When You Buyer or Sell Mexican Real Estate Consider Adding an Arbitration Clause to Your Contract

Linda Neil, a Mexican real estate expert, recently pointed out in her article in the Gringo Gazette that Mexico has changed it laws to allow for arbitration and mediation of disputes between parties to a contract for the purchase of real estate in Mexico.  Articles 1415 to 1463 of the Mexican Commercial Code provides guidelines. It is now possible to avoid the uncertainties of the Mexican Courts.  This will allow parties to a contract to resolve their disputes with much greater speed than ever possible in the Mexican Courts and perhaps with more certainty in the final decision, not to mentioned significantly lower costs in legal fees, etc.  If both  the Buyer and Seller are US residents, it may be possible to agree that the mediation or arbitration will be held in the United States using the American Arbitration Association or another recognized arbitration organization.

Next time you buy or sell, tell your agent you need an arbitration and mediation provision put in the contract.  Since so many real estate transactions in Mexico often  result in problems, it is a good decision. Agents who tell you that you must follow their standard contract are not correct. You can always make changes or add additional provisions.