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What is the Purchasing Process in the Riviera Maya?
In this post I want to go through the purchasing process and give an overview of the costs associated with buying a property in the Riviera Maya.
The purchasing process is similar between presale and resale however there are some slight nuances so in going to explain the process for both.
Presale
The majority of presale developments have a selection of payment plans available offering discounts. These payment plans are split between an initial down payment, payments during construction (usually monthly) and payment upon completion. The discounts typically start at 3%, with larger discounts available for larger down payments. Usually, the minimum down payment is 30%. An example payment plan would be a 30% down payment, 50% paid monthly during construction and 20% upon completion with a 3% discount.
Once you have decided your payment plan, you submit a signed offer letter and a $5000 reservation fee, which will block the unit for a certain number of days, usually 20 days. The $5000 is fully refundable up to the 20 day period and is subtracted from the down payment. At this point (or even preferably before) you hire a local real estate lawyer. We have recommended lawyers and all initial consultations are free so you can review a few and decide which one is best for you. Next you will be required to submit the following documentation and review the promissory contract (with your lawyer) from the developer. Once both parties are happy with the contract, you sign the contract and make the down payment (less the $5,000 reservation fee). You will need to make the payments from the same account, so please bear that in mind when making the initial $5,000 reservation fee. You then make the agreed monthly payments and final payment upon handover and deed signing with the notary, which your lawyer will facilitate. The initial process from submitting the offer letter to paying the down payment should take no more than a month and then the time to completion depends on the construction time.
Resale
With a resale, the process is very similar. Once you have decided on your dream property you submit an offer letter and if your offer is accepted you make an initial payment (usually $10,000) to block the unit and take it off the market. You will then be asked to submit the same documents and your lawyer will draft a promissory contract. At the same time, your lawyer will start the due diligence on the property to ensure that all the documents are in order and that there are no outstanding liens. Once the promissory contract is drafted it will be sent to the sellers for review and once both parties are happy you will sign the contract and make a down payment, usually of 30% less the $10,000 initial payment. Before you sign the promissory contract, your lawyer will need to confirm that everything is in order with the property. Your lawyer will then facilitate the deed signing with the notary. At deed signing the remaining payment is made. The whole process usually takes about 2 months assuming all the property documents are in order.
I hope you found this helpful and if you have any questions, please do reach out to us. In my next blog I will outline the closing costs, thanks and have a great day!
