Email This Post Email This Post Print This Post Print This Post

Escrow and Closing Services

Escrow; Third Party Security

When purchasing a property one of the most important issues to address for both a buyer and seller is how and under what conditions the funds will be safely transferred. In an international transaction this issue is even more important as it is often complicated, as both the purchaser and seller may not be familiar or comfortable having funds deposited in an unfamiliar jurisdiction, or with an unfamiliar attorney or bank.

What is an Escrow Agreement?

An escrow agreement is a written instrument which by its terms imports a legal obligation. The buyer, seller and the escrow agent all sign the escrow agreement, which states the conditions upon which the deposited items/funds may be distributed. The escrow agreement also stipulates, how, to whom and for which amounts the deposited funds/items will be distributed.
The escrow agreement cannot be changed unless all parties agree in writing. The delivery in escrow is without reservation of power to recall; which means that an escrow agent must act according to the agreed-upon escrow conditions and disbursement instructions.

Involving a third party, such as an international title company, who can provide an international escrow agreement and international bank accounts, provides a cost effective solution.

Stewart Title can act as an independent escrow agent for real estate transactions throughout Mexico. Stewart’s involvement gives both the buyer and seller additional comfort, knowing that a non-partisan party who maintains both local and global presence is monitoring the deposit.

Everyone Benefits

Stewart’s escrow services provide security to both parties to the transaction; the seller retains a property interest to assure performance by the buyer and the buyer obtains security that the property will be his/hers if the conditions in the escrow agreement are met. Because both buyer and seller agree to the escrow terms before the transaction, each party is clear of how the transaction will transpire, and when funds will be distributed and to whom. Stewart’s escrow agreements can be applied for any type of real estate transaction, and can be modified to address issues like construction draws, real estate commissions, attorney/notary fees, etc.

The escrow services begin with an escrow agreement which is a written instrument which by its terms imports a legal obligation. The buyer, seller and the escrow agent all sign the escrow agreement, which state the conditions upon which the deposited funds can be distributed. The escrow agreement cannot be changed unless all parties agree in writing.

Stewart’s escrow agreements can be applied for any type of real estate transaction, and can be modified to address issues like construction draws, real estate commissions, attorney/notary fees, etc.

Requirements for utilizing the escrow service:

  1. Review, complete and sign Escrow Agreement (i) and Service Application accompanied by: (i) this is the agreement that state the conditions upon which the deposited funds are held on behalf of the parties by the Escrow Agent.
  2. *Copy of buyers’ passport and drivers license, or alternative government issued ID;
  3. Review, complete and sign the Disbursement Instructions (ii) ; (ii) this document states the beneficiaries and the amounts to be distributed to each party once the conditions have been met.
  4. Deposit the initial amount to be held in Escrow with Stewart Title, in accordance with the instructions mentioned in the Escrow Agreement, wiring instructions are this purpose are provided on page #2 of the Escrow Agreement.

*If the purchaser is a Corporation

  1. Incorporation Documents;
  2. Power of Attorney for the legal representative of the company, this representative should sign the Escrow Agreement and Service Application;
  3. Copy of legal representative’s passport and drivers license, or alternative government issued ID;

**If a foreign corporation, incorporation documents must be Notarized, apostilled and translated by a translating expert.

Closing Coordination

Stewart Title acts as a single point of contact for the closing documentation to guide you through the Mexican real estate closing process. Stewart Title will manage the details of your closing, including coordinating with the local attorneys, banks, realtors, lenders (if applicable) and Notario. Courtesy of our organizations’ privileged business alliances with selected local Notarios’ the costs of this service are met by the office of the chosen Notario, ensuring Stewart’s specialist advice is available throughout the entire closing process at no additional costs beyond those advised by the Notario.

Requirements for utilizing the closing service

  1. Request Stewart Title to obtain an itemized Notario’s closing costs quotation on your behalf;
  2. Wire 50% of the advised closing costs in advance of the commencement of services. Wiring instructions for this purpose will be provided;
  3. Wire balance of the closing costs 1 week prior to formalizing of your transaction.

Closing Coordination

When providing this service, Stewart Title becomes the point of contact for closing your real estate transaction, making it easier and faster for you.

  • Transaction Management for real estate closing details;
  • Central point of contact for closing needs;
  • Coordination with Notary Public;
  • Bank trust processing;
  • Facilitate escrow services;
  • Third party security for deposits/documents;
  • U.S. accounts available for deposit.

We will provide all the necessary assistance and coordination in order to close your real estate transaction, drawing up all the necessary legal documents and coordinating the parties involved in the closing, such as:

  • Notary Public: responsible for formalizing the legal documents by which the property is transferred;
  • Banks: as trustees when needed;
  • Appraiser;
  • Real Estate Broker;
  • Lawyers; and
  • Agents processing SRE Permits; among others.

Courtesy of STEWART Title in Mexico. We are an authorized representative of STEWART Title for title insurance.

Important note: IdeaCOM facilitates tips about legal and other matters as a service to our clients. Content provided here is for information and convenience purposes only and is not to be considered legal or other advice or an endorsement of products or services of any of the links. Details, costs and fees mentioned, links and veracity of content of external sites and companies are subject to change without notice and can be changed without our knowledge. For pricing, costs and information about third-party services, please contact those companies directly. For legal advice or help with any other matters, as well as for a quote related to your service or case, please contact one of our experts and make an appointment to discuss your personal or corporate matters on an individual case-by-case basis. For a complete list of our FAQs, tips and information, please consult our site map.

Tags: , , , , , , , , , , , ,


Fatal error: Call to undefined function wp_related_posts() in /homepages/23/d187487723/htdocs/ideacom/wp-content/themes/green-apples/single.php on line 29