In a typical transaction, the real estate agent shows the property to the purchaser explains the legal process and land ownership laws to the client. Because the real estate industry has no standards, the agent may, or may not, actually understand the laws and the documents that they provide the purchaser. Should the purchaser decide to buy the land, the agent will provide a "Purchase Offer" or letter agreement which has been pre-written, usually be the real estate agent. The buyer will be expected to make a sizable deposit at the time they sign this letter. There are no standardized real estate forms in Mexico and from experience, far more of these contracts are unenforceable than are enforceable.
We, at Folsom, have seen many, many of these contracts that are written in a fashion that could never be enforced in a court of law, that do not adequately address the return of the purchaser's fund, or that contain clauses that with enormous consequences for the client. For example, in a contract written by a Cancun real estate agent, the agent included a clause that required the purchaser to pay the real estate agent's commission fee of 6% of the total sales price, before the agent even made the offer to purchase! Since the custom is for the seller to pay the agent, it is highly likely that the agent had already increased the price of the property, over what the seller was asking, to include the agent's commission, thus ensuring double payment of the real estate agent.
The real estate agent will also most likely be the person who introduces you to the attorney who will close the transaction. Because the agent, attorney and seller usually work closely together on a daily basis, the foreign purchaser must recognize the reality of their relationship and understand that they are outside the relationship.
Choosing an Agent [Typical Transactions] Choosing a Mexican Attorney Ejido Property