Congratulations! Your offer to purchase a home in San Miguel de Allende has been accepted!
This is an exciting moment. You’ve found a property you love, negotiated a price, and reached an agreement with the seller.
But now comes a very important question:
What happens next?
For American and Canadian buyers, purchasing real estate in Mexico may seem unfamiliar.
The good news is that the process is organized, straightforward, and relatively simple when you have an experienced real estate professional and a trusted closing team guiding you.
Let me walk you through what to expect, from the moment your offer is accepted until the day you receive the keys to your new home.
Step 1: The Home Inspection
Before viewing properties, take time to understand what matters most — location, lifestyle, investment value, or future growth. Knowing your priorities helps narrow your search and ensures that every choice aligns with your long-term goals.
Step 2: Revewing the Inspection Report and Negotiating Reparis
Once the inspection has been completed, we will review the report together.
It’s important to understand that an inspection report is not automatically a list of repairs the seller is obligated to complete.
Most homes, particularly older properties, will have some maintenance issues or items that require attention.
In San Miguel de Allende, where many properties feature traditional construction methods and historic architectural elements, this is especially common.
Depending on the findings, we may negotiate certain repairs, request that specific items be addressed before closing, or explore other mutually agreeable solutions.
The seller is not necessarily obligated to correct every item identified in the inspection.
However, many issues can be discussed and successfully negotiated.
Once we have reached an agreement regarding the inspection findings, we can remove or satisfy the inspection contingency, according to the terms of the offer, and move forward with the purchase.
Step 3: Preparing the Buy-Sell Agreement and Escrow Agreement
After the inspection contingency has been resolved, the next step is preparing two important documents:
● The Buy-Sell Agreement: This is the formal purchase agreement that outlines the
terms and conditions of the transaction, including the agreed purchase price, closing
date, obligations of both parties, and any negotiated repairs.
● The Escrow Agreement: This establishes the terms under which your funds will be
held and ultimately distributed as part of the transaction.
Both documents will be prepared in English and Spanish so that you can understand what you’re signing.We use DocuSign, which means that these agreements can generally be signed electronically.
You do not need to be physically present in San Miguel de Allende just to sign these documents.
This is particularly convenient for buyers purchasing a home while still living in the United States or Canada.
Step 4: Sending Your Earnest Money to Escrow
Once the Buy-Sell Agreement and Escrow Agreement have been executed, it’s time to send your earnest money deposit.
In our typical transactions, the initial deposit is 10% of the agreed purchase price, plus half of the escrow service fee.
You will generally have three business days after signing the Buy-Sell Agreement to send these funds, as specified in your contract.
An important detail for our American buyers is that the escrow company we typically work with maintains a bank account in the United States.
This means that, when sending funds from a U.S. bank account, you can generally make a domestic wire transfer rather than an international wire.
Your money will be held by the escrow company and distributed according to the signed
Escrow Agreement.
We will provide the necessary escrow instructions and help coordinate the process.
Step 5: Preparing the Legal Documentation for Closing
While your earnest money is being held in escrow, our closing attorney and notary team will begin working on the legal documentation necessary to complete the purchase.
This includes reviewing the property’s legal records, coordinating the necessary certificates and documentation, verifying outstanding obligations, and preparing the paperwork required for the transfer of ownership.
For foreign buyers, another important part of the process is obtaining the appropriate authorization from Mexico’s Ministry of Foreign Affairs, commonly known as the SRE.
In our transactions, we will coordinate a visit to the notary’s office so you can sign the necessary documentation and arrange payment for this process.
We typically advise buyers to budget approximately $450 USD per foreign buyer for the permit process and related handling costs, subject to confirmation.Because San Miguel de Allende is located outside Mexico’s restricted coastal and border zones, foreign buyers can generally acquire direct ownership of residential property in their own names without needing a bank trust.
Our closing team will guide you through the requirements and make sure the necessary documentation is prepared before closing.
Step 6: Preparing for Your Final Payment and Closing Costs
As your closing date approaches, we will provide you with a detailed statement showing the remaining funds required to complete your purchase.
This will include:
●The remaining balance of the purchase price.
●Your closing costs.
●Any other agreed expenses or adjustments associated with the transaction.
In San Miguel de Allende, I generally recommend that buyers budget approximately 5.2% of the purchase price for closing costs.
These expenses include the acquisition tax, notary fees, registration charges, and other administrative and legal costs related to transferring ownership.
The exact amount will be confirmed by the notary’s closing statement.
Understanding the Exchange Rate
One important detail is that your closing costs are paid in Mexican pesos, even when the purchase price of the property is expressed in U.S. dollars.
If your funds are being held in dollars, the portion needed for closing costs will be converted into pesos.
Because exchange rates fluctuate, I normally recommend that my buyers send a little extra money to escrow to avoid a shortage caused by currency movements.
This helps prevent unnecessary delays immediately before closing.
Any unused funds remaining in escrow will be returned to the bank account you designate, according to the escrow company’s procedures.
Step 7: Closing Day - Becoming a Homeowner in Mexico!
This is the moment we’ve all been waiting for!On closing day, we will meet at the notary’s office with the sellers and the professionals involved in completing your purchase.
In Mexico, the transfer of real estate ownership is formalized through a Mexican notary public, who is a specially authorized legal professional.
Because the property deed is an official Mexican legal document, the deed will be written entirely in Spanish.
But don’t worry if you don’t speak Spanish.
For our English-speaking buyers, we arrange for a qualified interpreter to translate and explain the deed in English during the closing appointment.
This allows you to understand the document before you sign.
Once the deed has been reviewed, the necessary documents have been signed, and the agreed payment and closing conditions have been satisfied, the seller will hand over the keys to your new home.
Congratulations! You are now the proud owner of a home in San Miguel de Allende!
Step 8: Recieving Your Property Deed
At closing, you will receive a copy of your signed deed or an appropriate certified copy, depending on the notary’s procedures.
The original deed will then go through the necessary post-closing formalities, including the applicable municipal and Public Registry processes.
In our experience, the finalized and registered deed is often ready in approximately two months, although the exact timing can vary.
Our closing team will help coordinate the process and let you know when the finalized documentation is available.
In the meantime, you can begin enjoying your new home!
Final Thoughts: Buying Property in Mexico Can Be Easier Than You Think
I understand that purchasing a home in another country can initially feel overwhelming.
There are unfamiliar documents, different procedures, currency considerations, and questions about how everything works.
But with the right professionals guiding you, the process becomes much easier to understand. From coordinating inspections and negotiating repairs to preparing bilingual agreements, arranging escrow, and accompanying you to the notary on closing day, my goal is to make sure you feel informed, comfortable, and confident throughout your purchase.
And one of my favorite moments in this business is seeing my buyers receive the keys to a home they truly love.
Welcome to San Miguel de Allende. Welcome home.
Romina Garibay
Coldwell Banker SMART | Perfect Home San Miguel
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