Not having the complete documentation can jeopardize the sale or facilitate fraud.
At the beginning of 2024, real estate fraud increased by 11%, according to the Citizen Council for Security and Justice.
Every year in our country, there is a demand for over 450,000 homes, according to the consulting firm Tinsa, which, in contrast to the market supply, is excessive. In other words, there are more buyers than sellers. However, the buying process can take longer than expected or may even fail to be completed. While this can be the responsibility of the client, it also happens when the seller does not have the complete documentation.
But the risk is not only that the deal may not close, but also the possibility of encountering fraud, as most frauds occur during the acquisition. According to the Citizen Council for Security and Justice in Mexico City, this year, the fraud rate increased by 11%. For the real estate sector, these scams represent losses of 600 million pesos, according to the Mexican Association of Real Estate Property (AMPI).
For this reason, it is very important to have all the necessary documentation when selling your house. Below, we list the main documents you need to have to protect yourself and avoid unpleasant situations.
Prove Your Ownership:
The first step is always to prove that you are the sole owner of the property. This is done through the deeds, which are essential for a safe transaction. Although you can sell a property without them, you risk being dispossessed of the property. If there are multiple owners, all of them must agree and give their written consent.
Identify Yourself:
In conjunction with the previous point, you should have an official identification, preferably with a photograph. This way, the buyer can verify that the name on the deed matches the person they are negotiating with. If you use intermediaries or do it through an agency, it is still necessary to do so to build trust.
Ensure Your Property Has No Legal Liens:
Another important document is the certificate of freedom from encumbrances, which proves that the property has no legal burdens such as mortgages or inheritance issues. You can obtain it from the Public Property Registry (RPP), and it is valid for 20 years, although it is recommended to present the most up-to-date version possible.
Show That There Are No Pending Payments:
One reason a potential buyer might lose interest in your property is unpaid bills. If you did not mention outstanding service payments from the beginning in order to reach an agreement, you will need to take care of these payments and present the receipts showing the bills are cleared.
Ensure There Are No Property Taxes Due:
In addition to utilities, one of the essential taxes that must be up to date is the property tax, as failing to do so can result in fines or even foreclosure. If there is any debt, you can negotiate it by offering a price reduction, for which you will need the most recent paid receipt and all overdue bills.
Clarify Your Marital Status:
Although this point might seem unnecessary, it is actually quite important. If the seller is married or in the process of divorce, it can influence the agreement because, depending on the marital regime, assets are typically divided in case of separation. To avoid confusion, make sure to have your marriage or divorce certificate on hand, as applicable.
Transfer the Possession Rights:
Lastly, but very importantly, either before or as soon as you hand over the property to the new owner, you must also grant them the notarial power of attorney. This document certifies them as responsible for any legal procedure related to the property. If you do not provide it, it could be understood that you are still the owner.
These are the main documents you should have when selling real estate. With them, you will not only avoid legal issues, but you will also help speed up the acquisition process. While these are the most crucial documents, you may be asked for others. However, before providing any information, make sure it is truly necessary. Whether you go through a real estate agency or handle it yourself, it’s best to consult a specialist.
Guía rápida para Comprar Inmuebles en CDMX
Coldwell Banker México: coldwellbanker.com.mx
https://mudafy.com.mx/guias/post/documentos-que-se-necesitan-para-vender-una-casa
https://tuhabi.mx/blog/se-puede-vender-casa-sin-escritura
https://www.tinsamexico.mx/panorama-del-sector-inmobiliario-en-2023