A licensed real estate agent is a professional that meets all the requirements established by Mexican authoritie
Sekuralaw tip: You can contact us if you find yourself in a situation where you can’t find a licensed broker. We can provide you with a list of experienced professionals and corporations that are known to have a real estate license and several other credentials to back their practice.
It is a simple process if you have the right people by your side. The most important person, at the beginning, is your real estate agent a.k.a. broker or realtor. He or she will show you the best options available, just make sure they are a licensed agent.
It is the value of a real estate and the amount agreed by the parties (seller and buyer) in order to complete a transaction.
Also known as ISABI (Impuesto sobre la adquisicion de bienes inmuebles) such tax is 3% of the purchase price recorded in the public deed.
Sekuralaw tip: you should always establish the amount that you paid for a real estate in your title (public deed) and when you receive your original title, make sure that the ISABI receipt is enclosed in the public deed.
Such offer or letter of intent is always the first document that you are going to sign in order to begin with the closing process.
The offer is usually followed by an earnest money deposit, which could go from $5,000.00 usd to $10,000 usd.
Sekuralaw tip: In a resale, always look to set an escrow account for such earnest money.
It is the process to acquire a property in Mexico through a Public Deed (Title).
Sekuralaw likes to keep everything simple, therefore, we established 5 steps for a smooth closing:
- Due diligence
- Promissory Agreement
- Fideicomiso (Trust)
- Execution of the Public Deed
- Recording of the Public Deed
If you are going to acquire a real estate in a re-sale, we highly recommend that you hire an architect or engineer to review the property in order to avoid any future surprises.
The notary public is the only attorney with the faculties to formalize a real estate transaction in a Public Deed (Title), within his or her faculties, the notary public has the obligation to retain all the taxes related to the real estate transaction.
SekuraLaw tip: Always request a breakdown of the notary public costs and fees, with the only intention of having a crystal-clear idea of the closing costs.
It is a requirement established by the Mexican law, in which all the real estates located close to the borders or the maritime zone have to be conveyed through a fideicomiso when the buyer is not a Mexican citizen.
Sekuralaw tip: It is always better to get a fideicomiso than a Mexican corporation.
It is the translation of “Title” in Spanish. The Escritura Pública is the legal document that you need as a proof that you are the owner of a property in Mexico.
You will see 3 amounts in a Public Deed (title).
The first one is the cadastral value, such value is provided by the municipality and is usually going to be the lowest value or amount in the Public Deed, this value is the base of the property tax calculation.
The second one is the appraisal value, usually the appraisal is the same amount as the commercial value (purchase price).
The third and most important one is the purchase price or commercial value, such amount is the one that the parties agreed to.
You can get your fideicomiso through a permit granted by the Ministry of Foreign Affairs, such permit is requested with the assistance of a Mexican bank, which is going to be your future trustee bank. After you get such permit, you will get your title with the fideicomiso in the public deed.
The cost to set up the Fideicomiso is around $2,000.00 usd.
Such amount includes:
- Execution of the Public Deed by the Trustee bank.
- First year in advance of the trustee bank fees.
- The permit of Ministry of Foreign Affairs.
Every real estate transaction is different, and the location of the real estate could make a difference, let me explain why.
In the municipality of Benito Juarez (Cancun) the acquisition tax (ISABI) is 3.3% per cent of the purchase price, and in Solidaridad, the same tax is 3.0% percent of the purchase price.
Sekuralaw tip: Before you make a decision, request an approximate closing cost. It could take around 2 hours to get it. Afterwards, you can make an informed decision with the right numbers.
The best answer is YES. In a re-sale the escrow account is the best tool for a safe and smooth real estate transaction.
Sekuralaw tip: We highly recommend working with Armour Secure
We highly recommend to always use a fideicomiso (trust), this is the best option.
However, if you are looking to do any kind of business in Mexico, you can formalize a corporation and then you can acquire the real estate on behalf of the Mexican corporation.
SekuraLaw tip: Fideicomiso is always the best option.
If you are looking to do business in Mexico, the first step is to formalize a Mexican corporation, bear in mind, you will need an accountant.
The accountant is very important because your corporation has to send monthly statements to the IRS of Mexico known as SAT. It doesn’t matter if you have earnings or not.
The most important in a due diligence is the Public Registry of the Property and Commerce. All the real estates need to be duly recorded in the Public Registry of the Property and Commerce.
Therefore, you can review the legal background of the property and be sure that is free on any lien or encumbrances.
Sekuralaw tip: It is a great idea to get a certificate of no lien at the moment that you execute the promissory agreement.