There are certain points which must be considered before taking a property listing in Mexico. First, you should obtain a copy of the ESCRITURAS (Deed) from the seller, a copy of the PREDIAL (tax assessment), a clear LIBERTAD DE GRAVEMEN (Encumbrance) certificate, an USO DE SUELO (Use of Land) certificate and find a local cooperating broker. Perhaps most importantly, you should obtain the NAR Certified International Property Specialist (CIPS) designation and complete the Doing Business in Mexico (DBIM) course. Both would be very beneficial to provide a smoother transaction and better service to your client.
Before taking a listing, it is very important to confirm the ownership of the property. This can also be done using a copy of the ESCRITURAS (Deed) and PREDIAL (Tax Certificate). This allows confirming the legal description of the property and, most importantly, confirmation that the property taxes had been paid on the property. A copy of the LIBERTAD DE GRAVAMEN (Encumbrance) Certificate shows all liens and interest in the land. USO DE SUELOS (Land Use) Certificate is commonly used in most real estate transactions to confirm the use of land as a residential or a commercial property. It is important to get a clear utility certificate to show that the water has been paid and there are no outstanding bills. This is done because in many places, they don’t file liens and titles are not searched like they are here in the states.
Second, a local cooperating broker is an essential part of working with international transactions. The cooperating broker will assist you in processing the file with the Notario. They can assist in showing the property, assist in the negotiation process, but most importantly, it is always beneficial to have a knowledgeable cooperating broker that knows the area where the property is located. Furthermore, it provides better service to your client and is also less stressful for both parties.
The CIPS designation and DBIM course have both played a very important part in my success in the global real estate arena. This education has allowed me to expand my business across the border and opened my eyes as to how business is done in other countries. These designations are the basis of an international real estate transaction.
These are just of few of the items needed to get someone started on taking an international listing. We have to consider that here in the United States, the title company does the title research work. In another country, however, things are done differently. That is why is very important to research and prepare before listing a property from another country.
Edna Corona is Broker/Owner of DELCOR International Realty, 2011 Co-Chair of the HAR International Council Advisory Group and TAR International Committee member, 2009 FIABCI-Houston Chapter President and member of AMPI.
