Escrow Services in Mexico: Is Your Financial Transaction Secure?
Congratulations! You’ve decided to make an investment in Mexico and you’re being asked to transfer money into the personal bank account of your realtor, lawyer, or developer. While this is a common occurrence during large financial transactions in Mexico, it is definitely not the secure way. We strongly suggest you consider an escrow account where you can hold funds while the terms of the contract are being met.
What is an Escrow Account?
Escrow accounts are neutral-third party which holds the funds in a secure account based on the instructions agreed upon by all parties involved in the contract. With detailed instructions of how the funds will be distributed and when, neither of the parties involved may access the funds until the terms of the instructions are met. In Mexico, it is not legal for a lawyer, notary, or real estate agent to hold fund “in trust”, regardless of what you may have been told. Transferring money into an account in Mexico, such as an agent’s personal account, to be held “in trust” is incredibly risky. Their account is subject to liens or seizure from SAT, Mexico’s tax authority. Even if it is with the best intentions on the part of your agent, developer, or lawyer in Mexico, it’s putting your investment at serious risk.
Do Escrow Accounts Exist in Mexico?
No. However, reputable services are available for transactions in Mexico with firms such as Mexlaw, which have escrow account services available in Canadian and/or U.S. banks.
Why Should You Consider Mexlaw Escrow Services?
We have designed our escrow services to ensure your peace of mind. Our team of experienced lawyers have created thousands of escrow accounts, allowing clients to feel confident their financial investment is protected while contractural obligations are met.
- Separately administered Escrow Accounts
- The funds are held in a Canadian Chartered Bank account
- The Escrow Account is protected by professional liability insurance for $1,000,000 per account
- The Escrow Service includes an arbitration process to resolve any disagreements with the transaction
- Protection against fraud
Mexlaw Escrow Services Now Available in Los Cabos