The Role of the Closing Agent in a Mexican Property Transaction

Every transfer of title to a Mexican property MUST, by law, be made before a Mexican notary public.

The notary is legally responsible for the review of the prior deed and the tax and lien certificates. The notary must draft the new deed, calculate the taxes due and pay them. Also very important, the notary is accountable for his/her actions through the state and national notary associations.

A good Closing Agent can be an attorney with expertise in title transfers, or it can be a company with experienced closing officers and attorneys on its staff for consultations in the event there are title issues. More and  more  there  are closing agents throughout Mexico. They are specialists in titles and transfers.   

The role of the closing agent 

An   experienced   Closing   Agent   is   a   key   person   in   the   real   estate purchasing  process.  Hiring  a  good  Closing  Agent  who  understands  the  ins  and outs of the Mexican legal system and the requirements of the law as it relates to foreign investment will make the real estate transaction go much smoother. 

The  closing  agent  should  be  involved  in  drawing  up  a  promise  contract and  reviewing all  documents including  title,  certificate  of no  encumbrances,  and  permits.  A  closing  agent  can  also  order  a  complete  title search  before  the transaction  reaches  the  notary  public,  which  will  save  the  buyer  valuable  time and money should there be a problem with the title. 

Finding a Trustworthy Closing agent

Clients   should   never   hesitate   to   ask for details   of   the professional experience  and  references.  This  is  even  more  important  when  the  real  estate agent  in  the  transaction  is  representing  BOTH  buyer  and seller. This  is  dual agency which is still common in Mexico. In this case the buyer should definitely seek out his/her closing agent.

Questions to Ask a CLOSING AGENT:  What exact services will you provide? What  areas  of  law  or  real  estate  are  your  specialties?  Can  you  provide  an estimate  of  taxes  and  closing  cost  expenses?  Will  you  order  or  conduct  a  title search?  Can  you  provide  at  least  three  references?  Do  you  have  experience with  transfers  to  foreigners,  Mexican  bank  trusts  and  foreign  investment?  How long have you been offering Closing Services to the public? How do you handle the funds you receive for closing expenses? Do you prepare specific instructions for the disbursement of funds?

Closing Agents do not have to be specifically licensed in Mexico to be able to supervise the transfer process of Mexican property. It is important to be cautious and  do  the  same  homework  as  when  researching  a  real  estate  agent.  Ask  for credentials and references. The more experienced the staff and in-house counsel the   company   has   in   handling   foreign   investment   transactions,   the   more protection and safety the buyer should have in a Mexican property purchase.