Picture this: you’ve found it, the deal of your dreams, a promising, if not downright fantastic, property in Mexico, awe-inspiring sights, price, you name it. You go ahead and start the process: you find your people, you make transactions, you sign the paperwork, it’s all fine and dandy! Until you realize that, perhaps, you ignored some of the fine prints. Maybe you didn’t bother to check what kind of contract you were signing, or worse, it was in Spanish and the agent didn’t bother to give you a translation.
I haven’t even gotten to the consequences bit, and it already sounds like something straight out of a horror movie, doesn’t it? Well it’s real alright, and it’s happened to a lot of people. So what to do? How do you not become yourself material for a shady real estate contract campfire story?
Keep on reading, because I’m about to tell you the five necessary parts you need to check off any legal real estate contract:
A Real Estate Contract requires Competent Parties Always
This boils down to both the buyers and the sellers being mentally able (sane), and free of any mind-altering vices (alcohol, drugs). This also includes people that don’t know Spanish, so if you don’t know Spanish it’s best to get yourself a translator for these kinds of deals. You might be able to arm-twist your way into an English variant of the contract, but the nation’s language will take precedence over it should any legal issues arise, so take that into consideration.
A Real Estate Contract requires a Lawful Objective
Straightforward and self-explanatory. If the intent is to set up any form of illegal business, the contract can and will be voided. Also as a little tip from me to you, if the person trying to sell you the property doesn’t have anything to prove the ownership of said property, then you should steer clear from what is most likely a swindle.
A Real Estate Contract requires Offer and Acceptance
The contract must be agreed upon by both parties. This means that both must sign the contract, and specify the date and place where it was signed. If either party doesn’t, but one does, it can be taken as if the party who did was trying to perform transactions without consent, which can lead to legal problems or having the contract null and void.
A Real Estate Contract requires a Legal Description
This refers to making the property identifiable, from it’s street address, lot, block, to anything else the contract may require. If a contract doesn’t specify these bits, well, that’s as red a flag can get.
A Real Estate Contract requires Consideration
Consideration translates to an “extra” added onto the contract, as evidence of good faith. This can range anywhere from something of worth, “hugs and kisses” and, in most cases, money. Think of it as an assurance, if you will.
That’s about it. Should any of these be missing from your checklist, then you’re probably better off looking for another deal. Alternatively, however, you can enforce your need of a proper contract.
Sure, some people might take offense to this, but remember, you are in your complete right (and obligation) to see these requirements fulfilled, since it’s necessary for the deal to go off without a hitch, and to prevent any form of legal repercussions down the line. Best-case scenario, the seller realizes this and goes on with the deal, following the rules. Worst-case scenario, you’ve avoided a risky proposition, and you’ll be well on your way to invest your money somewhere else, somewhere safer.
Remember, keep calm and keep sharp!