Here we will mention some comments related to the Purchase and Sale transaction with Domain Reservation in Mexico.
As its name suggests, there are occasions in Mexico in which a real estate transaction may have the characteristic that the sale is carried out, but for various reasons the seller reserves the property (domain) of the real estate, as long as it is not do certain things.
Precisely, under this figure a buyer of a property can receive possession of the property, that is to say that they give him the possibility of having the property under his control, even when some of his obligations, for example the payment obligation, have not been fulfilled. even.
These types of transactions are documented by carrying out the formalization of the contract of sale before a notary public. This contract establishes the conditions, the obligations of the parties; for example, make the payment of the sale of the real estate in a certain number of exhibitions, and establish that as long as all the obligations are not fulfilled on time (for example, as long as the buyer does not pay his pending exhibitions in a timely manner) the reservation of ownership will continue over the property.
The seller, as we have said, can part with the possession of the property under the security that could be provided by his retention of title.
Precisely, when the agreed obligations have been fulfilled, it is necessary to formalize the cancellation of the domain reservation, since as part of the initial transaction this reservation was registered in the Public Registry as part of the transaction.
It is important to continue emphasizing that the Mexican legal system is robust, and there are legal vehicles and mechanisms that allow progress and reach satisfactory results for the parties in real estate projects or highly complex circumstances.
At Tracer Mexico we have been supporting real estate legal and notarial issues for many years. We can gladly help you move forward with whatever you require.
