Buying and Selling in Merida
A brief history of buying and selling in Merida
Understanding the dynamics of the real estate market in Mexico is important to understand how Mexican real estate has developed over the last several decades. The middle class that has emerged in the last 40 years has provided for a more robust market. Along with the growing foreign interest in living and investing in Mexico, the housing market is becoming more dynamic and secure for investment and ownership. Understanding the history of real estate in Mexico and finding the best realtors in Merida will help you find what you are looking for.
Historically, Mexico was a country of only two large economic groups: the rich and the poor. The poor rarely owned real estate and the rich were likely to subdivide what property they had and pass it onto their children. Typically, many countries would do this, including those who owned large acreages of land in the United States.
The current real estate market is still relatively new in many regions of Mexico. For this reason, in most of Mexico, there is no MLS system, no real estate licensing requirements for agents, no governmental rules, limited institutional financing and few large organized real estate companies or real estate professional organizations. The exceptions to this current situation are Mexico City, Monterrey, Guadalajara and many coast resort areas like Puerto Vallarta, Acapulco, and Cancun, where there are limited MLS’s, larger brokerage firms and functioning professional organizations.
In the Yucatan, a whole set of other rules apply. This area has been separated from Mexico for decades. Rules, regulations and new business practices have evolved here more slowly than in other regions of Mexico. When two individuals come together in the Yucatan in an agreement to buy/sell real estate the parties have created a “promise” to buy/sell real estate. The buyer’s notary typically draws up the agreement. Upon signing, the buyer gives the seller a deposit to hold to seal the deal. In return, the seller provides the notary with current title documents, tax statements, lot plan, personal data and other relevant information.
This practice is still used in the Yucatan and it is not unusual for a seller to require this contract with the understanding that the seller will hold the deposit and should the buyer fail to buy the property, at no fault of the seller, the buyer forfeits the deposit. If the seller refuses to sell, the seller must return the original deposit and pay a penalty to the buyer.
Understanding these nuances in Mexican real estate can keep you from encountering any surprises going forward. Ownership of property in Mexico is unique from, say, the United States. And real estate in the United States is different from other parts of the world as well. Look for the best realtors in Merida to help you obtain the perfect real estate in the Yucatan for you. Merida Property Management has the experience, knowledge, and resources to make sure you have a seamless and easy buying/selling process.