How to Buy Real Estate in Puerto Vallarta – The Notary

The Malecon Extension

One of the most important elements in the Puerto Vallarta real estate buying process is the notary.

Notaries in Mexico are a little different from the notaries you may be used to at home.  Rather than being someone who took a course and is now licensed to certify documents, notaries in Mexico are at the top of the legal food chain.  They are empowered by the federal government of Mexico to oversee real estate transactions, even collecting taxes on the government’s behalf.  They are the highest authority short of a court of law with regards to real estate transactions and are indispensable when buying real estate in Puerto Vallarta.

So what does this mean to you?

The Puerto Vallarta Malecon extension

Notaries handle all the legal aspects of the closing process.  They perform the title search, making sure the property you want to buy is legally ready to be sold, that there are no liens or encumbrances, that your future Puerto Vallarta house is not standing on Ejido land, and that the person selling you your beach front condo is, in fact, the same person that owns it.  They create the title documentation and when the transaction is done and the house is yours, the notary will file that and all other appropriate documentation with the public registry and other government agencies and ultimately provide you with the title (called “escrituras” in Mexico).

You as the buyer are responsible for paying the closing costs in Mexican real estate purchases.  This means you are responsible for paying the notaries fees as well as other taxes and fees associated with the transaction. As a general rule, you can expect to pay about 5% of the purchase price in closing costs… so a home costing $100,000 US dollars would typically require about $5,000 US dollars in closing costs.  Many people consider these closing costs to be high, but when you consider that that same $100,000 home would pay only about $50 to $100 dollars (I’m being very conservative here) in property taxes annually, you can see that things more than even out in the long run.  One of the great things about buying real estate in Puerto Vallarta is the low holding costs.

Since you are paying for the notary, the choice of which notary to use falls on you, the buyer.  This is another place where your real estate agent will come in handy.  They should be able to direct you to reputable notaries and get you 2 or 3 quotes to help you shop the best deal.  There are cases where the seller may negotiate to use a specific notary for various reasons… this is OK so long as the notary they are suggesting has a good reputation for working professionally.  You will want to get a few estimates from other notaries and ask their notary to match the best rate before agreeing to use them.

As you can see, notaries play a huge part in the real estate purchase process… In fact, their participation is required by law.  If someone tries to talk you into doing a real estate deal in Puerto Vallarta without the assistance of a notary, run the other way.

I’d like to hear your thoughts, please leave a comment below and share with your friends!