10 Steps to Buying Real Estate In Puerto Vallarta
Buying property in Puerto Vallarta or Rivera Nayarit can be incredibly exciting. But it can also be a bit of a challenge if you’ve never purchased property in a foreign nation before. That’s why we’ve created this guide to help you prepare for your transaction.
Here are 10 things to keep in mind when you get ready to buy property in Puerto Vallarta and
1. Define Your Budget
Will this be a cash purchase or do you need help with financing? How much can you realistically
spend and still have enough each month to pay for your other expenses? Before you begin to
shop for properties, have a number in mind of what you can actually afford. You don’t want to
fall in love with your dream home only to realize after the fact that it is not within your budget.
2. Find a Realtor
Working with the right realtor can be the difference between having an awful experience and a
stress-free one. It can also make a difference in the price you pay for your home.
Our experienced agents are knowledgeable, caring and great negotiators. We’ll go above and
beyond to make sure you have as stress-free of an experience as possible!
3. Find Your Ideal Property
When you work with the right realtor, they will listen to your needs and desires and show you
only those properties that are a great match. They will also have access to a full inventory of local properties.
We have full access to the largest selection of properties in Mexico and inventory updates every 5 min. Take a few moments to look through our listings and get in touch with us.
Once you find a property and decide to make an offer on it, we run a Current Market Analysis to
make sure you are not over paying for the property and we use that information in our
4. Sales Price and Terms Are Negotiated and Agreed Upon
This is the part where working with a top real estate agent really pays off! Inevitably there will be some back and forth on pricing and other terms through a Letter of Intent document. This is a
normal part of the buying process. We are highly skilled negotiators who always work hard to
get our clients the absolute best deals possible.
5. Agent Will Submit an Offer to Purchase
Once you have found your dream home and agreed on the Letter of Intent terms and price, it’s
time to put in a formal offer to purchase. This document will become legally binding if the seller
accepts your offer. Once your offer has been accepted, and all conditions in the purchase offer
have been satisfied, we can then schedule a Property Inspection, if all is good we take an initial
deposit payment of 10% from you. If there is something you are not satisfied within the Property
Inspection report then we go back to the negotiations or do not proceed to the formal Offer to
6. Agent Creates a Sales Contract
Once everything has been hashed out and terms and price have finally been agreed upon, it’s
time to draw up the final sales contract. This contract will include all items, dates, clauses and
inclusions needed. After this has been signed by both parties this time you will deposit your
good faith money and sign the “Promise to Purchase” agreement. This will establish an escrow
into which your monies will be deposited.
7. Bank Trust or Corporation Is Established
Back in 1917, the Mexican Constitution clearly stated that no Non-Mexican citizen could own
Mexican real estate within 50 kilometers from any Mexican coastline or 75 kilometers from the
borders. But, over the years, the Mexican government saw that much of the world opened their
markets to foreign investors. And many foreign investors are attracted to beautiful natural
Since it was too complicated to change the constitution, amendments were established, and these amendments allowed foreign investors to buy beachfront properties provided they use either a bank trust (for residential properties) or a corporation (for non-residential properties) for the transaction.
8. A Clear Title is Researched and Issued
Before buying any property, it is important to make sure the title is free and clear of any liens or encumbrances. Unpaid property taxes are an ongoing lien that cannot be removed. There are also title restrictions that may stay with a property if it has easements, condo
restrictions or other municipal agreements. We’ll research to make sure your property’s title is free and clear.
9. Closing at the Notario
Closing a real estate transaction in any country can be complicated. But closing a real estate
transaction in a foreign country, such as Mexico, can be a bit overwhelming. But we’ll be there
to make sure everything goes as smoothly as possible.
To manage all of the costs associated with your purchase, we will have opened an ESCROW
account. Along with your “good faith” money, we will also deposit your down payment, loan
proceeds and closing costs prior to closing. The remaining 90% is due a week before closing
into the escrow account. At the time of closing, these funds are disbursed.
10. You Own a Property!
We now hand you the keys to your new home and it’s time to celebrate. Perhaps some
margaritas on your new deck or balcony while watching the sun set. And when you wake up the
next day, you’ll have to pinch yourself to believe you now own property in paradise!
Sure, there are quite a few steps in buying a property in Mexico, but we’ll be with you every
STEP of the way, making your transaction as stress-free as possible!