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Top Mexico Real Estate Guide: Buying Safely

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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 …

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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  • 1.
  • 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
  • 7. CHAPTER 1 PURCHASE PROCESS 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
  • 9. CHAPTER 1 : PURCHASE PROCESS (cont)
    • The most important steps when purchasing a property in Mexico, as compiled from
    • the TOPMexicoRealEstate experts who answer in the following pages, are:
    • IDENTIFYING YOUR AREA OF INTEREST.
    • SELECTING AN EXPERIENCED REAL ESTATE AGENT (see Chapter 5: The Key Players in Mexico Real Estate Transactions).
    • RESEARCH & STUDY THE MEXICAN PROCEDURES AND LAW OF REAL ESTATE TRANSACTIONS.
    • SEARCH FOR PROPERTIES ON LINE AND HAVE YOUR AGENT EXERCISE A PRELIMINARY QUALIFICATION OF YOUR CHOICES.
    • 5. TOUR PROPERTIES AND MAKE PHYSICAL VISITS - EVALUATE PROS AND CONS
    • 6. DECIDE WHICH ENTITY WILL HOLD THE PROPERTY ON YOUR BEHALF
    • (see Chapter 2: Bank Trust and Restricted Zones ).
    • 7. CHOOSE A PROPERTY AND MAKE THE OFFER.
    • 8. PREPARE THE PROMISSORY CONTRACT OR PURCHASE SALES CONTRACT.
    • (Note: Liliana Gonzalez adds that because her region is outside of the restricted
    • zone, her non-Mexican clients go straight to the Purchase Sales Contract)
    • 9. INSPECTION OF THE LEGAL DOCUMENTATION AND OBTAINING PERMITS
    • (See Linda Neil and Cyndi Ader answers in this chapter).
    • 10. FORMALIZATION OF THE CONVEYANCE AND FILING IN PUBLIC REGISTRY.
    Thomas Lloyd Listings OTHER ANSWERS Cyndi Ader CANCUN P URCHASE PROCESS B ANK TRUST AND RESTRICTED ZONES O FFER TO PURCHASE P ROMISSORY & PURCHASE SALE CONTRACT T HE KEY PLAYERS IN A MEXICO R. E. TRANSACTION C LOSING COST ESTIMATES MEX (984) 267-2449 USA (512) 879-6546 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
  • 10. After finding just the right property, a purchase offer is drawn up. At this time a good faith deposit is made (usually about 10% of the sales price). Sometimes the deposit is made when the offer is accepted. Escrow is not common in Mexico and many brokers do not offer this service, which means either the broker will be holding the deposit or the owner of the property. Some brokers will offer you escrow service, which can help make depositing and finishing the transaction safer. Escrow services from well known US companies are available and are recommendable to use when possible. It is an extra expense, but it can be worth the added security. The drawback is that many sellers do not understand the escrow concept and may not accept it. Most developers will not accept escrow as they use funds to build. A broker should always discuss the available options for deposit beforehand so the buyer will know who is receiving their money. In most cases deposits are not refundable. Once an offer is accepted, the deposit is made, the contract is signed, and the closing process will begin. The first step is to fill out the application for the trust permit and present required documentation. In Mexico foreigners may not hold direct title to a property in coastal or border areas and must establish a trust through a Mexican bank for the purchase. (More information on this subject in Chapter 2: Bank Trust and Restricted Zones. ) It normally takes 3-4 weeks for the permit to be issued once all required documentation is received. OTHER ANSWERS
      • W hat are the steps in the real estate purchasing process in Mexico?
