MEXLAW Escrow Service Protects Your Real Estate Investment in Mexico
Escrow is a legal process designed to protect the interests of both the buyer and the seller, acting as an impartial third party ensuring security for both sides. That third party should be a trustworthy law firm authorized to handle escrow accounts in Mexico.
Real Estate Escrow
The seller has assurance the buyer is committed to the purchase by placing money in trust as a deposit. The buyer is protected by ensuring the money is held in trust until the seller provides clear title, and all other stipulations that were included in the contract are complete.
The traditional escrow accounts which we are familiar with in Canada and the US do not exist in Mexico. Canadian and American attorneys and real estate brokers may hold funds in trust whereas, neither Mexican Lawyers or Agents are authorized to provide escrow services.
There are Real Estate brokers and attorneys in Mexico who will keep your deposit in a checking account until the deal is closed, this is not a secure process. Not only will your money be combined in the same account as other funds, but the broker, their creditors, or even tax authorities may have access to your funds.
Real estate brokers should use a professional escrow provider, as it takes the financial responsibility away from the agent, avoiding any accusations if either party defaults.
Hire an attorney who will provide an escrow service from Canada or the US for Mexican transactions.
The Benefits of Choosing MEXLAW Escrow Services;
- MEXLAW is comprised of International Lawyers, with extensive experience in Mexican law.
- All Escrow Accounts are administered separately, rather than using the same account for all clients.
- Funds are held in Canadian bank accounts.
- Escrow accounts are protected by professional liability insurance of $1,000,000 per account.
- Experienced in providing personalized escrow agreements for a variety of situations offering a fluid transaction with fewer hassles for you and or your business.
- Arbitration Process, any disagreements will be resolved through a special arbitration process which is included in the escrow agreement.
- Protection against fraud
There are many Escrow Services for transactions between individuals and or companies available through MEXLAW, the most common reasons for using an escrow service are;
- Real Estate Transactions
- Property Rental
- Line of Credit
- International Trade
- Vacation Rentals
- Payment of Fees
- Trust accounts administration
It is not illegal or uncommon for developers to use your deposit to help finance their projects, insist on a fully insured Escrow Service, which will receive the funds “ In Trust” in a segregated account held in a Canadian or American bank.
A Construction Escrow is utilized when purchasing property which is under construction. The funds held in escrow and will be released as the construction progresses. The escrow helps the builder stay on budget, complete all conditions and ensure that expenses for the building are paid on time and in full. Funds held in escrow protects the purchaser by ensuring a construction company does not leave town with the purchaser’s money.
The construction escrow operates with the same benefits of the real estate escrow service.