Jornada notarial 2015 en la Ciudad de México

11 de Febrero del 2015 | Editorial Metroscubicos


Si eres capitalino, a partir del 16 de febrero tendrás la oportunidad de escriturar tu propiedad y realizar trámites de testamento para evitar problemas a tus herederos, a través de la Jornada Notarial 2015.

El Jefe de Gobierno, Miguel Ángel Mancera, anunció el lanzamiento de este programa que concluirá el próximo 22 de abril, cuyo objetivo  es otorgar descuentos de entre el 10 y el 80% en la expedición de 122 mil escrituras y testamentos.

Los descuentos en impuestos y derechos irán del 10 hasta el 60% en escrituras, de acuerdo al valor del inmueble, mientras que en testamentos será hasta del 80% según el monto de la herencia.

Otro de los beneficios será también la reducción del pago de los honorarios de los notarios en esos rubros y en los testamentos, además de recibir asesoría jurídica gratuita y ampliación de horarios de atención en las notarías, aseguró el Presidente del Colegio de Notarios, Heriberto Castillo Villanueva.
Podrás acudir a cualquier delegación del DF del 16 de febrero al 19 de marzo y a la Asamblea Legislativa del Distrito Federal (ALDF) o al Colegio de Notarios del DF del 17 al 26 de marzo y del 13 al 22 de abril, respectivamente, para recibir asesoría. En eso sitios obtendrás la constancia de participación en la Jornada Notarial 2015 con la cual podrás hacer efectivos los descuentos.
1a. ETAPA - Del 16 al 25 de Febrero


Del 23 de Febrero al 4 de Marzo


Del 2 al 11 de Marzo


Del 9 al 19 de Marzo


2a. ETAPA - Del 17 al 26 de Marzo


Del 13 al 22 de Abril


Condonaciones


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The Process of Purchasing Property in Mexico

theyucatantimes.com

The process of purchasing property in Mexico for a non-Mexican is similar to the process in the United States or Canada, except that it requires a few extra steps. These include the requirement of registering and obtaining permission from Mexico’s Secretary of Foreign Relations, and having to establish a Fideicomiso, or bank trust, when buying property in the restricted zone.

Real estate transactions and property rights are outlined through local, state, and federal laws in Mexico; however, the protection for the parties involved are not as detailed or regulated as the property acquisition process established in the US and Canada. While many people may see this as a deterrent, this allows for opportunities as long as you have a good and experienced real estate team representing and protecting your interests.

The most important steps when purchasing a property in Mexico are:

1. Selecting an experienced, certified and licensed real estate agent.
2. Identifying the area you are interested in purchasing real estate in.
3. Researching and studying the Mexican real estate laws and procedures – this is where having a knowledgeable real estate agent helps.
4. Researching properties and having your real estate agent compile a list of properties that meet your criteria.
5. Physically visiting and touring the area and properties with your real estate agent so you can evaluate the pros and cons of each property.
6. Choosing your new Mexican dream home and making an offer.
7. Preparing the promissory contract.
8. Deciding which entity will hold the bank trust and property on your behalf (if you are purchasing in the restricted zone).
9. Preparing the purchase sales contract and having it formalized with the notary public.
10. Inspecting the legal documents and obtaining permits.
11. Formalizing the conveyance and filing with the public registry.

Those are the main steps to purchasing a property in Mexico. Once you have found the perfect property, what do you do? The first thing is to place an offer to purchase.

Offer to Purchases:

The offer to purchase is the first document you need to begin the process of transferring a property from the seller to the buyer. It can also be prepared as a reservation agreement or an earnest money deposit, listing the main points of the future transaction.

The offer to purchase can be as complex or as simple as the buyer deems necessary. This is the preliminary agreement containing the basic information to execute the transaction such as names and personal information for both parties, the description and address of the property, the price and payment terms, the terms and conditions of the offer, and the closing date. Any money released, such as earnest money, should be refundable during this phase.

The offer to purchase is a legal document. Once it has been signed and accepted by both the buyer and the seller, it creates a binding commitment for the buyer to purchase, and the seller to sell. It can be signed before a notary or before two witnesses. Even though it does not need to be notarized, it does have a legal binding effect.

Restricted Zone:

Based on Article 27 of the Mexican Constitution, a non-Mexican citizen cannot hold a real estate title within the restricted zone. This zone is 50 kilometers from the coast and 100 from the United States or Central American boarders. Because the Mexican Constitution forbids non-Mexicans from purchasing within this restricted zone, an innovative and secure method of holding the title was created; this allows foreign ownership through a property trust called a Fideicomiso (or bank trust).

Buying With Confidence- How To Prepare For Your Purchase

advice.realestateview.com.au

Preparation for buying a property

Buying your first home is likely to be the biggest investment you will ever make.  The process can be daunting, particularly for first time buyers, but with the right preparation – buying property can be just that little bit easier. Here are our tips on how to be well prepared when buying a property.

Understand what you can and cannot afford

Before you begin your property search it’s important to work out exactly how much you can afford to spend on your new home.   Many home buyers do this by calculating if they can afford to pay the monthly mortgage repayments.  However with home ownership you also need to factor in the costs that you will incur during the purchase process ie legal fees, stamp duty as well as costs incurred ongoing as a property owner ie repairs, rates, insurance, body corporate etc.  Thus before you step out to view properties – establish how much you can truly afford.

There is also no point getting excited over a townhouse when your budget only allows for a one bedroom apartment.  Thus, establishing how much a financial institution will lend you is also as equally as important as is determining which loan is likely to suits your needs and lifestyle before you hit the market.

Do your research and understand the market

Having a sound understanding of the market as a whole, as well as your local area, can help you to make a more informed purchase decision and potentially eliminate buyer’s remorse down the track.  These days there is a plethora of information available on the web to enable you to be more informed about current market conditions, suburb trends and the value of property in your local area all of which may impact your decision of where to buy and at what price. Here are a few resources we recommend;

Property Portals: Property portals like realestateVIEW.com.au are a valuable source of information. All of the leading Australian property portals not only provide current listings but also offer blogs / articles so you can learn more about current market trends. Portals also provide sold directories so you can view the latest sales results in your local area.

Data Sites: If you want to immerse yourself in the data; both recent sales and historical trends, then property data sites will be an invaluable resource.  Sites like propertyDATA.com.au, Residex and others provide access to market trends, as well as historical sales results, median prices and a plethora of other information (some of which is free and other resources which incur small fees).

Agent websites: Agent websites can also be a great source of information, with many agents blogging about recent local market activity.

Understand the in’s and out’s of buying

You’re almost there. Once you’ve found “The One” you then need to go through the process of buying the property – which will differ depending on the method of sale.  It is important to familiarise yourself with the various buying methods to understand your rights / obligations when purchasing via this method.  Understanding this upfront may help you to avoid making a costly mistake down the track.

Qué revisar en un contrato de apertura de crédito

04 de Marzo del 2014 | Editorial Metroscubicos

El crédito hipotecario es el mecanismo más usado para adquirir vivienda. Sin embargo, pese al dinamismo de la actividad, el proceso para tramitar una hipoteca es complejo y los riesgos pueden elevarse si no se definen las condiciones claramente desde el principio. Estas se establecen en el contrato de apertura de crédito, un documento de crucial importancia porque contiene las claúsulas financieras del crédito, los derechos y las obligaciones que tendrán vigencia mientras exista la deuda.