    Cyndi Ader CHAPTER 1 : PURCHASE PROCESS Cyndi Ader CANCUN 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 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
  • 11. Here in Mexico, real estate closings are handled by Notaries, which are government appointed attorneys and they have the authority to handle the complete closing transaction. Before closing, the Notary will revise all documents to make sure everything is in order, as well as do the title search to make sure the property has clear title. Buyers may, however, contract an attorney to represent them as well, but this is not always necessary and is an added expense. The attorneys at the Notary office can assist in all the aspects of the closing. The buyer must consider market conditions at the time of buying. When sales are sluggish buying pre-construction can be more risky, since it is possible that some projects may not finish; at those times buying a re-sale property that is already a finished product may be safer. However, in other market conditions pre-construction can also have its advantages. Many developers receive the deposit and following payments directly and most do not use escrow services. In this case it is important to really do your due diligence and, better yet, contract an attorney to represent you for the purchase transaction, before giving any deposit monies. Your broker can also advise you of the reputation of the developer in question. OTHER ANSWERS
      • W hat is the difference in purchasing pre-construction vs. resale?
      • H ow do escrow accounts fit into these processes?
    Cyndi Ader CHAPTER 1 : PURCHASE PROCESS (cont) Listings Cyndi Ader CANCUN 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 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
  • 12. While the offer process itself is relatively similar to what a buyer could expect in the U.S. or Canada, the escrow and title processes are somewhat different. The offer process is effectively the same with the exception that most agencies use a dual-column bilingual format so that the contract is in Spanish and in English, with the Spanish side prevailing under Mexican law. A counter-offer process follows and is very similar to that of the U.S., with the exception of back-up offers and multiple offers. OTHER ANSWERS
      • W hat are the steps in the real estate purchasing process in Mexico?
    Michael Green CHAPTER 1 : PURCHASE PROCESS Typically, developments have a form purchase agreement. Ask to see the boilerplate agreement and look for the following items to be included: - Plans and specifications of your particular unit and the common areas - Construction calendar and penalty clause in case of non-compliance - Rules and regulations for the condominium and payment schedule If the sales team is promising specific amenities, these should be detailed in the contract. Then you will want to know where your payments are going. - If the developer is using these funds in order to build the project, what kind of security will he offer in order to insure the project will be completed?
      • W hat is the difference in purchasing pre-construction vs. resale?
    Listings Cyndi Ader CANCUN Michael Green PUERTO VALLARTA 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 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 Rebecca Loto COSTA MAYA Thomas Lloyd PLAYA DEL CARMEN Mitch Keenan YUCATAN
  • 13. OTHER ANSWERS Michael Green CHAPTER 1 : PURCHASE PROCESS (cont) - Is there an administrative trust in place? Is it possible to get a completion bond? - If the payments are directed to an escrow account, how will they be released? Verifiable levels of completion would protect you better than calendar dates. Finally, and perhaps most importantly, what do you know about the developer? - Have they completed other projects in the area? - Do they have experience building on the beach? - If they have had issues in previous buildings, what are they doing to improve yours? Keep in mind that while the developer is building the project, it is YOUR money that is making it all possible! You can make an offer, even on a new development and negotiate a contract that is fair to both you and the developer. Purchasing in a new development can be a dream come true if you use prudence and sound judgment. Enlist the help of an experienced, reliable realtor to help you review documents, contracts and act as your advocate. In the case of a resale property, once an offer has been agreed to by all parties, an earnest money deposit is placed in escrow with a reputable title company, such as Stewart Title. These companies will hold the escrow funds (which are 10% of the purchase price for the earnest money deposit and the subsequent 90% funds for the balance of the purchase) until the closing. They will then disburse these funds according to a mutually agreed upon letter of disbursement signed by both the buyer and the seller. The case of pre-construction properties is answered above.
      • H ow do escrow accounts fit into these processes?
    Listings Cyndi Ader CANCUN Michael Green PUERTO VALLARTA 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 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 Rebecca Loto COSTA MAYA Thomas Lloyd PLAYA DEL CARMEN Mitch Keenan YUCATAN
  • 14. There are a couple of advantage in buying pre-construction condominiums/apartments; the developer offers a lower price as an incentive for you to invest and you often have the option on the finishings, i.e. tile colour and type etc. However, you must ensure you have a contract which outlines payment schedules, the completion date, any penalties if the property is not finished when it was supposed to. If buying pre-construction make100% sure that the lot is private property and that it has a title. OTHER ANSWERS
      • W hat are the steps in the real estate purchasing process in Mexico?
