Condos For Sale In Puerto Vallarta: Is there a warranty when I am buying Puerto Vallarta real estate?
When you buy a refrigerator, a dishwasher, a car or practically any product, you also get a warranty policy for that product. In these case s, the warranty policy is stated in a piece of paper that comes with the product you are purchasing. When you buy real estate in Mexico, you also get a warranty policy, but unlike if you were buying a TV, these warranty policies do not come in a piece of paper delivered with your purchase.
In the case of real estate purchase in Mexico, the warranty is simply stated in the law and many people don’t know about it. For example, when buying a brand new condo or luxury villa directly from the developer, according to the Mexican Consumer Protection Law, the guaranties are:
Five years for structural damages.
Three years for waterproofing.
One year for any other defects.
The developer is obliged to correct any defects that may arise within the time periods mentioned above. These periods will start when you tak e possession of your home. If once the developer has corrected the defects, these arise again, then the developer must correct again the defects and compensate you with 5% of the value of the repair in case of minor defects, and 20% of the purchase price of your home in the case of severe defects. If the defects arise for a third time, you are entitled to ask the developer either to replace your home or to cancel the purchase agreement and get all your money back.
So what happens if I didn’t buy a brand new home?
If you are not buying from the developer, you are also entitled by law to a warranty from the seller. This warranty is valid for one year and is applicable to hidden defects that impede you to inhabit your home or that diminish considerably the value of your home. The period of one year starts when you take possession of the property and if these hidden defects arise within that period, you are entitled to get an indemnity from the seller.
Authored by Roberto Ortiz Montellano, Mexican-Licensed Attorney of Real Estate and Business Law.
