Buying Real Estate in Mexico : Escrow Explained

 

If you are in the process of buying a property in Mexico, you might want to consider settling the deal using an «Escrow» service. Indeed, the advantages are numerous.

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But what is an « Escrow » service and why is it interesting?

Definition of Escrow: It is a financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions from both buyer and seller,  or until obligations have been fulfilled by all parties involved in the transaction.

Basically, it means that the buyer and the seller agree on a third party (usually an attorney or an escrow company) to manage an account (escrow account) into which the transaction money will be transferred.

Escrow money is always linked to the terms of the purchase contract and funds are only released based on an “instruction letter”.  That document contains the terms and conditions to follow before the money can be delivered to the seller.

Why is it interesting?

It is a very safe method of payment.  It provides security to the buyer and the seller.

The buyer is ensured that the funds will be delivered to the seller if and only if the latter fulfills all the contractual obligations and terms in the “instruction letter”. If anything wrong happens, the escrow service will keep the money in the escrow account and will return it to the buyer.

For the seller, the use of an escrow service is the guarantee that the buyer has the money to purchase the property. The funds are held in the escrow agreement prior to the conditions being met and upon fulfilling them, the seller will receive the funds.

If you are interested in using such service, ask your real-estate agent for references. As a professional in the business, he/she has all the useful resources in his/her personal network and will provide you with very useful information.

Once you find the escrow company you want to do business with, the 2 documents you will need are:

– The property title (a legal description of the property that will be transferred).

– An identification which can be a passport or a driver´s license.

The company will then draft an escrow agreement, which will be executed by the buyer and the seller. And that escrow agreement is the official document through which the service of the escrow company will be hired.

We hope this Escrow explained article was helpful !  Please call us with any questions you may have.  Judi Shaw | 1 604 628 7247 Direct | +521 984 116 3251 Mexico Cell

Living Riviera Maya Real Estate: Why buy with me?

Photo of Judi Shaw Realtor

Are you a Canadian or a foreigner and you are thinking about buying a property in Mexico, more specifically in the Riviera Maya or around Playa del Carmen…?

You would like to use the services of a real estate agent but don’t know which company to trust or where to start…

You want to have all the information possible and all the services related to an overseas transaction at hand in order to make a trouble free investment. It’s totally understandable and you shouldn’t settle for less.

Look no further, Judi Shaw and her team at Living Riviera Maya Real Estate is the answer! She’s an experienced real estate agent based in Playa del Carmen,  Riviera Maya. They will certainly be a major asset in every aspect of the buying process.

In order to learn more about her, we have asked Judi a few questions (that you may also have)… Her answers will definitely consolidate your decision to deal with her.

1) You are Canadian, Sauder School of Business UBC,licensed in Real estate,…how can do business in Mexico and really help me find the property of my dreams?

Well, first of all, you have the guarantee that I have a degree in business, I have a previous license in real estate in BC with all the training and education and licensing involved.

Not all real estate agents in Mexico have such background. I know how to do my job professionally with the higher standards. Secondly, it means that I understand Canadian (North American) needs and wants better than anyone. Thirdly, I have been living and working here for more than 13 years, I know the market and I keep my knowledge up to date…and NOW I am one of the very few truly licensed to practice real estate in the state of Quintana Roo. According to the new law in 2014, anyone selling renting or administering properties  has to be licensed and only about 20 of the 2000 or so agents are currently licensed. I received my license on Feb 20 2016.

2) What kind of experience do you have in Mexico, is it really worth something?

I was recruited in 2003 from Whistler, BC to the Riviera Maya to take part in the largest launch of pre-construction luxury real estate in the Riviera Maya Mexico, called Rosewood Mayakoba. To date, it is still viewed as a turning point in real estate here in the Riviera Maya. I have experienced, first hand, the boom of Playa del Carmen as a major international destination and real estate market. I have seen its development, I know every aspect of it.  All of my contacts are assets for you.

That was 13 years ago and since that time, I have never stopped being part all major real estate development.

3) How do Mexican competitors see you? And Mexican property developers?

But I am Mexican! I was naturalized as a Mexican in early 2016.   I am well respected by my peers and other professionals involved in the real estate business. I speak Spanish more or less fluently which is a great asset when it comes to negotiation, people don’t see me as a foreigner anymore. No bad surprises due to misunderstanding! In addition, I have a deep knowledge of the Mexican real estate legislation, I can’t be fooled!

4) Do you work alone? Do you have enough time to take care of all your clients?

I have a fantastic team, very dedicated to our clients. We take pride in being there for our clients at every stage of the buying process. My team has very high standards and we offer a very high-quality service. We listen, we understand and…we care about all our clients!

In addition to that, I have built an extensive network of contacts in the industry, including legal support, tax advice, mortgage consulting, immigration assistance, rental and property management connections, and more…

5) What kind of protection do I have if I decide to use your services?

I am affiliated with various professional associations:

  • Member of NAR (National association of Realtors)
  • Member of Luxury Home Marketing Institute
  • Resort and second home property specialist with NAR
  • Transnational referral certificate (TRC)
    Licensed real estate professional in Quintana Roo with SEDUVI, the governing body.

6) Is your expertise only in condos transaction? What if I am interested in investing in a lot or a hotel?

Good question! I have an extensive experience in all different kinds of transactions. Condos, houses, villas, commercial properties such as hotels and investment properties, lots and land to build your dream home. We have access to all properties and more importantly, we know how to handle each type of transaction!

7) What if at some point, I want to sell my property?

I can certainly take care of that. My role is to find the best buyer for all the properties in my portfolio and the best property for each of my client. My website enjoys the first place on google, organically. We list and market homes condos hotels and lots with great success due to our proprietary marketing methods

8) You are obviously well established in Playa del Carmen and know the real estate market there very well, now, what if I am interested in another place?

My company covers all these areas: Riviera Maya, Playa del Carmen, Playacar, Puerto Aventuras, Playa Paradise, Playa Paraiso, Puerto Aventuras, Akumal, Tulum, Yucatan, Cozumel, or Bacalar…

We can certainly help you find your dream home in your dream spot!

I live here love it and own here. Let me show you the same.