¿Qué contiene?

De acuerdo con los expertos del simulador y comparador de hipotecas Hipos.com, entre las obligaciones establecidas en el contrato de apertura para el acreedor están: pagar puntualmente el importe de la mensualidad completa, informar al banco si vas a realizar alguna modificación al inmueble (porque concierne al seguro de daños) y garantizar que el inmueble no se rentará durante la vigencia de la hipoteca.

El contrato también especifica derechos para el deudor como: la posibilidad de hacer pagos sin penalización y traspasar la deuda a otra persona por medio de la figura de sustitución de deudor.

El contrato de apertura de crédito —del cual debes tener una copia— es una garantía y no representa riesgo alguno para ti porque se suscribe ante notario público y ambas partes lo firman de común acuerdo. Lo único que debes hacer es leer bien las cláusulas, resolver dudas y saber a qué te estás comprometiendo para evitar sorpresas. "Hay que considerar que el contrato no es susceptible de cambios posteriores a la firma de las partes", dice Ramón Estrada, fundador y director general de Hipos.com.

Los más importante en tu contrato

1. 1.    Datos generales. Nombre y datos completos del acreditado y, en su caso, del coacreditado. También hay que incluir y cotejar la ubicación del inmueble.
2. Importe. Es el monto que te presta la institución. Debe especificar la moneda y su equivalencia en pesos en caso de ser un crédito en dólares u otra unidad. Estrada recomienda identificar el monto del crédito neto, ya que previamente se deben descontar las comisiones que genera el crédito.
3. Intereses. Indica el tipo de interés que se aplicará al crédito. Puede ser tasa fija, variable o con tope. Es importante saber si habrá cambios predeterminados en las tasas a lo largo del plazo. Además, debes estar consciente de que normalmente en un inicio los intereses representan la mayor parte de la mensualidad,  contrario a lo que se abona a capital.
4. Plazo. Es el número de meses en los que deberá pagarse el crédito. Elige el que se acople a tus necesidades.
5. Mensualidad. Es el monto del pago que deberá cubrirse cada mes. El número de mensualidades debe coincidir con el punto anterior. La institución debe proporcionarte una tabla de amortización que refleje los pagos y su desglose.
6. Forma de pago. En este apartado se establecen las alternativas (efectivo, cheque, transferencia electrónica o domiciliación) y los lugares para efectuar los pagos.
7. Penalizaciones. Estipula las sanciones a las que te harías acreedor en caso de incumplimiento. Es importante leer cuidadosamente este punto para estar conscientes de las consecuencias que implicaría alguna omisión o falta en el contrato.

Los expertos recomiendan verificar el interés que genera el pago moratorio, el incremento en la tasa de interés considerado en caso de atraso en el pago de la mensualidad y si se están considerando cargos por pago anticipado.

1. Pagos anticipados. Se refiere a la posibilidad de efectuar aportaciones al capital para reducir el monto de la mensualidad o el plazo del crédito. Para aplicar esta opción, la mayoría de las instituciones solicitan que el deudor esté al corriente en sus pagos, de lo contrario, primero tendrá que cubrir el monto pendiente.
2. Seguros. En los contratos se establece el acuerdo para contratar seguros que puden ser para proteger la vivienda, la vida del deudor, la cobertura de daños o un eventual desempleo. Su costo ya está considerado en la mensualidad. De cualquier manera, es importante saber que el seguro de la vivienda sólo considera la parte equivalente a la deuda contraída, por lo que si estás interesado en una protección completa, tendrás que adquirir un seguro complementario.  
3. Vencimiento anticipado. Indica las causas por las que el contrato puede terminar antes del plazo establecido.
4. Estado de cuenta. Asegúrate de que en el contrato queden estipuladas la vía y la frecuencia con la que recibirás tus estados de cuenta. Este documento es importante porque ahí estarán reflejados tus pagos.

Los errores más comunes

Ramón Estrada de Hipos.com asegura que uno de los errores más comunes en los contratos de apertura es que el cliente no verifica desde un inicio si la tasa de interés tendrá incrementos durante el plazo y si la mensualidad va a ser fija o variable durante la vida del crédito. También es común no confirmar que los datos del cliente o de la garantía, en su caso, sean correctos.

Las consecuencias de no hacerlo pueden convertirse en un dolor de cabeza para el acreedor e impedirte cumplir pagos futuros por los incrementos en la mensualidad que no fueron contemplados al principio, lo que implica el riesgo de afectar tu historial crediticio, así que toma en cuenta esta infomación para firmar con toda seguridad tu contrato de apertura de crédito hipotecario.

Investing on a Second Home or Vacation Rental Property

ventanamagazine.com
Author: Roger Vales & Diego Garcia

 One of the key decision-making factors when considering and investment in a foreign country is to have someone you can rely on to solve all of the different aspects of owning a property while you are hundreds or thousands of miles away. This is when Property Managers come into the picture.

Property management is the operation of real estate, the range of functions that a manager does, include but are not limited to: maintenance, provision of services, supervision of staff employed for services, payment of outgoings, payment of property taxes , together with negotiations with tenants and prospective tenants and the collection of rents.

Finding a good property manager could be the difference of you truly enjoying your second home or vacation rental property or having a very disappointing experience. Imagine coming to your beautiful new condo on the beach in Mexico and dealing with receiving furniture, installing satellite tv or cable, internet and not being able to communicate with providers because you do not speak Spanish or having to wait for hours when you could be at the beach relaxing.

If you do not have someone taking care of your property, on your second visit to your condo to hopefully relax because your first trip you worked more than you would have wanted to, you find that there is mold everywhere, your plants are dead, and you have no hot water, so you spend your “vacation” working and fixing problems so maybe, just maybe on your next trip you will be able to relax and enjoy.

Once you have a property manager with the local knowledge you will not only feel more comfortable with going forward with your investment, but will also have the peace of mind that you will not need to deal with any of the problems yourself, and when you arrive to your house you will find it in pristine condition. Additional benefits of having a property manager could be having a housekeeping service during your stay, concierge services, airport pick up, etc.

If you are using your property for vacation rentals most property management companies provide the service of offering your property in the vacation rental market, but not all of them have the infrastructure to aggressively market your property and provide hotel like services to the vacation rental guests. Although renting your property could be just to have some money in return to pay the expenses, paying the mortgage or making a business out of it, it is important to consider the infrastructure behind the property management company to truly understand their capabilities and therefore make a wise decision.

Having a property manager will also help to increase the value of your Real Estate, because a well maintained property with an attractive vacation rental record will make it a strong candidate for an easy sale.

9 reglas legales para comprar tu casa

11 de Marzo del 2014 | Editorial Metroscubicos

Cuando encuentras la casa que quieres comprar e inicias las negociaciones, es momento de corroborar que la propiedad cuenta con todos los documentos necesarios para llevar a cabo la compra-venta. La idea es garantizar que estás frente a un bien raíz legal y que tu inversión no corre riesgo alguno.

