The Public Registry of Property and its effects

The Public Registry of Property and its effects     In some states of Mexico, the Public Registry of Property (“PRP”) has declarative effects. In other words, effects are only to let third parties know the true history of a property, meaning its chain of title regarding transfers or modifications. However, in the State of Quintana Roo things are different, the “PRP” has constitutive legal effects regarding agreements and contracts by which the domain of real estate or a mortgage is acquired, transmitted, modified or extinguished. Such agreements will only be perfected and remain in full force and effect until they are recorded with the “PRP”.     The above is very important, since coordination between the parties and especially the role of the notary public in the real estate transaction, are critical to avoid possible fraud.     The notary public has the obligation to present to the “PRP” certain notices; a First Preventive Notice through which he will let the latter know that a real estate transaction between the parties is being formalized. Later, the “PRP” will take notice of the transaction, notice that will be valid for 30 natural days from the date it was presented.   The effects of the First Preventive Notice are that, from a registry perspective, nothing can be registered other than the real estate transaction of which the notary gave said notice.   After formalizing the real estate transaction, the notary has 48 hours to give a Second Preventive Notice, which confirms to the “PRP” that said transaction has been indeed formalized. The Second Preventive Notice will have a 90 natural day expiry date from the day it is presented. Therefore, the notary public will have that period to deliver to the “PRP” the corresponding deed for its proper registration.   Again, the effects of the Second Preventive Noticeare, from a registry perspective, that nothing can be recorded (within the terms mentioned) except the transaction formalized before the notary who gave said notice.   Now, if the notary public does not give the corresponding notices and does not send the deeds to the “PRP” as soon as possible for its recording, there is a risk that a fraud might occur or be facilitated. This, since the property in reference could be sold again through a different notary, or seized and adjudicated by a false lender, which would tremendously affect a good-faith purchaser’s equity.   In conclusion, it is highly recommended to request and supervise that the notary public complies with the timeframes and legal requirements necessary to safeguard the financial interests of buyers and sellers.              

Add a Comment

Your email address will not be published. Required fields are marked*