Points to Remember While Buying and Selling Property in San Miguel de Allende

Posted by Ernesto and Glenn SMA on November 12th, 2018

If you are looking to buy or sell property in San Miguel de Allende, Mexico we recommend you take your time and do your research.  There is a lot of information online about buying or selling real estate in San Miguel de Allende, but when you’re ready to move forward, you will want the assistance of an AMPI certified realtor to guide you through the process.  Having a professional at your side who knows the real estate market and the process of purchasing property can help you avoid costly mistakes and assure that you are getting a good deal.  The real estate market in Mexico is different from the United States and Canada and having an experienced realtor to explain the process is really important.  Additionally, your realtor will introduce you to neighborhoods and options you may not be aware of and to homes for sale that you might not otherwise find.  

As a buyer, when you find the right property for sale in San Miguel de Allende, your realtor will help you draft an offer to buy agreement.  He evaluates the property and helps you determine an amount to offer based on market conditions.  If your offer is accepted, your realtor will draft a document called the compra venta, or the purchase contract.  This is a legally binding contract that spells out the amount to be paid, any contingencies to the purchase such as inspection or financing, and the closing date.  

Ordering an inspection of the property is generally a good idea and can cost between 0 and 0 dollars and this is paid for by the buyer.  Your realtor can help you with scheduling an inspection if you wish.  

Your transaction will be handled by a Notario which in Mexico is a special type of attorney with authority granted by the government to draw up legal contracts and collect and disperse taxes.  You Notario will create a new title for the property that explains the transaction and identifies the new owner.  Included in the title will be an explanation of how the seller is legally entitled to sell the property and that the buyer is the new owner.  The Notario than registers the transaction with the State.  

Expats purchasing property in San Miguel de Allende will need a special permission from the federal government to own property in Mexico and this permission is also obtained by the Notario for a fee of around ,500 pesos.  

Upon signing a contract the purchase San Miguel de Allende real estate, the buyer usually makes a deposit of 10% of the cost of the purchase and this can be deposited into an escrow account.  You need to be prepared to make a wire transfer into the escrow account, which can be done in dollars, and then converted to pesos if the buyer is requesting pesos.  The cost of escrow is 0 US and this cost is shared by the buyer and seller.  At closing, the remainder of the cost of the transaction needs to be in escrow.  The Notario then orders the dispersal of the funds including payment of taxes, commissions to realtors, and funds to the seller.  The buyer of real estate in San Miguel de Allende can generally expect closing costs of around 5% of the total purchase price and this includes the title transfer tax, Notary fees, and various other expenses.  If you have questions please don’t hesitate to contact us. 

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Ernesto and Glenn SMA

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Ernesto and Glenn SMA
Joined: November 12th, 2018
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