    Rebecca Loto CHAPTER 1 : PURCHASE PROCESS Find a trustworthy and reputable real estate agent. When you are visiting the area you are interested in investing in, ask local people to see what their thoughts are on that agent. Remember to ask lots of different people as opinions may vary. Your agent should speak Spanish. Research prior to your visit to Mexico to give you a more comprehensive idea on the properties available, prices and legal processes. If you are interested in making an offer on property you will sign a contract with our realtor and leave a deposit (normally 10% of the property value) in an escrow account. Check all legal documents carefully before signing.
      • W hat is the difference in purchasing pre-construction vs. resale?
    Listings Cyndi Ader CANCUN 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 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
  • 15. OTHER ANSWERS Rebecca Loto CHAPTER 1 : PURCHASE PROCESS (cont)
      • H ow do escrow accounts fit into these processes?
    An escrow account is used by realtors when someone has made an offer on a property and pays a deposit (usually 10%, but it can vary). The money is kept safely in the account while the closing papers are drawn up. It shows a firm commitment on the part of the buyer. Listings Cyndi Ader CANCUN Rebecca Loto COSTA MAYA 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 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 Thomas Lloyd PLAYA DEL CARMEN Mitch Keenan YUCATAN
  • 16. For foreigners purchasing in the restricted zone, along the coasts and borders, transfer will be made into a “fideicomiso”, the Mexican bank trust. In the interior of the country transfer will be made directly into a fee simple deed. Permits, appraisals, certificates indicating there are no liens on the property and that taxes have been paid, are required with all documents presented to the notary public for incorporation into the deed of transfer, either in fee simple or in trust (fideicomiso). OTHER ANSWERS
      • W hat are the steps in the real estate purchasing process in Mexico?
    Linda Neil CHAPTER 1 : PURCHASE PROCESS In pre-construction, if a condominium project, title cannot transfer until the condominium regime is complete, usually after construction is completed. In a resale, title can generally be transferred upon payment in full either in cash or with a mortgage.
      • W hat is the difference in purchasing pre-construction vs. resale?
      • H ow do escrow accounts fit into these processes?
    Escrow accounts can serve as a safety factor for the buyer, who should issue specific instructions as to when and under what conditions the funds are to be released to the seller. Listings Cyndi Ader CANCUN 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 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
  • 17. 1. Identify the markets that appeal to you. 2. Visit those market areas. 3. Create a list of positives and negatives. 4. Narrow your focus. 5. Find an agent(s) within in your focus market(s). 6. Schedule to see properties. 7. Choose a property. 8. Negotiate with the seller. 9. Determine the vehicle you will use for holding title (bank trust or fee simple title). 10. Close. OTHER ANSWERS
      • W hat are the steps in the real estate purchasing process in Mexico?
    Mitchael Keenan CHAPTER 1 : PURCHASE PROCESS
      • H ow do escrow accounts fit into these processes?
    We use an Earnest Money Account. If a client prefers escrow and all parties agree, then the purchaser can pay the title company to set up an escrow account. They cost about $500.00 USD. Listings Cyndi Ader CANCUN Mitch Keenan YUCATAN 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 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
  • 18. 1)Find a realtor you can trust. 2) Learn the acquisition process so you know what to expect. 3) Search for and find the ideal property. 4) Make a written offer (preferably with a deposit.) 5) Once the offer is accepted, hire an attorney to proceed with writing a promise to purchase and sale contract, or promise of designation of trust beneficiary. At this time you should clarify details such as payment form, recorded values, capital gains tax and other tax payments. 6) Have your attorney set up a Trust to hold the title. 7) Close and take possession of your property. 8) Have all utility bills names changed to your name. OTHER ANSWERS
      • W hat are the steps in the real estate purchasing process in Mexico?