Aunque lo más recomendable es contar con la asesoría de un abogado experto en bienes raíces, puedes avanzar en la revisión de los documentos y detectar cualquier anomalía oportunamente.

El primer paso

Solicita al vendedor copias de las escrituras, de su identificación oficial y acta de matrimonio, así como de los últimos pagos de predial y servicios. Estos documentos son los pilares para saber que la casa que vas a comprar está en regla.

Con la escritura en la mano, debes revisar:

1.La ubicación.

Corrobora que la propiedad se encuentra ubicada donde la escritura lo menciona.

Es posible que el nombre de las calles haya cambiado, si es el caso, acude a la delegación correspondiente o al palacio municipal de tu localidad, y verifica que el nombre anterior de la calle coincide con las escrituras.

Esto debes informarlo al notario público cuando se realice la firma de las nuevas escrituras, para que se haga una anotación como la siguiente: "La calle Fulana, antes, hoy Av. Mengana…".

1. 2.   Nombre del propietario.

La única persona autorizada para vender la propiedad es el mismo que aparece como dueño en las escrituras, por esto es importante corroborar sus datos con la identificación oficial.

En ocasiones ocurre que el propietario tiene dos nombres y en la escritura sólo se lee uno. En este caso, también se debe hacer saber al notario esta aclaración.

1. 3.   Régimen de la propiedad.

Este punto es de vital importancia para la compra de una casa, pues el estado civil del propietario tiene relevancia.

Si el dueño está o estuvo casado bajo el régimen de sociedad conyugal, es fundamental contar con el consentimiento del cónyuge para la venta. De lo contrario la transacción no podrá realizarse.

Otros aspectos a revisar, que no están registrados en las escrituras son:

4. Permisos y planos

Las construcciones nuevas tienen planos arquitectónicos y de instalaciones, así como licencia de construcción y un aviso de terminación de obra. Las especificaciones de estos documentos deben corresponder a la realidad: si el papel dice "edificio de cinco pisos", no debe tener seis, pues en caso de incurrir en estas anomalías la obra puede clausurarse.

5. Constitución de Régimen en Condominio

Si es un edificio de departamentos, también solicita este documento en el cual se especifica que cada comprador es dueño exclusivo, y únicamente del departamento que compró.

6. Adeudos y gravamen

Estos pueden ser:

• Gravamen: Se refiere a aquellos adeudos por créditos hipotecarios o problemas de embargos a la propiedad. Un gravamen aplica a vivienda nueva y usada.
• Predial y servicios: Ya sea una vivienda nueva o usada, es importante verificar que los pagos por estos conceptos estén al corriente.

Cuando compras una vivienda nueva, es importante que la desarrolladora garantice por escrito que no quedará ninguna deuda a la hora de la firma de la escritura por servicios de luz o agua, pues si se quedara algún adeudo lo deberán pagar entre todos los residentes.

Aunque el notario público en su momento verificará posibles gravámenes, o problemas de litigios, es recomendable detectar posibles contratiempos antes de que el proceso esté más avanzado.

7. El contrato de compra-venta

Cuando tienes la certeza que todo está en regla con la casa o departamento, estás listo para firmar el contrato de compra-venta, documento en el cual se expresa tu consentimiento y el de el vendedor por realizar la transacción.

El contrato debe incluir la identificación e individualización del inmueble por adquirir: calle, número, colonia, superficie de terreno y construcción, cajón de estacionamiento. Además de las características técnicas, especificaciones de construcción, acabados y otras características adicionales a detalle.

Asimismo, se incluye el precio total del inmueble y la forma en que se pagará; los precios adicionales y los montos de penalización en caso de incumplimiento por cualquiera de las partes. La fecha de entrega y si la vivienda cuenta con seguro de calidad, o el plazo y términos de la garantía en caso de surgir vicios ocultos.

En el caso de viviendas nuevas, ya sea en el cuerpo del contrato o en anexos también se deben estipular las amenidades y servicios del complejo habitacional.

8. La escrituración

Llegó el momento de acudir a una oficina notarial para escriturar la propiedad a tu nombre. Los documentos se presentan en original y son: la escritura previa inscrita en el Registro Público de la Propiedad (RPP); las boletas pagadas de predial y agua de los últimos cinco años. Si el vendedor es casado, su acta de matrimonio.

Junto con tus documentos, deberás entregar un anticipo para pagar algunas gestiones y documentos necesarios para el trámite, como constancias, certificados y el avalúo. El resto de los gastos notariales, como honorarios e impuestos se pagan al momento firmar la nueva escritura.

El trámite entero se lleva entre 25 y 30 días naturales.

9. Firma de la escritura

El proceso concluye cuando tú y el comprador se presentan a las oficinas notariales a la firma de las escrituras.

Es aquí cuando deberás liquidar la propiedad, ya sea con un cheque certificado o una transferencia bancaria.

Una vez que las partes hayan firmado, el notario presenta copia de los siguientes documentos: avalúo y certificados de no adeudo al Registro Público, con el correspondiente pago de impuestos para que el Registro haga la inscripción de la operación de compra-venta.

Ahora sí, puedes estar seguro que lo que acabas de firmar y el dinero que recién pagaste te convierte en el dueño de la casa que has soñado.

Self Directed IRA Real Estate Purchases in Mexico – SI or NO?

ventanamagazine.com
Author: Doug Jones - 2010


Many people these days are inquiring about the possibility of using their IRA to purchase property in Mexico. The problem of purchasing using a self-directed IRA is when a fideicomiso is required. By Mexican law, all foreign nationals purchasing in the restricted zone in Mexico require a fideicomiso. The restricted zone is 100 kilometers from the Mexico border, and 50 kilometers from the ocean. This means that a foreign national (i.e. US and Canadian citizens) needs a fideicomiso/bank trust unless they purchase in the interior of Mexico – areas like Lake Chapala/Ajijic, San Miguel de Allende etc. All lenders who are doing loans in Mexico require a fideicomiso EVERYWHERE in Mexico. This is a lender requirement, not a Mexico government requirement.

To purchase real estate property through your self-directed IRA, the property must be in the name of the LLC that is set up. When purchasing with a loan in Mexico, title MUST be taken in individual names - an LLC name is not allowed. If you purchase through your IRA AND use a loan, the loan must be no-recourse back to the individual. All mortgage loans in Mexico are recourse loans. Therefore, it is not possible to use a loan AND your self-directed IRA. To summarize:

There is no way to purchase a property in Mexico with both your IRA AND a mortgage loan in the restricted zone of Mexico (which is where most US and Canadian citizens choose to purchase).

You cannot purchase property with 100% cash from your self-directed IRA in the restricted zone because this requires a fideicomiso. To my knowledge, there are no fideicomiso/trust companies (banks primarily) that will allow the beneficiary of the trust to be in the name of the LLC/IRA – a requirement of the IRS when using self-directed IRA’s to purchase property – the property cannot be in the name of the individual which is how the fideicomiso needs to be created.

Your only option to use your self-directed IRA to purchase real estate in Mexico is to purchase in the interior with 100% cash, which does not require a fideicomiso. You will then also need to meet the strict “not for personal use” requirement of the self-directed IRA.

