From a perspective of what is best for the Buyer and The Seller:
The US, Canada, and Mexico all have different federal, and state laws. Real Estate is very much influenced by the laws and customs of the state where the property exists. All countries have a method of selling a property and listings are sometimes formal and sometimes informal. In current times, we use paper contracts, digital contracts, and even a blockchain.
In our area of the western beach coastline of Mexico, we work with buyers and sellers from all three countries. Our approach is a hybrid, as different cultures negotiate to buy or sell differently.
The heart of the transaction is if both parties agree on price and terms, they agree to a transaction. How we get to that stage of property transfer and receipt of payment to the seller varies very much by country, and local government.
Canadians use notaries and escrow or an attorney to hold funds as a third party for the benefit of the buyer and seller and to release funds when the transfer of property is legally complete. Americans do the same, but their notaries are not able to transfer properties, and they are not attorneys as they are in Canadia and Mexico. Americans also commonly have a mortgage company paying the funds that the buyer has qualified for to reduce his downpayment. These transactions are done with escrow holding funds from buyer and lender. At closing, money is disbursed to the seller and the buyer has the responsibility of paying and following the mortgage terms.
Mexicans currently do not have as many mortgage products to assist in a purchase. Banks in Mexico providing mortgages are the safest companies to use. More sales are cash from family or other resources and private so there are not liens of mortgages on the escritura or deed of the Mexican buyer. The differences in negotiating and due diligence vary, also.
Americans and Canadians want to make a lower offer to see what the seller says back. They are reluctant to make a full offer in the beginning. Sometimes, there is not second chance, so better to make an offer amount for the property at an amount they would not want to lose the property to a competitor.
The Canadian and American purchase contracts as a hybrid here from the Mexican offers to purchase. Our hybrid offers give the buyers time to have an inspection and legal review of the property including condo regime and financials of the HOA if any type of condominium structure. After parties have an accepted offer, it is subject to due diligence within a certain amount of time.
My experience with Mexican buyers is they offer a price, and if the price is accepted by the buyer, the first thing they want to see is the escritura and to know the seller has the legal right to sell. Then, a more detailed contract is drawn up. Mexican sellers and buyers do not usually want escrow, but to pay directly to the seller, a deposit, and then the balance once they go to the notary together. They will not expect a third party to be holding any of the purchase funds. Somehow, we all get through the majority of issues that can come up with different nationalities negotiating and buying properties.
This article is based upon consumer protection in Mexico, current practices, and my personal experiences. I recommend that each potential buyer or seller of real estate conduct his own due diligence and review.
