The Top Mexico Real Estate Guide: Buying Safely is advice and information directly from ten of Mexico's leading experts in real estate, both brokers and legal advisers. The information is presented in a clear, straight forward manner for Americans and Canadians new to purchasing real estate in Mexico
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Top Mexico Real Estate Guide: Buying Safely
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2. TOP MEXICO REAL ESTATE GUIDE: Buying Safely Directly from TOP Experts in México Listings Compiled and Introduced by: Thomas Lloyd Founder and President of TOPMexicoRealEstate.com Contributing Authors: Cyndi Ader, Cancun Ivan Castillo, Stewart Title, Riviera Maya Liliana Gonzalez, Morelia Michael Green, Puerto Vallarta Mitch Keenan, Merida Rebecca Loto, Costa Maya Hector Moreno, Tulum Linda Neil, La Paz Tim Sullivan, Ixtapa Editor: Jacob Wall Design and Electronic Formating: Carlos Yah Published by TOPMexicoRealEstate Copyright 2010 TOPMexicoRealEstate
3. Table of Contents Listings FOREWORD…………………………………………………………………………………………………………….. 5 DEDICATION……………………………………………………………………………………………………………. 6 INTRODUCTION………………………………………………………………………………………………………... 7 Chapter 1: PURCHASE PROCESS…………………………………………………………………………………… 9 What are the steps in the real estate purchasing process in Mexico? What is the difference in purchasing pre-construction vs. resale? How do escrow accounts fit into these processes? CHAPTER 2: BANK TRUST AND RESTRICTED ZONES…………………………………………………………. 24 What is a bank trust and how is it related to the restricted zone? Do I need to use a bank trust if purchasing in central Mexico?. When should I use a Bank Trust and when should I use a Mexican Corporation?. CHAPTER 3: OFFER TO PURCHASE……………………………………………………………………………….. 38 What should an Offer to Purchase include?. Is the Offer to Purchase a legal document or is it informal? Does it need to be notarized?. Who should prepare the offer?
4. Table of Contents Listings CHAPTER 4: PROMISSORY CONTRACT ………………………………………………………………………… 47 What is a Promissory Contract? What are the top 3 items to look out for in a Promissory Contract? When is it prepared? How binding is a Promissory Contract? What is the Purchase Sales Contract? When do we use this contract? CHAPTER 5: THE KEY PLAYERS IN A MEXICO REAL ESTATE TRANSACTION………………….……….. 57 Who are the key players? What is the difference between a Listing Agent and a Buyer's Agent? How important is it to find the right agent? What role does each key player have in the purchase process? CHAPTER 6: CLOSING COST ESTIMATES…………………………………………………….….…….………… 70 What items are in the closing costs? What percentage should I estimate for these costs? Are there any other costs outside of closing costs that may occur? CONCLUSION…………………………………………………………………………………….…….……………… 77 APENDIX……………………………………………………………………………………..………….…...…………. 79
5. Introduction This guide was especially designed by a team of leading experts for American and Canadian buyers who are new to the Mexican real estate purchasing process, or for buyers who, having been somewhat involved in Mexico's real estate culture, have realized that they really need to check out the details, and get it right for the next time. The guide was developed on a "Frequently Asked Question" concept, taking the questions that you as buyers new to Mexico's market will most often ask, and complementing these with questions that buyers should ask, but usually do not. The Network of experts from TOPMexicoRealEstate answered these questions; each chapter contains a set of questions covering one general theme, and each page of the chapter contains the answers from one real estate expert. The TOPMexicoRealEstate Network Each of the experts contributing to the Top Mexico Real Estate Guide is a member of the TOPMexicoRealEstate Network, and has worked in a specific region of Mexico's real estate market for numerous years, gaining experience and knowledge both specific to their area and also generally applicable to all real estate transactions in Mexico. In contrast to some books about Mexican real estate prepared by professional writers, The Top Mexico Real Estate Guide is written by actual realtors and other experts in Mexico who have worked directly in their market area for years, gaining their hands on knowledge through hundreds of real. property transactions; this is the most important underlying factor of being a member of this network and contributing to this guide. These realtors are also members of professional organizations, such as NAR in the U.S., or AMPI, Mexico's Professional Association of Realtors, and have certifications from special courses, in order to build on and complement the knowledge they have from experience. Welcome to the Top Mexico Real Estate Guide! Although many aspects of buying properties in Mexico are similar to the processes we already know from the U.S. or Canada, there are some very important details that you, as a non-Mexican buying here, should know in order to complete your property transaction safely. Listings