If you are interested in purchasing in Mexico and cannot use your self-directed IRA, I can do a loan for you with 25% down. Interest rates currently start at 6% and interest IS tax deductible on US tax returns as a second home, and possibly as a rental property for Canadians. We have all the reliable USDollar loan programs available in Mexico. We can also pre-approve you for a loan BEFORE you write a contract if you prefer. Feel free to contact me with any questions you may have. 

Guideline for a Successful Real Estate Acquisition

 ventanamagazine.com
 Author: Linda Neil


Buying property in any country can be stressful. A property investment in Mexico can be just as safe and secure as in the U.S. or Canada, if it’s done correctly.

Here are some guidelines for success in a real estate acquisition in Mexico:

1. Be sure the agent you select to represent you is a real estate professional. He or she should be a member of AMPI, the Mexican National Real Estate Association. Ask for references, check them out. Be satisfied the person representing you is experienced in Mexican transactions.

2. Insist that the person representing you, represent ONLY you, the buyer, and not also the seller unless you understand, agree to and sign an agency disclosure agreement.

3. Consider only the purchase of PRIVATE property. Ejidal property is often offered at a far lower price but it cannot legally be sold or promised to be sold until it becomes private property.

4. Be certain that you and your agent are dealing ONLY with the owner of record or his or her legitimate power of attorney. Insist upon receiving a copy of the seller’s deed as a condition of your offer. If you and /or your agent don’t understand Spanish, get it translated.

5.. Avoid costly and time consuming litigation, insist upon including a binding arbitration clause in your contracts with the seller and other parties involved.

6. Get a title investigation and buy title insurance for the full amount of your purchase price. While the initial search may seem expensive for some areas, the title policy transfers risk to the insurance company, and minimizes yours as the buyer.

7. Think carefully about how you acquire title in order to avoid or minimize probate and transfer costs in the future.

8. Closing costs may run from 13% to 20% of the cost of a $50,000. dollars property. The multimillion-dollar property will be about 3.5% of purchase price. Certain costs are fixed regardless of value. Be sure to budget for closing costs and get a full estimate in writing from the company supervising your transfer.

9. The major portion of your payment for the property should be held in escrow until the deed has been signed by the seller and, if applicable, the bank trustee (if a fideicomiso).

10. INSIST upon receiving a registered title document for your property. If the seller is financing the property, sign a document protecting his interests in the event of your default. Be SURE you know the amount which is declared in your deed and understand the tax implications of same.

11. Use an experienced neutral third party to supervise the transfer of title to you.

10 Tips for Buying Real Estate in Mexico

mexzip.com

• 1) Narrow Your Focus:

What is my Budget? Find how much you can get from your Bank
Size - How much space do you really need? a lot of retirees think that they need a lot more space than what

they end up needing. They think that maybe kids are coming down and they may need rooms for the whole family. If they are only coming once a year, they can rent or exchange vacation rentals.

Is Oceanfront a Must? look into your budget so we can see if we can get you into a condo or a private house. However if it is not a must, you can get a lot more house for your money on the street

Condo or Private House? there are prons and cons for both, there are people are are condo people and there are ones that are private house people. If you are only going to stay here a couple of weeks, then a condo may be a best option.

In Town or Out of Town? What kind of privacy do you want, do you want to stay near the big malls and supermarkets where there is a lot of people or do you prefer the privacy and tranquility of being out of town and near the nature

Is Rental Income a Factor? Maybe you want to find a house that has a rental history that you can rent to other people while you are not using it during the year

2) Before shopping, do you homework to find out what budget you will be able to work with, given your financial abilities. Once you know what is your real budget and you have talked with your Bank, then we can show you various great houses that may fit into your Budget and not waste time looking at homes that you cant afford or are out of your range.

 3) For Budgeting purposes, plan on 6 to 8% for closing costs. If you are purchasing something under $500,000 your closing costs are going to be closer to 8%, if you are buying a property over $500,000 your costs are going to be more like 6%

4) Use the same common sense that would apply to a transaction at home

5) Do NOT open a Mexican corporation if your intent is to own a private residence. You will find some statements to the contrary on the internet, but the Law is very specific, Fideicomisos are the way to Own private property within the Restricted Zones, do not open a Mexican corporation if you want to own a private residence. If you put your property into a Mexican corporation, disobeying the law, then you will put yourself into a corporate tax record and you will also be obligated to meet corporate filing obligations, in Mexico Businesses have to file corporate earnings every 30 days. So you will be paying an accountant $120 dollars a month to file zeros for your corporation  that is a private residence and it is illegal. 

6) Be Informed, Laws are modernizing in Mexico. Be smart about the information found online, some is outdated and some it is wrong. 

7) Do list the property at the full purchase price (less value of furnishings). It used to be a practice in Mexico to under Report Real Estate Properties, people would pay x amount and would report a different amount, for example they would pay $200,000 for a property but only report $100,000 to the Mexican Government. Dont do it its tax Fraud. That said you dont have to pay Taxes for used Furniture, if the cost of the property is $230,000 dollars but the cost of the furniture included is $30,000 then you only need to report $200,000 dollars as the cost of your property. 

8) Be very diligent if you are considering a Pre-Sale purchase. A Pre Sale purchase is when you are buying a property under construction or the construction is not yet completed and the Title is in process. Anything that you Buy before the Title is ready is consider a Pre Sale purchase, in Mexico there arent the type of consumer protection laws that are elsewhere and so you have to be careful. If you are considering a pre sale purchase hire an attorney to represent you on your behalf that will make sure that everything is right in that pre sale contract. 

9) Closing takes approx 60 to 90 days to complete and you must be present at closing. However the process of that Bank Trusts is now mostly automated online and is getting faster.

10) Use a Qualified realtor and do not be afraid to ask them questions.

10 reglas al contratar una hipoteca

10 de Febrero del 2014 | cnnexpansion.com

Un crédito hipotecario es un compromiso que durar desde cinco hasta 30 años, por lo que antes de contratarlo es necesario considerar la capacidad de pago a mediano y largo plazo y todas las condiciones del mismo, recomendó la Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros (CONDUSEF).

