Follow up is an important part of any process, and real estate purchase in Mexico is no exception. Let’s picture this scenario: you closed on your property, you and the seller signed your trust deed before a Notary Public, everything went smoothly so you might think you can sleep like a baby because there is no risk involving your real estate purchase, right? Well, not quite. You can celebrate that you have purchased a property in Puerto Vallarta, but the work is not over, and the purchase process still needs to be totally concluded so that your property is out of risk. After closing, and in order to finish the entire purchase process, the Notary must record your trust deed in the Public Registry of Property. Carrying out this final stage is extremely important but sometimes neglected by some Notaries and closing coordinators.
So what can happen if my trust deed is not recorded in the Public Registry of Property?
If your trust deed has not been recorded or if this recording process is taking too long, your property is still at risk. The main purpose of having a purchase deed recorded in Public Registry is to make the rights of the buyer effective against third parties. These third parties are usually creditors of the seller. If the seller still appears in the Public Registry as the owner of your property, anyone suing the seller can put a lean and eventually foreclose on the property. Furthermore, if your purchase deed is not recorded, the seller can sell the property twice and if the second buyer records his deed before you, you lose the property.
And don’t forget to ask for your invoice …
Part of the follow up required after closing is making sure that you get your electronic invoice from the Notary. This electronic invoice is required to make deductions when you sell the property so if you don’t have it, you will be paying a lot of money in capital gains tax. It is only after getting this electronic invoice and a notarized copy of your trust deed duly recorded, that you can consider your real estate purchase totally concluded.
