As an investor in Mexican real estate, it is vital to consider how your payment or deposit will be held. Escrow services provide a neutral third party which holds the funds in compliance with the instructions of all the parties to an agreement. Neither party may access the funds until all of the obligations of the parties are satisfied.
Mexican lawyers, Notaries and real estate agents cannot legally hold funds “In Trust.” Mexico does not have the Escrow Services which are available in Canada or the US. In Mexico, funds are customarily held in the realtor, developer or lawyer’s personal bank account. The account is uninsured and susceptible to seizure or liens. Although the broker or lawyer will hold your funds with good intentions, their creditors and tax authorities will have access to these accounts. The accounts are not protected as they are i elsewhere in North America.
To secure your deposit of your Mexican real estate purchase, you must use an Escrow Service which is insured and held in a Canadian or American bank in a segregated account. MexLaw is a trustworthy law firm authorized to provide Escrow Services in Mexico and elsewhere in North America.