Antes de contratar un crédito con alguna institución financiera, la Condusef sugirió comparar la oferta existente en el mercado y considerar los siguientes aspectos:

1. Tiempo de respuesta para la autorización del crédito.
2. El Costo Anual Total (CAT). La tasa de interés del mercado, no garantiza el mejor financiamiento, ya que sólo es un componente de éste. El CAT incluye otros costos, como el monto de la comisión por apertura y comisiones por pagos anticipados, en algunos casos.
3. Compara las condiciones como enganche, gastos notariales, seguros, pago mensual y total, así como duración del crédito.
4. Considera el monto al que asciende la mensualidad exacta. Si se contrata un crédito a tasa fija, vigile que las mensualidades sean realmente iguales. 
5. Toma en cuenta que al contratar un crédito hipotecario, deberás pagar una cantidad por concepto de seguros. Generalmente este tipo de créditos incluyen seguro de vida, daños y desempleo. Infórmate sobre sus condiciones.
6. Verifica los diferentes planes de financiamiento que existen.
7. Al contratar un crédito deberás cubrir una serie de gastos iniciales como: el enganche (de 5% al 20% del valor del inmueble); el avalúo, una estimación del valor comercial de la propiedad; los gastos de investigación; gastos notariales (la escrituración, honorarios del notario público, impuestos, gestoría de certificados y gastos en el registro público de la propiedad).
8. Puedes encontrar financiamiento en tres tipos: en pesos, en veces salario mínimo, en Unidades de Inversión (UDI). Cada modalidad afecta el comportamiento del crédito, lo recomendable es elegir financiamiento en Pesos, ya que de esta forma siempre sabrás con exactitud cuánto debes.
9. Pide la Oferta Vinculante, este documento contiene el costo en pesos y centavos de tu crédito. La institución financiera deberá entregártela sin costo y se obliga a mantener los términos y condiciones en los cuales te otorgará el crédito durante un periodo de 20 días naturales. 
10. Planea tu presupuesto y verifica cuál es tu capacidad de pago. Los expertos recomiendan que tus deudas no rebasen el 30% de tus ingresos netos.

Después de contratar un crédito

• Lee tu contrato y verifica que cumpla con los compromisos establecidos durante la vigencia del crédito.
• Paga oportunamente. Mantente al pendiente de los días de pago, con esto evitarás los intereses moratorios.
• Consulta los estados de cuenta, éstos llegan cada mes y contienen todos los movimientos efectuados en el mes correspondiente. En caso de que no estés de acuerdo con el contenido del mismo, debes efectuar tu reclamación sin rebasar el límite de tiempo que te indica la institución financiera.
• Si es posible realiza pagos adelantados, esto te dará beneficios en la reducción del número de pagos e intereses.
• Aprovecha recompensas. Algunas instituciones te brindan beneficios al adelantar pagos, tales como descuentos en mensualidades y condonaciones de pago.
• Recuerda que las hipotecas son deducibles de impuestos, revísalo con tu contador y preséntalo en tu declaración anual.

Top Questions Expats Ask Before Buying a Property in Mexico

mexzip.com 

Can Americans own Property in Mexico?

Yes, Buying a Property in Mexico is possible for foreigners, but there are certain law restrictions that prevent them from owning property in the border called “Restricted Zone”

Property in Mexicos “Restricted Zone” can be owned by foreigners through a real estate trust, called a “Fideicomiso”



     
If you ask five different people you will get five different answers, there is a lot of misinformation  and a lot of false assumptions that people have. If you are thinking about investing in Mexico one of the things that you need to understand is that Mexico has a restricted zone and i think that restricted zone is what has been misinterpreted into the variations that you hear people discuss on weather or not you can own in Mexico.

The Restricted Zone it is a Ring around Mexico as you can see in the picture, the Red is the coastal Border and the yellow is the International Border and the Restricted zone is a 100km from anywhere in the border, 50km from any ocean border and forms this non even ring around the country.



To understand why the Restricted Zone exist you need to know that when Mexico created the National Constitution for security reasons to protect their borders they set the Restricted Zone.

Through a combination of congressional acts they have this Constitutional clause for Restricted Zone. They have said that any foreigners that purchase in the Restricted Zone will own the Real Estate in a Trust Called a “Fideicomiso”

The Fideicomiso works the same as an asset trust in Canada or the US with a bank serving as the trust holder. In Mexico the people that are able to administrate the trust is a federal authorized Bank
You are the Primary Beneficiary of the Trust. Primary Beneficiaries can appoint Secondary Beneficiaries.The trust has currently has a 50 year term, and is renewable into perpetuity

Foreigners cannot own Ejido Properties

Now, when we talk about a trust, if you are outside of the Restricted Zone that means if you are purchasing in the interior of the country, you dont need to put your property in a Trust.
If you are considering buy a property that is outside of your home country you should really consider put it in a Trust weather is in Mexico in the Restricted Zone or it is not, i would still recommend that you put your property into a Trust.

Why?

Because Foreign countries have no obligation to honor any Foreign wills, so if anything every happens to you, a document that you created back in Canada or the US has no Legal Jurisdiction in a Foreign Country. So what you do not want to happen is to end up your property in probate, should you die.
So a Trust creates a legally recognized entity within that country specifically designates the secondary beneficiaries and for that reason i will highly recommend if you buy a property out of your home country that you look if a Trust is an option.

Is My Investment Secure?

• Number one, we can use Escrow Accounts, those accounts are in the United States through license bondedescrow agents for your purchase, in other words you dont have to put your money at risk by sending funds directly to a seller prior to the transfer, put those funds into an escrow account.

•  First American and Stewart Title both offer insurance policies on fideicomisos. Is not obligatory, but it is available, you can purchase title insurance, which it says that if anyone should ever bring up an issue where your title is in jeopardy because of a survey error or because somebody was not who he said he was or something, Title insurance will pay to a defended and should you lose that court case they will reimburse your policy premium. Is not a necessary product here in Mexico, but if you want an additional layer of security on your investment, it is very reasonable priced.

What Happens if my Bank Goes Under, is my Fideicomiso at Jeopardy?

The answer is no, Fideicomisos are not considered assets of a Bank,  if they make stupid investments they dont put your Fideicomisos are jeopardy. If they close, your Fideicomiso will just get transfered to another Federal authorized Bank.

Security of Investment is also backed protected by the NAFTA agreement

What are My Financing Options?

Once you decided to buy an important consideration to make is Financing because in Mexico there is no Financing, the exceptions to that would be:

• Owner Financing: you want to purchase a private home that is own by an owner and the two parties set upsome type of payment arrangement and at the end of that payment period, once the property have been paid in full the property would be titled in to the name of the purchaser. There are certain laws in Mexico that make it very difficult and not recommendable for owners to do what we know in the US as a Land Contract. The buyers isnt taking ownership of the property until after closing.

Developer Financing: what most people usually do, they would have financing options from their home country. Now, i dont know of any US or Canadian Bank that would aloud you to use your Mexican properties as collateral of the loan, you can use:

• 1. Home Equity Loan
  2. Credit Line
  3. US Citizens: Self directed IRA Funds

What is the Cost of Ownership?

• Your Fideicomiso Brank Trust Fee is about $450 to $650 USD per year, varies by bank that you choose.
• The Predial Property Tax is 0.26% on Developed, Residential Property in Puerto Morelos or cancun, there is a discount if paid early.
• If you property is directly beachfront then you have a beach tax Zofemat and is assessed by the number of meters that you have at the beachfront. Typically houses pay about $1000 dollars some pay up to $1,500 depending on the house
• HOA fees (if Applicable, Property insurance, Utilities) If you have a condo you will have some Maintenance fees.

What is a Notary?

• A Notario, A licensed Mexican Attorney, authorized by the government to oversee transactions including the buy sell properties in Mexico. You have to have a notary involved in the sell of a property in MexicoNeutral 3rd party, makes sure that there are no problems with the property, paperwork is proper, all the due diligence of the title to make sure that is free and clear and ready for transfer.Create buy/sell agreement, Ensures legality of the transaction, performs title search and pay taxes and fees for each party.

How Long Can I Stay in Mexico?


