Real-estate

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The most important thing is to know the laws that pertain to land purchases.If you know the rules and laws you should not get screwed by anyone. If you don't know the language find an honest trusted friend that does so you know what is being said and what is being written. The worst thing you can hear from anyone is "oh we don't worry about that here in BCS" ... that's when you really need to worry!!
Manage
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get the catastro number on the property and do your own land title search and see what and who currently owns it. While you are at La Paz city hall go over to the tax office and see if the taxes are paid up on.
Manage
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Your survey needs to be done buy one of the State certified surveyors.
Manage
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just a few things that need to be done when purchasing property. My advise is hire Jose Gaytan and he will take good care of you. .... 1. BUYER - Impuesto Sobre Bienes Inmuebles Acquisition Tax (receipt) Calculated at the rate of 2% of the value declared for the property. Purchasers of real estate and purchasers of trust rights must pay this tax.

2. Avaluo Appraisal The appraisal is made to determine value of the property, including the land and the improvements.

3. SELLER - Impuesto Sobre la Renta Capital Gains Tax There are two ways this tax is calculated. The seller is obligated to pay the LOWER of the two: 1. 20% of the total selling amount, (no deductions) 2. 40% of the difference between selling price and value at seller's acquisition. (authorized deductions apply) Proceeds from the sale of real estate in Mexico are considered to be Mexican source of income.

4. Certificado de Libertad de Gravamen Certificate of No-Liens (No-Encumbrance) This document is issued by the Public Registry, it certifies the current status of the property. Careful! This is not a replacement for a Title Search!

5. Certificado de No-Predial Certificate of Property Tax payment (receipt) This document serves as proof that property taxes have been paid.

6. Escritura Publica Public Instrument (Deed) This document can only be issued by a Mexican Notary Public. It attests, in this case, to the transfer of property. This documents is perfected upon recording at the Property Tax Office and the Public Registry of Property Office.

7. Sello de Catastro Seal of the Property Tax Office. The Property Tax Office will place a seal on the Escritura to reflect the inscription of the document.

8. Sello de Registro Seal of Registry Placed by the Public Registry, showing recording data.

9. Carta de Instruccion Letter of Instruction When buying from a foreigner (non-Mexican citizen), a Letter of Instructions must be issued and signed by the Seller. If issued in Mexican Territory, it must be signed before Notary Public. If issued in the United States, it must be accompanied by an apostille. If issued in Canda, it must be ratified by the Mexican Consulate.

10. Permiso de la Secretaria de Relaciones Exteriores. Permit from the Ministry of Foreign Affairs of Mexico. In order to establish a Mexican Bank Trust (Fideicomiso), a permit must be issued by this Ministry. Your permit from the Mexican foreign office will cost around US$150

11. SELLER - Poder Power of Attorney This document will give the person you designate, the power to legally represent you in a specific transaction.

12. Aviso Preventivo Preventive Notification This document can only be issued by a Notary Public. It serves as notification that a transaction is under way. It shelters the title of the property for a period of 60 days.

13. Promesa de Fideicomiso Promise of Fideicomiso This document is usually entered as the agreement to buy. Do not confuse it with the actual title to the property. This is a temporary agreement. A registered title (Fideicomiso) must be obtained as soon as possible.

14. Reporte Preliminar de Titulo Preliminary Title Report Present the condition of the title after a title search was performed

15. Notorized Employment Termination Document Showing that the previous owners have terminated services of labors, domestic helpers and completed all labor requirements as required by Mexican Law that may have employed to date.

The real estate industry plans to lobby for a renewed discussion in Congress over the elimination of the bank trust foreigners must use to purchase property.



The president of the Real Estate Confederation of Latin America said removing the requirement for foreigners to buy real estate with a trust, called a fideicomiso, would detonate sales and have an impact on the entire sector.

Antonio Hánna estimated it would drive up demand by 30% in the five years following the change.

Only Mexicans by birth or naturalization, or Mexican companies, can directly own real estate within 50 kilometers of the ocean or 100 kilometers of international borders. Foreigners who wish to hold land within those areas, known as the restricted zone, must do so with a bank trust.

The buyer, who must pay an annual fee to the bank, has the right to use the property but the bank holds the title.

Sales of vacation homes and apartments totaled 1,725 last year. Remove the bank trust requirement and the number would soar to 2,423 after five years, said the confederation.