Question re: real estate down payment

[DML]

I was wondering...what is the normal amount here in GTO to put into escrow when signing a contract to purchase a home? 10%? 20%? 30%? or more? Thanks in advance for your replies.

[linn]

Escrow?

I hope some of our experts will chime in.

[terriolinda]

Hi. My husband and I have a real estate company across from VIPS restaurant (Guanajuato Bienes Raices). Normally the deposit is around 5%-10%, depending on what you can agree on with the seller. Escrow has been non-existent in the past - normally, in Mexico, the seller keeps the deposit which is always nerve-wracking and risky. We've started the practice of holding the deposit ourselves whenever we can get the seller to agree and, in most cases, they have been understanding and open to it. Closing is normally very quick, so it's not a big problem. It's my understanding that notarios are not legally permitted to hold money. Hope that's helpful. Good luck!

[DML]

thanks for the info....we bought a casita in the Yucatan. common practice there is a small percentage (generally 5%) in escrow that is held by the notaria.

[laconstance]

When I bought my house early in 2007, I was told by my notario that it is illegal for notarios to "keep" the down payment. No such thing as escrow, as Americans know it. So, I had the unnerving experience of carrying around thousands of dollars in U.S. cash ($100 bills) until we could sign the contract to buy and the money could be counted out to the seller over the desk at the notario's office! The notario was in no way involved with the money.

By the way, if you do bring cash for your down payment, be sure that you inspect every bill given to you by your U.S. Bank. Americans are not particularly fussy about money, and accept worn, tattered, and even taped bills. But M?xicans are fussy. Don't bring any bill that is marked, dog-eared, worn, or not otherwise perfect.