A reservation agreement is often the first document a buyer signs in a Baja California property transaction. It may be only a few pages long, but it can commit a deposit, set deadlines and shape the rest of the deal. Before you sign or send money, review these five points.
1. Who Is Actually Selling the Property?
The person marketing the property is not always the person authorized to sell it. Ask for the escritura, the fideicomiso or other ownership documents, and confirm that the seller named in the agreement matches those records.
2. What Happens to Your Deposit?
The agreement should state who will hold the deposit, when it may be released and under which conditions it will be returned. Be cautious if the deposit becomes nonrefundable before you receive the essential documents.
- Who holds the funds and in which account
- The written conditions for release
- Whether the deposit is refundable during due diligence
- What happens if the seller cannot deliver documents
3. Which Deadlines Are You Agreeing To?
Reservation agreements often set dates for due diligence, signing the purchase agreement and closing. Make sure those dates leave enough time for bank, notary and permit requirements.
4. How Will Ownership Be Transferred?
If the property is within Mexico’s restricted zone, a foreign buyer commonly acquires rights through a fideicomiso. The agreement should identify whether a new trust or an assignment of an existing trust will be used, and who pays the related costs.
5. Are Verbal Promises in Writing?
Parking spaces, storage, furniture, repairs or delivery dates mentioned in conversation should appear in the written agreement. Marketing materials and verbal statements may not offer the same protection.
A short reservation agreement can contain binding payment, refund and deadline provisions. Review it before you sign.
Get a Review Before You Commit
Baja Legal Solutions reviews reservation and purchase agreements for buyers in Tijuana, Rosarito and Ensenada. Request a consultation and include the agreement, the property location and your next deadline.
