CLOSING PROCESS
Understanding the Real Estate Closing Process
The closing process for buying property in Loreto is unique compared to what you may be used to in the U.S. or Canada. It’s a detailed, multi-step procedure that involves several legal and financial steps to ensure everything is in order for a smooth transfer of ownership. Whether you’re buying your dream vacation home or making an investment in paradise, knowing what to expect can make all the difference.
KEY STEPS IN THE CLOSING PROCESS:
Making an Offer
Once you’ve found the perfect property, your real estate agent will help you submit an offer. This document outlines the purchase price, terms, and conditions, such as contingencies to protect your interests.
Escrow Agreement & Initial Deposit
After your offer is accepted, you’ll enter into an escrow agreement and make an initial deposit, typically 10% of the purchase price. This is held securely by a third-party escrow company.
Hiring a Closing Attorney
A closing attorney is essential in Mexico to handle due diligence, title examination, and the coordination of all parties involved (escrow agents, notaries, trust banks, etc.). They ensure the process is legally sound and smooth.
Fideicomiso or Mexican Corporation Setup
If you’re a foreign buyer, the fideicomiso (bank trust) is a common ownership structure that allows you to legally own property in Mexico’s restricted zones, such as coastal areas like Loreto. Your closing attorney will manage this setup.
Final Payment & Closing Day
Before the official closing date, you’ll make your final payment, and your closing attorney will confirm that all legal and financial requirements have been met. At closing, you’ll sign the final deed, and the property ownership will be transferred to you.
Recording & Receiving Your Final Documents
After closing, the deed is sent to the Public Registry, where it is recorded. You will receive a digital copy of the fideicomiso within days of closing, and the original after it’s fully processed by the registry.
Expected Timeline
On average, the closing process in Loreto takes about 120 days. Be prepared for potential delays due to paperwork or holidays, and remain flexible with your timeline.
For a more detailed breakdown of each step, Closing Costs estimate, and helpful tips to ensure a smooth closing process, download the complimentary Ultimate Loreto Real Estate Guide. This comprehensive resource covers everything you need to know as a buyer, including common pitfalls to avoid and expert advice for navigating real estate in Loreto.