    Hector Moreno CHAPTER 1 : PURCHASE PROCESS One is a project and the other is a reality, each one has advantages and many details to review carefully.
      • W hat is the difference in purchasing pre-construction vs. resale?
      • H ow do escrow accounts fit into these processes?
    An escrow company is a licensed corporation authorized to hold funds in trust to assure the proper payment for the parties involved. Cyndi Ader CANCUN 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 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
  • 19. Once the interested party has settled on the property of his or her choice, the most common set of steps will be: 1. The offer with or without conditions or contingencies 2. A due-diligence inspection of legal documents associated with the property 3. The choice of a Notary Public to create the Trust (if necessary)and title documents 4. Closing wherein the property is legally conveyed to the buyer either in a fee simple title or via a Mexican Bank Trust OTHER ANSWERS
      • W hat are the steps in the real estate purchasing process in Mexico?
    Tim Sullivan CHAPTER 1 : PURCHASE PROCESS In a purchase of a pre-construction property or a virgin property there will exist certain warranties and guarantees provided by law from the developer. Most resale properties are sold "as is" without any mandated warranties.
      • W hat is the difference in purchasing pre-construction vs. resale?
      • H ow do escrow accounts fit into these processes?
    In my personal experience, escrow accounts have rarely been involved in real estate transactions. However, as the local market becomes more globalized, the use of escrow accounts has increased albeit slowly. Listings Cyndi Ader CANCUN 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 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
  • 20. After the Prominent Purchaser decides on the property he would like to acquire, such prominent purchaser will make an offer to purchase to the seller. In the event that such offer is accepted by said parties, a private purchase and sales agreement must be drafted by a real estate attorney; such agreement must contain terms, conditions and obligations assumed by the parties.   In order to formally convey the property in question, the private purchase and sales agreement must be formalized through a deed issued by a notary public. After executing such deed, the same will be recorded in the public registry. OTHER ANSWERS
      • W hat are the steps in the real estate purchasing process in Mexico?
    Ivan Castillo CHAPTER 1 : PURCHASE PROCESS Purchasing in pre-construction means that the property to be acquired is in the process of being built – therefore there is no finished product. In the other and, a re-sale is the conveyance of a property previously conveyed. Said property could be a house, condo, lot or commercial space.
      • W hat is the difference in purchasing pre-construction vs. resale?
      • H ow do escrow accounts fit into these processes?
    Escrow is used to hold funds, have them in custody and disburse the same in accordance with the previous instructions provided by Purchaser and Seller. This way both parties are fully protected. Stewart Title Riviera Maya advices that NO funds are given directly to any purchaser until the property has been legally checked and a purchase and sales agreement is drafted by a real estate attorney and executed by all parties. Listings Cyndi Ader CANCUN 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 P ROMISSORY & PURCHASE SALE CONTRACT Tim Sullivan IXTAPA Hector Moreno TULUM & AKUMAL Ivan Castillo Stewart Title, Riviera Maya Liliana Gonzalez MORELIA Linda Neil LA PAZ Michael Green PUERTO VALLARTA Rebecca Loto COSTA MAYA Thomas Lloyd PLAYA DEL CARMEN Mitch Keenan YUCATAN
  • 21. Make an agreement on the price. Develop a sales contract stating the parties, property, price, deadlines, etc. Make the down payment: usually 10% of the total cost. Carry out the title search Obtain a free liens certificate. Deliver the appropriate paperwork to the notary's office. Complete the paperwork to obtain the SRE (Secretary of Foreign Relations) permit. Reviewing title at the notary's office to make sure it is written correctly. Make an appointment to sign the deed. Complete the payment of the total amount. Sign the deed at the notary's office (buyer and seller). OTHER ANSWERS
      • W hat are the steps in the real estate purchasing process in Mexico?
    Liliana Gonzalez CHAPTER 1 : PURCHASE PROCESS Listings Cyndi Ader CANCUN 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 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
  • 22. To get the full version visit: : http://www.topmexicorealestate.com/real-estate-books/ Listings

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