LEI Mexico FAQ’s

Protection of the purchaser interest
A “notario” is a government appointed lawyer who ensures the proper transfer of all real estate transactions. The notario is responsible for registering the beneficiary’s deed transferring rights with the appropriate government agencies. If ownership of the property is ever disputed, this is the ultimate proof of ownership.

The purchase/sale document, likely contains a description of the property, price to be paid to the seller, and any special terms or conditions negotiated in the sales process. It does not provide valid notice to third parties unless it is recorded in the Public Registry office of the municipality in which the property is located however.

Title to the rights of the property remain with the last legal registered owner until the buyer is formally named as a beneficiary in a public document before a Mexican Notary. While the seller holds title to the property it is his asset.

To ensure proper registry of the property, an official appraisal of the property, notarized bank instructions, a property tax certificate and certificate of no liens must be obtained. Sellers Capital Gains Tax and Buyer's Acquisition Tax (2% of the sales price) must be paid in conjunction with registering the deed by both the tax office (Treasury) and the Public Registry. If this process is not completed, the buyer is not fully protected.