Department of Consumer & Regulatory Affairs: Glosario del terminos

ACQUISITION – ADQUISICION: The process of taking title to or ownership of something.

AGREEMENT – CONVENIO: A manifestation of mutual assent on the part of two or more persons as to the substance of a contract.

APPRAISSAL - VALORACION: An evaluation to determine what a piece of property would sell for in the current marketplace.

APPRAISER – PERITO VALUADOR: A person selected or appointed by competent authority or interested party to make an appraisement

ATTORNEY AT LAW - ABOGADO O LICENCIADO EN DERECHO: Person admitted to practice law in his respective state and authorized to perform both civil and criminal legal functions for clients, including drafting of legal documents, giving of legal advice, and representing such before courts, administrative agencies, boards, etc.

BENEFICIARY - BENEFICIARIO: The recipient of trust income, benefit plan, or gifts in a will.

BROKER – CORREDOR: An intermediary who brings parties together for specific purposes. A mortgage broker brings borrowers together with lenders; a real estate broker brings purchasers together with vendors. Often charges a percentage of the contract price as a fee. Specific training required to become a Real Estate Broker, a professional designation.

BUDGET – PRESUPUESTO: The amount of money that is available for, required for, or assigned to a particular purpose

BUYER - COMPRADOR: A person that acquires possession, ownership, or rights to the use or services of by payment especially of money.

CERTIFICATION – CERTIFICACION: The formal assertion in writing of some fact.

CLOSING COSTS - COSTOS DEL CIERRE DE LA OPERACION: Monies expended by a party in completing a transaction, over and above the purchase price, including: legal fees, taxes, mortgage application charges, interest adjustments, registration fees, appraisal fees, etc.

COMPENSATION – COMPENSACION: To offset an error, defect, or undesired effect.

CONDITION – CONDICION: Clauses in the agreement that must be fulfilled before the Agreement becomes firm and binding. If the condition is not fulfilled, the Agreement will usually become null and void and any deposit paid returned to the Purchaser.

CONDOMINIUM – CONDOMINIO: A Ccondominium regime s are is a Mexican legal notary public document that are is not legally obtainable until construction is complete.

CONSUMER – CONSUMIDOR: an individual or corporation that acquires or enjoys property, products or services as the end-user.

CONSUMER PROTECTION AGENCY, PROCURADURIA FEDERAL DEL CONSUMIDOR (PROFECO: An Agency which functions are to promote and protect consumer rights and to procure equity and legal certainty between consumers and commercial suppliers

CONTRACT – CONTRATO: A legally enforceable promise or set of promises that must be performed and for which, if a breach of the promise occurs, the law provides a remedy. A contract may be either unilateral, by which only one party is bound to act, or bilateral, by which all parties to the instrument are legally bound to act as prescribed.

CORPORATION - SOCIEDAD ANONIMA: An entity or organization, created by operation of law, whose rights of doing business are essentially the same as those of an individual. The entity has continuous existence until it is dissolved according to legal procedures.

COVENANT – ESTIPULACION: A legal assurance or promise in a deed or other document, or implied by law.

DEED - ESCRITURA PUBLICA: The legal document that transfers ownership of a piece of property.

DEPOSIT - DEPOSITO: The money paid up-front by a purchaser as security for her completing the transaction. Also known as "good faith money" or "earnest money". An instrument which is not registered on title but placed in the records for a given piece of land for information purposes.

DEVELOPER – DESARROLLADOR: One who attempts to put land to its most profitable use through the construction of improvements.

DISCLOSURE - DECLARACION: A statement to a potential buyer listing information relevant to a piece of property, such as the presence of radon or lead paint.

DISCLOSURE STATEMENT – DOCUMENTO DE DECLARACION: This document provides information concerning the current physical, legal and economic condition of the property

DUE DILIGENCE - DILIGENCIA DEBIDA: Such a measure of prudence, activity, or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable and prudent man under the particular circumstances; not measured by any absolute standard, but depending on the relative facts of the special case.

DUTY – OBLIGACION: Obligatory tasks, conduct, service, or functions that arise from one's position (as in life or in a group)

ESCROW - CUENTA EN PLICA: Escrow is the means by which the buyer deposits his earnest money with an escrow agent and is delivered for later delivery to the seller once the title transfer process is complete. Although growing in importance, escrow is not commonly used in Mexico at this time.

FINANCIAL STATEMENT - ESTADO FINANCIERO: A document which sets out the assets, income, expenses and debts of a person or company to allow a third person to assess that person or corporation's financial health (i.e. when considering lending money to that person or corporation).