If you come down to Mexico on airplane they give you a piece of paper that you fill out and then they tear apart the top and give you the bottom of the paper part stick it on your passport and you are on your way, that is your Tourist Visa that allow you be legally in Mexico for up to 180 days, if you put that you are staying for 2 weeks and then you decide that you want to stay 180 days, you can do it but you have to go to an immigration Office with your Tourist Visa.

When you Buy a house you can do it on your Tourist Visa, you dont need any special VISA.

There are Long Term Visas that are Available, there are a couple of reasons why you will want to get one:

1. Because it allows you to stay Indefinitely
2. The other thing is that if you plan to have a Vehicle in the Country, because you are going to buy one here or you are importing one down, you will need a long term Visa for that Vehicle.

If you are thinking about having a Vehicle in Mexico is strongly recommended that you purchase one here in Mexico. Bringing a Vehicle into Mexico is a hassle, Save your self the Hassle buy one here.

Mexico Home Selling Tips: Things You Should Always Remember

November 14, 2013 

simposioaoaclatina.org

Buying and selling house in Playa del Carmen isn’t like any other chore which takes place every second day. Hence the experience of it is comparatively lower which makes it difficult to maximize the profits. They also believe that all the affairs will be handled by the real estate agent as all are the same in terms of service. But listing with the first agent who comes along doesn’t solve any purpose and one should take time to research about the agent. As a seller you should also seek advice from friends, relatives, and co-workers. They can provide referrals for good agents and you can interview them. Those with the most signs posted, ads, and marketing material in the market can be spotted while driving around town.

A great way to check the efficiency of the agent in Playa del Carmen is how responsive he is. When you contact the Playa del Carmen agent, how soon do you hear back from him?  If he is professional enough then it would be immediate and otherwise not. Referring at their personal marketing material also gives a good idea but not all agents might have it. The experience at listing, marketing and selling homes of an agent matters a lot hence you should ask in detail about this. The agent should be able to produce a track record that reflects experience. One shouldn’t focus on the time period spent in the industry rather on the sales made. Time is precious so check if the agent it utilising it or wasting it. Make a comparison of time taken by the agent to sell a home with other agents in your area. Don’t assume that if an agent conducts a quick sale, he is fetching maximum for it. Also knowing what was the asking price of the houses and actual selling price helps one in making a suitable choice.

It is important to know to which professional organization the agent is affiliated. It is also a good idea to look for agents who belong to local community groups and associations such as the chamber of commerce. This will help to keep legal hassles at bay and as they have good networking abilities hence one can find more potential buyers.

Being the seller you should also know the type of supporting staff the agent employs. If the agent has an assistant or staff, the details of the business will be managed by them. This leaves the agent with more time to care to your needs. However don’t let the assistant be the man of the show and ask the agent to be present at the most critical times of the transaction. He should also be able to plan schedule for open houses. The agent should have marketing strategy to deal it with and not simply put it off for every Sunday.

It is essential to decide on the asking price after reviewing the comparable sold prices in your neighborhood with your agent. Since pricing is a critical aspect of selling your home, he should understand it very well. The decided price should be such that it attracts potential buyers, offers you profit and also reflect the current market conditions as well as the overall condition of the house. However this doesn’t mean one should paint a false rather honesty should the best policy.

The agent should be able to answer as to what the listing agreement entails, the end and start of it as well as the fees that need to be paid. Make sure you understand every detail in the listing agreement. Keep the beginning and expiration dates fixed on the agreement. Only with adequate amount it is possible for the agent to market your property effectively. Hence beware of those agents who offer to list for a lower commission. They might seem as a lucrative option but they will likely not show and sell your house. Reduction in commission will lead to your loss as the house will stay on the market longer and sell at a lower price. If you want to sell your house for top dollar then you have to pay full commission.

Be clear about the disclosure laws and discuss them with your agent. He will help you in finding professional inspectors required for the various mandatory home inspections. Hence make a document where you can file a property fact sheet, a property transfer disclosure statement, pest control report, applicable study zone report, structural engineering report, property profile from the title company, plans for alterations or additions, and special equipment report for pools, spas, sprinklers and alarm systems. To avoid complications at the time of sale these information should be kept ready.

To get the best deal your agent should be different from the rest. He should have marketing plan so that there is effective advertising including 24/7-hour advertisement capability. If they rely on outdated techniques then you should be ready to tick them off from your list. They will simply waste your precious time and money if they are still expecting that by putting an ad in the newspaper the job will be done. Ensure that your agent has access and knowledge about numerous ways by which your home can be made available to the buying public.

Your agent is like the backbone who can make or break a deal. Hence choose them by keeping all your senses alert. Ask as many questions possible until you are fully convinced. Test his knowledgeable regarding the houses that were currently sold and inquire about his past record. A genuine and reputable agent should be able to guide his client towards the right direction. Finding a good lender that has the reputation of excellent customer service and low rates to assist with financing is an easy job for such agent. Keep in mind these points to achieve a quick sale at a great price.

Purchasing your dream home in Mexico

theyucatantimes.com

Mexico is an exciting place to live for those who are retiring, for those who are working  from home on a computer link with their company, for those who are looking for a vacation  home or an outstanding investment… above all, for those who dream of a better quality of life!

 

Home… the word represents security and comfort for the majority. All too often the  word, when used in conjunction with a purchase of property in Mexico creates stress, worry and, at times has been associated with financial loss. This needn’t be the case. Procedures in searching titles and transferring property are similar to those of the United States and Canada.

 

The buyer of a house, condominium or lot in Mexico must ask the same questions, and should  receive answers similar to those received when buying a property elsewhere.

 

RULE NUMBER ONE: 

 

SELECT THE COMMUNITY AND THE COMPANY THAT FITS YOU 

 

 In considering the purchase of something so important as a home it is necessary to  have the right people representing the buyer and his interests. This can be accomplished by  first selecting the general area where you think you’d like to live. A review of the local  newspaper or telephone directory will give a listing of the real estate companies in the area.

 

Through NAFTA agreements, the Association of Mexican Real Estate Professionals (AMPI) is  now affiliated with the U.S. National Association of Realtors (NAR), the Canadian Real Estate  Association (CREA), and the International Real Estate Association (FIABCI). These important  national real estate organizations are working to achieve standardization of real estate  practices and procedures throughout the world. The company you select to represent you in  your Mexican property purchase should be a member of AMPI. Not only is the AMPI member company required to operate under a higher standard of care, and to adhere to a code of  ethics, but also it may have access to an increasing number of the properties available for sale  through computerized data bases.

 

Once the area is selected and a list of the AMPI companies operating there has been  obtained – interview the owners and operators of the companies. Ask for references, ask for a  professional resume. Interview carefully the persons that most impress you. The person you  select should be familiar with area, with basic real estate principles… and should impress you  with his or her honesty and drive to find what YOU are looking for. Once you have found the

 

person you feel comfortable with, stick with him or her and let him do his job. The sales person  who knows you aren’t shopping around will generally work harder to find exactly what you are  looking for. Remember, it is your money and your commitment. Do not be pressured by  someone who is charming but who does not listen carefully enough to understand YOUR special needs.

