If you are making an offer for real estate in our market of Puerto Vallarta-Punta Mita, as a foreigner there are probably questions you want answered about the property itself or its legal paperwork before you commit yourself further.
Your agent may or may not discuss the use of contingencies of the offer with you. Here are some pointers on what you may want to include in your offer.
• Do you want to have a physical inspection of the property? Do you want a survey?
• I strongly recommend qualified review of the legal papers of the seller such as his escritura and condo regime with bylaws, if applicable.
• The language in the offer regarding your contingency period is very important. Do you want the contract to say that unless you accept the reports or results of your due diligence, the offer will become null and void and the parties will have no further obligation to each other? If you do want this, then the contract has to say it.
We do not have standardized contracts in Mexico nor do we have a requirement of a certain level of education or competency from real estate agents. Assuming that you have safeguards in place of legally approved contracts or licensed agents can put you at a disadvantage. Carefully read the contract the agent gives you. You can add language to the offer and/or consult a legal opinion from a Mexican attorney with what you want in the offer.
Sometimes language in an offer states that, if there is no objection or comment made in writing by the buyer after an inspection (or other contingency), you as the buyer will have accepted the condition “as is” and are expected to close. If you are not aware of your obligation to respond in writing, and you have already sent in your deposit, you may have a problem. You may be in default of the agreement and owe the deposit as damages to the seller.
You can have a successful closing and be very happy with your purchase. Please realize that you need to be aware you are in a foreign country. Ask questions as if you know nothing about the way things are done here.
This article is based upon legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer or seller of Mexican real estate conduct his own due diligence and review.
Harriet Cochran Murray, Director of Cochran Real Estate, is a seasoned Real Estate professional both here in Puerto Vallarta, Mexico and in the United States. Harriet has served in many capacities as a board member for the local Real Estate Association AMPI (AMPI is the national association of real estate professionals). She is also a member of FIABCI and NAR in the United States. Harriet’s expertise and experience in the Real Estate and especially in the Mexican market makes her Viewpoint blog articles both informational and intriguing. Harriet is an Agent who specializes in getting the best deal on the right property for her clients. Visit her website at www.casasandvillas.com and Check out her Real Estate Listings.
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What you need to know when making offers