HOMEOWNER ASSOCIATION (HOA) - ASOCIACION DE CONDUEÑOS: A group that governs a subdivision, condominium, or planned community. The association collects monthly fees from all owners to pay for common area maintenance, handle legal and safety issues, and enforce the covenants, conditions, and restrictions set by the developer.

INSURANCE – SEGURO: Owners and buyers can purchase various types of insurance including hazard, private mortgage, and earthquake. The policies guarantee compensation for specific losses.

LIEN – GRAVAMEN: A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale.

MARKET VALUE – VALOR DE MERCADO: The most probable price property would bring in an arm's-length transaction under normal conditions on the open market.

MULTIPLE LISTING SERVICE (MLS) - LISTA DE SERVICIOS MULTIPLES: A marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready, willing and able buyers for their properties more quickly than they could on their own. Most multiple-listing services accept exclusive-right-to-sell or exclusive agency listings from their member brokers. MLS in Mexico does not operate in exactly the same fashion as in the U.S., but it promotes ethical and fair dealing and encourages cooperation among real estate professionals.

OWNER – DUEÑO: The person in whom is vested the ownership, dominium, or title of property; proprietor.

PROMISSORY NOTE – PAGARE: A financing instrument that states the terms of the underlying obligation, is signed by its maker and is negotiable (transferable to a third party).

PROPERTY – PROPIEDAD: The rights of ownership in lands or goods.

PUBLIC NOTARY - NOTARIO PUBLICO: Notaries are authorized to prepare and record a property deed. Notaries are attorneys appointed by the state government to specialize in various matters (including real estate transactions). Notaries who are also responsible for collecting ion of taxes at closing.

PURCHASE – COMPRA: To acquire (real estate) by means other than descent or inheritance, to obtain by paying money or its equivalent.

REAL ESTATE – BIENES RAICES O BIENEN INMUEBLES: Land and anything permanently affixed to it, including buildings.

REAL ESTATE AGENT - AGENTE DE BIENES RAICES O AGENTE INMOBILIARIO: A person certified by a state to represent a buyer or a seller in a real estate transaction in exchange for a commission.

RECEIPT – RECIBO: Written acknowledgment of the receipt of money, or delivery of a thing of value, without containing any affirmative obligation upon either party to it; a mere admission of a fact, in writing.

RECORDING – REGISTRAR: The act of entering or recording documents affecting or conveying interests in real estate in the recorder's office established in each county. Until it is recorded, a deed or mortgage ordinarily is not effective against subsequent purchasers or mortgagees.

REGISTRY – REGISTRO: A register, or book authorized or recognized by law, kept for the recording or registration of facts or documents.

RESALE - REVENTA: Exists where a person who has sold goods or other property to a purchaser sells them again to someone else.

RESTRICTION – RESTRICCION: Any limitation on the use of property.

RIGHT – DERECHO: In a narrower signification, an interest or title in an object of property; a just and legal claim to hold, use, or enjoy it, or to convey or donate it, as he may please.

SALE AGREEMENT – COMPRAVENTA: Also known as "Agreement of Purchase and Sale" or "Purchase Agreement. The contract that sets out the terms and conditions agreed to by the purchaser and the vendor in the sale of land.

SELLER - VENDEDOR: One who has contracted to sell property.

SELLER FINANCING - VENTA FINANCIADA: When the seller of a property agrees to payment of part of the purchase price over time with the debt to the seller registered on title as a mortgage.

SUBDIVISION – SUBDIVISION: A tract of land divided by the owner, known as the sub-divider, into blocks, building lots and streets according to a recorded subdivision plat, which must comply with local ordinances and regulations.

SUPPLIER – PROVEEDOR: An individual or corporation that customary or periodically offers, distributes, sells, rents or concedes the use or enjoyment of property, products or services.

TAX – IMPUESTO: To levy an assessment against, usually by government powers. Unpaid taxes usually form a special lien on property owned by the taxpayer, ahead of registered mortgages. The money charged as an assessment

THIRD PARTY – TERCERO: One not a party to an agreement, a transaction, or an action but who may have rights therein.

TITLE - TITULO: The legal document conferring ownership of a piece of real estate.

TITLE INSURANCE - SEGURO DE TITULO: A policy issued to lenders and buyers to protect against loss due to disputed property ownership.

TRANSFER – TRANSFERENCIA: An act of the parties, or of the law, by which the title to property is conveyed from one person to another.

TRUST - FIDEICOMISO: A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of the state and the valid trust instrument. The trustee holds a fiduciary responsibility to manage the trust's corpus assets and income for the economic benefit of all of the beneficiaries.