Texas is a very friendly place for a foreign national to purchase real estate. This article will explore some
of the finer points and concepts when you as a foreign national are buyer property in Texas. These are
also good topics to discuss while choosing a Realtor or Builder.
The best way to receive ownership in a piece of property is with a General Warranty Deed backed up by
Title Insurance. There are other forms of ownership; however, this is commonly regarded as superior.
The Deed is similar to an Escrituras in Mexico. To complete your ownership, Deed must be recorded
with the County Clerk in the County your property is located. Generally this is accomplished by the title
company responsible for closing your transaction. It is very important to make sure you use a reputable
title company when closing on real estate. Similar to a Notario Publico in Mexico, the title company
researches the records on that property to make sure the seller does own the property and has the legal
right to convey ownership. Also, the title company sees to it all liens, taxes and problems with the title
are identified resolved and/or paid. It is important to insist on using a title company. You may want to
meet with representatives of the title company to make sure all is well with the property you wish to
purchase. At time of closing, the title company acts as an third party escrow agent holding your funds,
interfacing with your lender and holding the deed from seller to make sure everything happens as it
should.
You can see some of the slight differences from Mexico. For example, records are kept at the County
level versus State level. The Notario Publico performs similar duties as the title company. The word
Notary can cause confusion, because in Texas there is a Notary. However, there is a substantial
difference between a Notary in Texas and a Notario Publico in Mexico. A notary in Texas is someone
who verifies that the person Signing a document is that person. They do not necessarily see to it that the
person is the legal owner or title is in good order. A Notario Publico in Mexico researches title history,
prepares Escrituras documents and files with the State Government. Although a notary Signature and
seal is required when recording a deed, the title company will provide that service along with the other
services discussed. Please be aware that you may be driving down the street and see an office that says
Notary. Again, this is not the same as a title company in Texas or a Notario Publico in Mexico. One more
note on title companies, they will back up their work with a title insurance policy. Like other insurance,
this covers you in the event a problem arises with the title. You will want to keep your
recorded Deed and Title Insurance Policy in safe keeping after your transaction is completed.
There are certain customs in Texas you want to be aware of regarding closing costs. It is customary in
Texas for the seller to pay for the title insurance policy, cost of preparing deed, half of the escrow fee
and pro-rated taxes. The buyer normally pays costs incident to obtaining a loan to purchase
property, half the escrow fee, etc. If you do utilize financing, it is important to meet directly with your
lender and obtain a “good faith estimate” to avoid any surprises regarding closing costs. If possible,
obtain other good faith estimates from competing lenders to make sure you are not paying too much.
With the market a little weak right now, sometimes it is possible to ask the seller to pay your closing
costs. Also, when contracting for real estate it is customary to tender earnest money. However, it is not
normal to give large deposits and earnest money should be held by the title company.
When choosing a real estate agent, it is important to ask for a “Buyer’s Agent”. This means that
the agent is representing you and your interest. They will provide advice regarding what to offer
and how to structure a deal most advantageous to you. Your agent should have knowledge of
available financing and advise you regarding closing costs. Now is a terrific time to buy with very
attractive prices and low interest rate. It is possible to make offers and obtain good buys on real estate.
You will want to seek advice from a trusted buyer’s agent and/or use your own good judgment in
crafting a offer that is good for you but does not insult the seller.
Another common practice when purchasing a resale home is to tender a minimum amount
of money, many times $100., as an option fee. Option periods can run from 10 to 30 days on a home
and allows you the opportunity to have the home inspected and/or perform due diligence you may wish
before being completely committed to the transaction. Normally you may back out for whatever reason
within the option period and simply forfeit the option money (i.e. $100.). A good buyer’s agent can walk
you through this procedure. If purchasing a new home, it is customary for the builder to provide a one
year warranty on workmanship. Many times a ten (10) year warranty for structural items is also
provided. Most Builders will walk through the home with you before closing to touch up any final
construction items and close when you are satisfied with the home.
Another difference between the two countries is it advisable to carry more homeowner’s
insurance then one might in Mexico. Differences in construction materials, weather
and liability issues in the USare reasons for additional insurance. You will want to explore options for
comprehensive homeowner’s insurance that covers items such as fire, theft, vandalism, personal
liability, etc. Be sure to shop around and use a reputable company.
Couple of other items regarding your ownership of real estate in Texas. First, generally property taxes
in Texas are higher then in Mexico. Be aware that they are due annually before January 31st of the
proceeding year. Sometimes your Lender will collect them monthly in your payment and see to it they
are paid. However, many foreign national loans do not have that feature. If you pay cash, you will
certainly be responsible for making sure property taxes are paid. Please make sure you know how much
these annual taxes are and be prepared to pay them. Late fees and interest are very high and the
property can be foreclosed for non-payment. Also, be aware of fees assessed by a HOA or Homeowner’s
Association that your property is located. There are many positive aspects of being a member of a HOA;
however, they do have fees you want to be aware. It is advisable to study HOA documents and
understand covenants and restrictions of a prospective HOA.
If you are paying off a loan on the property, it is very important to obtain a release of lien from the
lender. That release must be signed, notarized and recorded in the County property is located. Many
times people will payoff their loan and a release of lien is never obtained or filed. Like the Deed
discussed before, the release of your lien Is not complete until it is properly filed of record.
Wonderful properties are available and the real estate community is anxious to assist you. It is
important to make sure that concepts discussed in the article are embraced by the person you are doing
business.

McAllen Homes for Sale & McAllen Apartments