7 July 2008 162 views One Comment

Mexico real estate investment differs from US in several critical ways. Not understanding these variances can cause a lot of money to go down the drain. But is it necessary to find professional help such as a Mexican attorney to guide you through the process?

There are several advantages to hiring an attorney to represent your interests in a Mexican real estate transaction. Firstly, if you don’t speak Spanish, it would be quite difficult to complete a legal transaction when all the contracts are written in Spanish. Secondly, an attorney will be able to clearly explain all applicable laws that would affect you and make sure you avoid catastrophic mistakes due to ignorance of Mexican laws. Real estate agents do not have to be licensed in order to practice in Mexico which means basically anyone can be an agent, even con-artists. The Mexican regulation of real estate transactions is very passive, although they do require a public notary, or notario publico, a government attorney who examines the documents and checks public records for the status of the title. However the notario does not have any legal responsibility for title defects.

If you are dealing directly with a seller it is highly recommended that a lawyer or real estate broker be consulted before signing any papers or handing over any money according to Tom Kelly, author of Cashing in on a Second Home in Mexico. It would behoove you to choose an independent attorney that can provide proof of their license rather than a lawyer provided by the real estate brokerage.

The other side of the argument is that you don’t necessarily need one if you already understand the key Mexican real estate laws and have a bilingual agent to assist you. Finding a reputable agent and acquiring title insurance could lessen the need for an attorney. The trade off you will have to consider is if the added risk is worth the money you are saving. It depends on how risk adverse you are.

By the way, this site is not a replacement for a professional attorney, although we can provide you with useful information for navigating the process of property acquisition. If you are a veteran in Mexico real estate, please share your thoughts and whether you chose to hire an attorney.