As every body knows, the Closing Process starts with an “Offer to Purchase”.
The “Offer to Purchase” is a document where the buyer presents to the seller his willingness and desires to buy a property, with all the conditions that he wants to include in this transaction.
A common problem in Playa del Carmen Real Estate is that the buyers present this “Offer to Purchase” document including just the price at which they are willing to buy and maybe the payment schedule. Of course this is the most important part of the negotiation, but a sale includes many variables that need to be administered and addressed since the beginning to achieve a successful transaction.
Here I will include some of the issues that are important to add to an “Offer to Purchase” document. But of course, this is not limitative. A good Realtor will guide you through this document and will help you to include on it all the factors that you need to make a safe transaction.
a) Of course, the first and most important theme to include in the “Offer to Purchase” document is the price and the payment schedule. How much are you willing to pay and in which date you can handle this payments. Commonly, you will include a first small payment like “Ernest Money” to show the seriousness of your offer. Then you will pay the “First Deposit” with the signing of the “Promissory Contract” and then the “Balance” at the signing of the deed and possession of the property. But of course, you can propose what ever you feel comfortable with. It is your right to propose all what you need to feel comfortable with the transaction, as is the right of the Seller to feel free to accept what you are proposing or come back with a “Counter-Offer” changing some of your propositions. b) Second, you need to advise to the Seller if you want to use an Escrow Account in the Real Estate transaction. Here in Playa del Carmen real estate market, sellers are not used to using Escrow Accounts and sometimes take a little bit of negotiation to make the Seller understand that having the money in an Escrow Account is a win-win situation. Again, a good Real Estate Agent will help you to handle this negotiation with the Seller.
c) Al the contingencies that you are handling in this Real Estate transaction: if it depends on the approval of a loan; if you are willing to hire a Title Insurance; if you want to make a professional inspection of the property before the closing; etcetera.
All this is important because both parts need to know the willing of the other part before starting the “Closing Process”. Many deals have fallen through because of a simple lack of communication between the parts.
Ask your Real Estate Agent to help you prepare a complete “Offer to Purchase” document and ask him to advise you about all the Mexican specifications that maybe you are not familiar with.
Hope this is useful for you.
Sincerely,
Bea