 

RULE NUMBER TWO: 

 

EXAMINE THE NEIGHBORHOOD 

 

 Once you have selected the right community, an agent with whom you feel comfortable, AND a possible property, check out the neighborhood. Is it new? Is it old? What will it look  like in ten years? Are highways or other development projects planned for the future? Where are schools, churches, shopping facilities? Are there homeowner fees for maintenance of common areas? If so, how much are they and when are they paid? Are all the utilities in and paid for? What does the developer have left to do? What building restrictions are there? Are there covenants and conditions registered for the usage of the land?

 

In many parts of Mexico there is no enforcement of a master plan or building codes. This can affect the changing face of the neighborhood you have selected.

 

RULE NUMBER THREE: 

 

BUDGET FOR YOUR PURCHASE, CHECK TITLE AND UNDERSTAND THE MEXICAN BANK TRUST (FIDEICOMISO) 

CLOSING COSTS: 

 

Closing Costs will range from 4% to 30% (yes, 30 %!) of the total cost of your property.

 

The higher the price of the property, the lower the percentage of total costs for closing. This is because certain expenses for permits and certificates are fixed, regardless of the value of the property. Costs of transfer include title search, transfer taxes, bank fees, government permits and notary fees. Your seller may assist in some of these; especially those related to title search and insurance. Be sure to get a written estimate so that you will not have unwelcome surprises at the date of transfer of title! While your real estate agent may know the procedure, his or her specialty is to identify the correct property for you and to negotiate advantageous terms for the purchase. The technicalities of the transfer; negotiations for permits, registrations and so forth are generally more objectively and thoroughly handled by a neutral third party who does not have a financial interest in the transaction.

 

CHECK THE TITLE: 

 

Does your seller have a registered title to the property? Many foreign buyers, in order to avoid the closing costs, or through ignorance, have paid for their property, taken possession of it, and have never obtained a registered title! Ask for a copy of your Seller’s title documents and reserve the right to examine them prior to the release of any part of your payment. If they are in Spanish have them translated and, if in doubt consult with a neutral third party about their probable validity. It should be added that if the seller has never acquired title to the property he is selling, it can often be remedied. The buyer should be aware of this condition, however, and be certain that the person who accepts his offer is truly the holder of the title. Additionally, he should make arrangements for the additional costs, if any, involved in this double transfer.

 

UNDERSTAND THE MEXICAN TRUST – FIDEICOMISO 

 

Payment of the purchase price is not enough. In order to have a valid ownership interest in the property which you are buying it is necessary to have the title recorded. This puts the rest of the world on notice that the property is yours. If you are a foreign person purchasing property in many parts of Mexico, including the entire Baja peninsula, the property will transfer not to your name but to the name of a Mexican bank as trustee for your interests.

 

The Mexican constitution prohibits direct ownership of real property by foreigners in the ”prohibited zone”, a strip of land thirty miles wide along its seacoasts and sixty miles wide along its borders with the United States and Guatemala/Belize, as well as the entire Baja peninsula. This is the reason for the bank trust, the “fideicomiso”, which has been established under the guidelines of the Mexican government so that foreigners may be protected in their property acquisitions.

 

Whether you are purchasing in a zone requiring a bank trust or in an area where title can be taken directly into your name, it is necessary that this transfer take place and your  interest registered as soon as possible after the successful conclusion of the negotiations to purchase your dream property. Until this transfer takes place you are vulnerable: the seller may die, the heirs may be unwilling to recognize your rights in the property, and you may become involved in a lengthy and expensive probate proceeding. Meanwhile, your interest may not be recognized by the authorities should you wish to obtain a building permit, by the bank should you wish to borrow money and use the property as collateral or as part of your assets; by the courts should a third party also claim an interest in the land, or, very importantly, should you later decide to sell it.

The prudent buyer of real estate in the United States or Canada would not consider leaving his title “in limbo” in either of those two countries; one should not do so in Mexico either.

 

The foreigner purchasing real estate in Mexico is buying personal, not real property if the acquisition is on the Baja Peninsula, within thirty miles of any coastline on the mainland, or within sixty miles of any border. The acquisition is personal property.

 

How does personal vs. real affect the foreigner who acquires property under a Mexican bank trust? The effect is negligible. Instead of using the words; “transfer of title” one should more properly say “transfer of trust rights”, or, “assignment of trust rights”. In practical terms the beneficiary has full control of the property. He may direct the trustee bank to 1.- lease the property, 2.- mortgage the property, or 3.- sell the property.

The foreign owner enjoys full rights of usage and may do anything to the property permitted under Mexican law. He enjoys the same rights of dominion as any Mexican citizen who has direct title to the property. He may construct a building, tear it down or modify it in compliance only with the local zoning and planning ordinances or, if applicable, the homeowner’s condominium regime.

 

A permit to acquire the rights in the property must be obtained from the Secretary of Foreign Relations and the terms of the permit form a part of the deed. Currently, the term for a trust is fifty years. Multiple renewals are permitted under the law. By requesting extensions each fifty years a property may be controlled by a family or business entity for generations.

 

RULE NUMBER FOUR:

 

INVESTIGATE THE STATUS OF THE CONDOMINIUM REGIME 

 

A word of caution for those who are considering the purchase of a condominium or a lot in a subdivision. Just as in other countries, the unit, or lot must be legally described and an individual property tax number issued. This individual property must be registered in both the Property Tax Office and in the Public Registry of Property. Often, a developer will spend time and energy on promoting the sale of the properties prior to completing the establishment of the Condominium Regime. Until this is completed, legal title to an individual unit or lot cannot be granted since there is nothing to describe! Be sure to investigate the status of the condominium regime prior to completing the offer to purchase!

 

RULE NUMBER FIVE: 

 

INSIST UPON RECEIVING A REGISTERED TITLE 

 

The purchase/sale document signed by buyer and seller is generally legally valid between the parties to the transaction. It most likely contains the description of the property, the price to be paid to the seller, and any other special terms and conditions. It may be drawn up by the parties, their agent(s), or by a third party. It should be considered as an interim contract, however. Until the final deed is drafted by and signed before a Mexican Notary Public and duly registered, the transfer WILL NOT provide valid notice to third parties. 

 

This final deed must be recorded in the Public Registry Office of the municipality in which the property is located. Mexico’s land registry system functions in much the same manner as those in the  United States or Canada.

 

Unless the deed for the rights of the beneficiary has been recorded, there may not be a remedy for the purchaser who neglected to obtain a registered deed… his interest, his investment, may be lost.

 

When a foreigner is acquiring residential property for which a bank trust is required, the purchaser should receive a deed which has been signed by the bank trustee before a Mexican Notary Public. This will name the beneficiaries and substitute beneficiaries of the trust in accordance with the purchaser’s instructions. A full description of the property must be included, seller’s capital gains taxes paid and buyer’s acquisition tax paid. These receipts should be included in the deed document which may consist of eight or ten pages, or more.

 

The final page of the document should bear the stamp of the Public Registry, together with Book and Page numbers and the date on which it was recorded. If this stamp is not on the document, the transaction has not been completed, the buyer is not fully protected.

