Seven years ago when Broker Karen Stewart began her real estate practice in San Carlos she says the trust system was an arduous and grueling ordeal. The trust documents had to be completed before a transaction could take place and it could take months and months. Sellers and buyers alike became frustrated waiting for paperwork to make its way through the legal system.
Over several years however, the local Brokers working with the local Notario’s, (lawyers who handle all real estate transactions in Mexico) worked out legal methods of making the process more efficient and creating added protection for both sellers and buyers.
They accomplished this by requiring sellers to sign a Power of Attorney relinquishing all rights to the property to the buyer. For added protection of both parties the Notario then has the seller sign a Will. In the event that something happens to the seller during the process, the Will becomes the legal instrument because the Power of Attorney becomes invalid. The Will also relinquishes all rights in the property to the seller from the buyer and this keeps the process moving forward and out of the probate courts.
What these legal changes have created is a method to close the property sale transaction prior to the finalization of the trust documents. Now, instead of waiting months and months to close on your Mexican dream home closings can occur within weeks. Not only has the system become more streamlined and efficient, these new processes have created better protection for all parties involved in the transaction.
