Find out all about the real estate purchase contract below and get security in your transactions.
Are you thinking of selling or buying a property? Remember that one of the main advantages of acquiring a house, an apartment, a commercial property or even land, is that the property will gain a capital gain over time.This is when your money can overcome the natural economic phenomenon of inflation. In order to sell the property where you live or any other property you own, it is necessary that you keep yourself informed about the local regulations, as well as all the paperwork and documents involved in the process. Discover below all about the purchase contract for real estate and act safely to protect your assets.
Also known as a document for the sale of property between individuals, a contract for the sale of real estate is a legally binding document that specifies a type of financial transaction in which a seller transfers property to a buyer in exchange for a specific monetary amount.
It is necessary that the purchase and sale contract has unique characteristics so that it can be executed before a notary public and later on, the notary public can register it before the Public Registry of Property and Commerce.
The sales contract can be used by individuals and corporations, as long as the transaction is the sale of new or used real estate.
The public deed in which the purchase and sale contract was executed is commonly known as the Title Deed and is the document that proves the owner's possession of a specific property.
It is often easy to confuse the two terms. The correct answer is no, it is not the same procedure.
While a promise of sale does not alienate the property and, therefore, does not change ownership, the purchase and sale carries out the transfer of ownership of the property in an official manner before a notary and before the Public Registry of Property.
The contract is divided as follows:
There are several factors that determine the real value of real estate in Mexico. It is always advisable to adhere to legal parameters that can support us in such valuation, such as:
Cadastral Value: it is found in the property tax bill and it is an objective valuation according to the value of the land and construction. This is influenced by the location, total square meters of land and square meters of construction, use and age of the building.
Commercial Value: this value is determined by an appraiser specialized in commercial appraisal.
In most cases, the appraisal that is most relevant to the final transaction is the commercial appraisal.
Transaction Price: In addition to the exact amount agreed upon for the payment of the property, the payment scheme or form of payment must also be specified, as well as the remainder, interest and total term agreed upon, if necessary.
Conventional Penalties: In the event that either or both parties fail to comply with the obligations agreed upon in the contract, this section establishes the corresponding fines and penalties.
Remember that if the property is financed by a loan, the lending institution may charge upfront payments and penalties in a scenario where it is necessary.
Contracting additional services: remember that it is important to review all external factors that influence the property, such as maintenance payments. This section should also specify other expenses derived from the transaction, such as commissions, appraisal, taxes, credit opening, among others.
At Nolab we hope this information will be of great help to increase your security in the process of buying and selling a property. Remember that we have the most exclusive catalog of properties in several countries around the world. Discover the home of your dreams with us! Contact us at and get personalized information.
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Alfredo Obregón is the co-founder and CEO of Nolab, a real estate platform focused on investment, sales, and property management across international markets.
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