When it comes to buying real estate, you can either purchase something that already exists, a re-sale or "pre-existing" property, or you can purchase a "pre-sale" property, something that does not yet exist, that is or will be in the construction phase and at closing is not yet completely finished. The differences are important when it comes to buying real estate. With a re-sale at closing you will be obtaining the title (either in your name or to be held in a trust "fideicomiso"), while with a pre-sale you are often closing before title is available, and that has some inherent risks which every buyer should be fully aware of. Local real estate lawyer David Connell has an article on this site that discusses the general types of "pre-sale" projects that exist, what you should negotiate for if you are making an offer on a pre-sale property, what happens if the developer disappears and no one is on the project to complete the project, and most importantly, what are the chances of that happening and how you can reduce that risk and protect yourself. The article is worth reviewing if you are considering purchasing a pre-sale property.
