Escrow Process in México: allowed actual land property ownership after 1975
When Americans and Canadians started buying under the new rules that allowed actual ownership after 1975, escrow was – literally – a foreign concept. Mexican law still makes no provision for escrows, in which a neutral party holds funds for the buyer and seller in a transaction. Yet sophisticated buyers and sellers needed the security of escrow for their mutual protection. The title companies operating in our state stepped forward to offer such escrow services, and in almost every case our transactions involve an escrow company (We work with AMX Title based in Texas) acting as the neutral party. All such escrows are “split,” with the funds kept and controlled in a US bank, and the deed and other transaction documents prepared and executed, as required, before a Mexican notary. The common practice is that the parties execute the title transfer documents at the notary’s office, and at the same time sign a disbursal order which is then sent by e-mail to escrow specifying the addressees and amounts for funds transfer.