6. … Introduction Volume 1, "Buying Safely" In this volume, "Buying Safely," the TOPMexicoRealEstate experts share the basics of this vast store of information and advice to present you, the foreign real estate buyer in Mexico, with the first, indispensable elements you need to buy here, reducing unnecessary risks. While every property transaction is different, and every region is slightly different (which is reflected in the variation of focus in the realtors' answers), this compilation of the top experts' views on the key issues will first deliver to you the information that always distinguishes a property transaction in Mexico from one in the U.S. and Canada; secondly, you will have a brief glimpse of the subtleties that distinguish one property type from another, one region from another, and one transaction from any other transaction that has taken place before. Top Mexico Buyer's Guide: "Buying Safely" will give you the tools you need to make solid choices regarding your real estate purchase, and to take steps towards completing your transaction correctly and SAFELY. Future Volumes In the near future, further volumes will be published, exploring intricacies of specific reasons for purchasing property in Mexico, including investment and retirement. I am sure you will enjoy this volume, and, more importantly, find the information you need to start your real estate search and purchasing process in Mexico. I would like to invite you to keep in close contact with our web site and with our offices in order to receive announcements for future releases of further guides and to keep up to date on advice from the TOPMexicoRealEstate experts. If you are starting your Mexico real estate experience with this guide, our hope is that it will help explain and introduce the process in a manner that is easy to understand, in order to allow for a satisfying, enjoyable, and rewarding experience. We look forward to your comments and observations on this work. Thomas Lloyd Founder and President of TOPMexicoRealEstate.com Listings
8. CHAPTER 1 : PURCHASE PROCESS The process for non-Mexicans buying properties in Mexico is similar to the United States and Canada, yet several extra steps are required. The most notable extra steps arise from the requirements of registering and obtaining permission from Mexico’s Secretary of Foreign Relations, and if you are buying in the “Restricted Zone”, the additional steps of establishing a bank trust or Mexican corporation. Local, state, and federal laws outline real estate transactions and property rights in Mexico; however, the protection for the parties is not as detailed and as regulated as the property acquisition process established with Mexico’s northern neighbors. While many people may see this as a deterrent, this also allows for opportunities, so long as you have a good on site experienced real estate team representing and protecting your interests. A very popular real estate product in Mexico during the past five years for non-Mexicans has been the option of purchasing properties during the pre-construction phase. This option has allowed investors and buyers to receive additional benefits such as substantial discounts and the option to design the home to the particular buyer’s tastes and needs. As the panel of Top Mexico real estate experts discuss, the difference in the process of purchasing a pre-construction property versus an existing structure focuses around the time frame of delivery. An existing building in general, is ready for immediate transfer of the physical possession as well as legal possession to the new owner. On the other hand, a pre-construction project will have a date established in the future for delivery of both the physical and legal possession. This introduces an identifiable risk to the buyer, but this is compensated by discounts on the property price. The top brokers go into the details of the advantages of each and also discuss the role of escrow accounts in a normal Mexico real estate transaction. Thomas Lloyd Listings P URCHASE PROCESS B ANK TRUST AND RESTRICTED ZONES O FFER TO PURCHASE T HE KEY PLAYERS IN A MEXICO R. E. TRANSACTION C LOSING COST ESTIMATES OTHER ANSWERS Cyndi Ader CANCUN MEX (984) 267-2449 USA (512) 879-6546 P ROMISSORY & PURCHASE SALE CONTRACT Ivan Castillo Stewart Title, Riviera Maya Tim Sullivan IXTAPA Hector Moreno TULUM & AKUMAL Liliana Gonzalez MORELIA Linda Neil LA PAZ Michael Green PUERTO VALLARTA Rebecca Loto COSTA MAYA Thomas Lloyd PLAYA DEL CARMEN Mitch Keenan YUCATAN
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22. To get the full version visit: : http://www.topmexicorealestate.com/real-estate-books/ Listings