prices. An attorney can also inform the buyer regarding his or her legal options and by doing so can make sure that no opportunities are missed: tax planning considerations, closing costs which should be paid by the seller, and ways of taking title to the trust rights which make sense for the particular circumstances of a specific buyer. Very often one piece of good advice can save the buyer thousands of dollars in tax savings or other savings when the buyer eventually sells the property.

When looking for an attorney it is important to remember that any Mexican attorney can normally handle a real estate transaction. The buyer is not limited to only the local attorneys where the property is located. All real estate transactions involving a trust are governed by federal law. This means that all such transactions are carried out the same way regardless of the locations of the property. As in the US, when a transaction is agreed in principal there is a requirement to lay down a deposit (which is non- refundable), at which point the initial agreement would be drawn up. Then it is basically a case of the parties involved hammering out a deal and finance as soon as possible, and then complete the transaction.