 

CONSIDERATIONS IF FINANCING YOUR PROPERTY:

 

Until recently, most homes and condominiums were for sale for all cash or financed by the seller. With the advent of NAFTA however, several mortgage companies have entered the Los Cabos and Cancun, Riviera Maya marketplaces and offer long-term financing for qualified buyers. If you are considering financing your purchase, and are buying in a location where financing is offered, it makes sense to investigate the terms and plans available, select the company of your choice and make lender approval a condition for the purchase.

 

If the seller will be financing your purchase, request that title be transferred to you and a pledge guarantee contract executed guaranteeing payment. Traditionally, sellers have preferred to hold title to the rights in their name and transfer title to the rights only upon receipt of payment in full from the buyer. Meanwhile, however, the seller may die, may disappear, may go bankrupt… a risky situation for the buyer. The prudent buyer will insist upon a transfer of title and registration of a mortgage or pledge in which he gives his rights in the property as security for payment of the remaining purchase price. In the event of default by the buyer, the seller must conduct a proceeding similar to a judicial foreclosure in the United States and Canada. It is troublesome, as is any foreclosure in any country in the world but not notably more problematical. The registered title and recorded pledge or mortgage provide the buyer a greater comfort level in his investment. The lender also enjoys protection in having his loan recorded and will have an established legal proceeding to follow in the event of default by the buyer.

 

CLOSING COSTS…. OR HOW TO AVOID UNPLEASANT SURPRISES. 

 

Mexican law says that taxes must be paid on the higher of the following: purchase price OR appraised value. Since many appraisals are lower than the actual selling price your taxes will be considerably lower if the appraisal value is declared. Payment on this basis has taken place for many years in many parts of the country. It is, however, illegal. Should you choose to pay your costs based upon this basis, please be aware that: 1. it is violation of the law and 2.

 

your tax base will be low for declaration of value in the property when you sell it. Furthermore, if you are financing your property through an institutional lender, full value must be declared.

Following is an example of some of the steps involved in obtaining a registered title.

 

The costs for same will vary with the property and a written estimate should always be obtained

prior to initiating the process.

 

OFFICIAL APPRAISAL: The appraisal must be made by an appraiser who is usually an architect and who is recognized as a Perito Valuador, Official Appraiser, by the property tax authorities in the municipality where the property is located. This is required prior to completing any transfer of title. If an institutional lender is involved, a commercial appraisal may also be required.

 

FOREIGN RELATIONS PERMITS: If the property you are purchasing is already in a trust (fideicomiso) you may either: request assignment of the rights to you, or may request a new trust for fifty years. If a new trust, a permit from the Secretary of Foreign Relations is required.

 

Whether a new trust or an assignment of rights, the deed in the new buyer’s name must be registered in the National Foreign Investment Registry. When considering a new trust or an assignment of rights, the factors to be considered are: 1. Remaining term of the existing trust - when will it need to be renewed?; and 2.-What are the annual bank fees under the existing trust?

 

If the permit has an unexpired term of less than fifteen or twenty years and/or the annual bank administration fees are more than $500.00 U.S. dlls., it probably makes sense to obtain the permit for a new fifty year trust with a bank offering more attractive fees.

 .

NOTARY FEES: The Mexican Notary Public is an attorney who has practiced his profession for at least five years and has been appointed by the governor of the state in which he is practicing. His duties and obligations include; drafting of the deed, calculation of seller’s capital gains taxes and buyer’s acquisition taxes and to “give faith” to the validity of signatures. The persons signing before him must prove they are who they say they are. Because the

 

responsibility and potential liability for the actions of the Mexican Notary Public are considerably higher than those of Notaries Public in the U.S. and Canada, the notary’s fees will also be substantially higher than those charged on the other side of the border. These fees are based upon a rate schedule reviewed and approved annually by the College of Notaries Public and are tied to the amount declared in the property transfer.

 

I.V.A. - The Impuesto Sobre Valor Agregado (I.V.A) is a value added tax which is charged on all services. 

It is 10% of the value of services provided on the Baja Peninsula and 15% for services provided on mainland Mexico. Many trustee banks are headquartered on mainland Mexico, thus the I.V.A charged on their services will be 15%. IVA taxes must be paid on services provided by the Notary, the appraiser and any other professionals whose services you

use.

 

BANK ADMINISTRATION FEES: If title to your property is in a bank trust there will be annual fees for the administration of same. Over the past few years there has been a substantial decrease in annual fees and it makes sense to shop around for the most favorable rate for the property being purchased if a new trust is contemplated. If an assignment, new rates may possibly also be negotiated. Traditionally, trustee banks have not sent annual statements. It is important to request a statement from your trustee bank at least ninety days prior to the anniversary of the trust and pay on time to avoid penalties, or to contract with a company providing this payment service.

 

TITLE SEARCH AND INSURANCE: A title search is always a worthwhile investment. An investigation will generally indicate the registered owner, the chain of title, and will indicate liens, if any, against the property at the time of the investigation.

 

Title insurance, issued when the new deed is registered, guarantees the marketability of the property and is a requirement by most institutional lenders. There are currently three US title insurers offering policies on Mexican properties. In the event there is a problem with title, the insurer is obligated to defend the owner’s rights in the property and/or indemnify the owner against financial loss. Investment in a title policy puts the financial risk on the insurer, not the buyer who may not be able to defend the property as well as a major insurance company.

 

PROPERTY TAXES: are a municipal tax and income benefits the municipality. Typical rates for residential dwellings is 6.5 (pesos) per 1,000 and 13 per 1,000 for properties destined as rental units. Vacant lots are rated at 26 per 1,000 with an increase of 2.6 per annum for each year there is no construction declared on the lot. Maximum amount is 52 per 1,000.

 

Valuations for property tax purposes are generally made every two to three years or at the time of sale of a property. Property taxes must be brought current prior to transfer of the title.

 

ACQUISITION TAX: The acquisition tax, or transfer tax, is generally paid by the buyer. It is currently 2% of the declared value of the property in most parts of the country.

 

CAPITAL GAINS TAXES: A foreigner who sells property in Mexico is liable under special rules, much like the United States, for the payment of the I.S.I.R. (Impuesto Sobre la Renta) which is the Mexican equivalent of the Capital Gains tax. Liability is either 20% of the declared value of the transaction or 28% of the net value, taking into consideration the length of time held, the improvements made, commissions paid and other allowable expenses. The formula is complicated and the tax should be figured both ways and confirmed by the Notary Public who will be having the documents recorded and making the tax payments. 

 

This is a seller tax and title cannot transfer to the buyer under this tax has been paid.

 

SETTLEMENT FEES: Attorneys and Notaries Public often oversee parts of the previously described required steps to a transfer. The buyer, however, usually has to do certain of his own legwork and can certainly do so if he has a good command of the Spanish language.

 

Unless the buyer has a lot of time to spend on the activity, it may make sense to hire a company whose sole purpose is to supervise and coordinate the permits, tax payments and other myriad of details so necessary to obtain full legal right to the property being purchased.

 

Fees for these services will vary with the value of the property and the complexity of the situation. It is important to always request a written estimate of all the expenses prior to beginning the transfer!

 

By Linda Neill