mountains

Closing Process for Both the Buyer and Seller

Offer Execution

  • Obtain copy of executed offer to purchase from client's realtors
  • Obtain copy of all counter-offers (if applicable)
  • Request pre-closing costs from client (wire transfer or check)
  • Provide seller with preliminary capital gains tax (ISR) calculation.
  • Need to be clear if the Buyers will be assuming the Sellers fideicomiso, get a new fideicomiso, or do not need a fideicomiso

1st Approach to Client

  • Obtain copy of client's passport, driver's license and visa (if applicable)
  • Obtain general data of client: full name, nationality, place & date of birth, marital status, occupation, billing address, phone & fax #, e-mail. If client is a company, we request a copy of the corporate documents (i.e. articles of organization and legal authority representative.
  • Obtain general data of client: full name, nationality, place & date of birth, marital status, occupation, billing address, phone & fax #, e-mail. If client is a company, we request a copy of the corporate documents (i.e. articles of organization and legal authority representative.
  • Obtain copy of client's utility bills not older than 2 months (Only power, gas, water & phone bills).
  • Provide client w/ information for a Power of Attorney (POA) form in case he/she/ cannot execute the final public deed personally. Also Apostille information with regards to obtaining letter of Apostille for the POA
  • Provide client w/ basic steps for closing including the bank document and any POA documents.
  • Provide client w/ good faith closing estimate and contract with the closing agent.
  • Provide client w/ our contact information and information for the Escrow & Closing Agent including their bank wiring instructions.
  • All closing costs must be paid before closing

Attorney Review

  • Obtain copy of property title or fideicomiso (bank trust) from Seller.
  • If property is within a condominium regime, obtain copy of condo regime deed.
  • If seller is a Mexican corporation or an LLC, obtain copy of articles in corporation, POA deed and ID of legal representative.
  • Obtain copy of construction manifestation of the property in order to make sure that the construction is duly and correctly recorded at the Cadastral office.
  • Obtain certificate of no liens from the Public Registry.
  • Obtain certificate of no debt (property taxes) from Municipal Treasury. Seller must pay property taxes up until time of closing.
  • Perform an official appraisal of the property, as required by the law.
  • If the seller's title is a fideicomiso, draft the letter of instructions and work with the seller on getting it signed. Submit letter of instructions and complete closing package to Mexican fiduciary. Seller must have fideicomiso annual fees paid before closing including the last year if it falls after the closing date. The banks do not prorate annual fees.
  • If seller will not appear at closing, draft the POA form for seller, and work with him/her to have it duly notarized and apostilled.
  • Perform Spanish translations of the U.S. POA form and the apostilles (if applicable)
  • Provide seller with preliminary capital gains tax (ISR) calculation.
  • Seller must have value on construction either on the title or in a manifestation of construction.
  • Seller is usually responsible for cancellation cost on his/her fideicomiso.

Escrow Account

  • Determine if an escrow account needs to be opened (depending type of transaction). If yes, parties need to execute escrow agreement.
  • Make sure that the Buyers funds entering escrow come from the account name that he/she is using to purchase the property.
  • Draft escrow agreement and get the parties’ signatures.
  • Require down payment from purchaser (wire to escrow acc.). Obtain escrow number and statement from escrow agent.
  • Get all parties (sellers, agents, brokers, notary…) banking information and prepare Disbursement Instructions and Know Your Customer applications (if necessary) for payments.
  • All funds must be in escrow at the time of closing.

Closing

  • Deliver closing packet to notary.
  • Make sure that the notary gives the corresponding preventive notices.
  • Provide seller with definitive capital gains tax ISR if applicable and obtain notary's approval.
  • Review the final draft of transfer deed before it is send to the fiduciary bank. Send out comments & corrections to notary.
  • Prepare closing costs statement for the buyer, and settlement statement for the transaction.
  • If there is an escrow account, draft the disbursement instructions, circulate them and obtain the parties' signatures.
  • Coordinate execution of transfer of property deed and final payment (transfer of funds or check).
  • Appear at the Notary's office to accompany clients to sign the final deed, or sign it on their behalf (using POA).
  • Make sure all necessary facturas (legal invoices) have been obtained on behalf of the buyer and the seller.

Post-Closing

  • Record transfer of property deed at the Cadastre Office.
  • Record transfer of property deed with the Public Registry, and pay recordation fees.
  • Deliver to client the original transfer of property deed with recordation data, exhibits and invoices.
  • Return to client any remaining funds previously provided for the closing expenses.
  • Get title insurance policy for client, if applicable.