As an investor in Mexican real estate, it is vital to consider how your partial payment or deposit will be held. Escrow services provide a neutral third party which holds the funds in compliance with both parties, and neither party may access the money until all obligations of both parties are satisfied.
Neither Mexican lawyers nor real estate agents are certified by a government authority, and they can not legally hold funds “in trust.” Mexico does not have the escrow services which are available in Canada or the US. In Mexico, funds will be held in the realtor, developer or lawyer’s bank account, the account is uninsured and susceptible to seizure or liens. Although the broker or lawyer will hold your funds with good intention, their creditors and tax authorities have access to these accounts. The accounts are not protected as they are in the rest of North America.
To secure your deposit on 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.