Know your rights when buying a property in Mexico

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The following article about knowing your rights when buying a property in Mexico was published by PROFECO, the Mexican Government’s Consumer Protection Agency, and has been translated into English. You can read the original article in Spanish here: https://www.gob.mx/profeco/es/articulos/conoce-tus-derechos-al-comprar-un-inmueble?idiom=es

For specific questions about Mexican Real Estate Law or for help in the legal issues around buying a property in Mexico, visit our Real Estate Law page here.

Know Your Rights when buying a property in Mexico
Image courtesy og PROFECO at https://www.gob.mx/profeco/es/articulos/conoce-tus-derechos-al-comprar-un-inmueble?idiom=es

Author: Federal Consumer Procurator’s Office

Publication date: May 16, 2019

Acquiring a house or apartment is an important desion, your work and effort will be invested there. Advise, ask and investigate. We tell you what your rights are in this aspect.

As regards the characteristics of the property, you must receive the following information:

  • Extension of the land, built surface, type of structure, facilities, finishes, accessories, place or places of parking, areas of common use with other properties, percentage of undivided where appropriate, services that account and general physical condition of the property.

When the acquisition is on credit, you must have knowledge of:

  • The type of credit you will hire, make a projection of the amount to be paid, including the interest rate, commissions and charges.
  • Expenses that can be generated independently of the sale price, such as deeds, taxes, appraisals, administration, opening of credit and research expenses, among others.

The contract must include the following guarantees, at no cost to the consumer:

  • The terms will be counted from the actual delivery of the asset
  • On structural issues: 5 years
  • In waterproofing: 3 years
  • In those elements that are not structural or waterproofing issues that are considered in the contract: 1 year

In case you assert the guarantee and the defects or faults persist, the provider has the following obligations:

In serious defects or faults:

  • Deliver a bonus of 20% of the amount indicated in the contract as the price of the good; and
  • Make all the necessary repairs immediately.

Note: Serious failures are those that affect the structure or installation of the property and compromise the full use or safety of it; or, prevent the consumer from using, enjoying and enjoying it.

In slight defects or faults:

  • Make all the necessary repairs immediately; and
  • Deliver 5% bonus on the value of the repair.

Trading

The contracts must contain among their clauses the following:

  • Description of the good object of the transaction.
  • Technical and material characteristics of the structure, facilities and finishes of the property.
  • Total price of the operation, form of payment and the additional expenses that the parties must cover.
  • Warn applicable conventional penalties in case of non-compliance, as well as guarantees for compliance and reimbursable expenses.

Presale

The supplier must announce the complete construction executive project and also:

  • The respective model and, if applicable, the property shows.
  • Report on the existence of liens that affect the property, which must be canceled at the time of signing the corresponding deed.

Both contracts

For both cases, the provider must make known:

  • The state in which the payment of public contributions and services is found.
  • The authorizations, licenses or permits issued by the corresponding authorities for the construction.
  • The information related to the technical specifications of security, land use, type of materials used in the construction and basic services with which the property has,