I have been working in the Puerto Vallarta real estate market for several years and from my experience the first thing is to ask the developer’s representative to accompany you on a “walkthrough” inspection of your new home in Puerto Vallarta.  During this inspection you want to make a written “punch list” of any damaged or missing items and note any repairs that are necessary.

You may want to start by reviewing all doors and windows. They should be well-fitted, easy to open, close and lock. The floor tile should be evenly laid with no high spots, cracks or scratches.  In the bathrooms make sure there are no chips in the bathtub, toilets, sinks and flooring. See that the cabinets are not loose, lights and fans work, and the caulking is applied correctly. Check for leaks. Open and close all the kitchen cabinets and make sure there are enough electrical outlets and they are working.  Counter tops, sinks, and appliances should not have any damage during the installation. Test all the appliances for proper functioning including the hood fan and light as well as the kitchen lights and switches. Check the paint job throughout and note any scratches, splotches or drops.  Then you want to review the cooling systems (air conditioning and ceiling fans).  Make sure they are all in proper working order and get the remote control units if these are included.  Next, locate your electrical breaker box and confirm there are enough circuits available and they are labeled.  Then check the hot water heater for proper function.  Turn on the hot water and check the temperature and the pressure.  Ask if there are main shut off valves for gas and water and note these locations.

Finally, review the common areas for note items still to be completed. Check the status of the pool is it complete, where is the machinery, is it operational. Elevators and garage doors need the same reviewing. In the garden areas note any lacking green areas or construction materials that are still left on grounds. Have the developer’s representative sign and date the punch list and keep a copy for your records. The items listed “needing attention”, are delivered to the developer and a timeline should be agreed upon so that he can repair such items.

If you miss something on the punch list, or there are unseen problems arise in your unit, here is some good news!  In the Puerto Vallart real estate market, the Jalisco state law provides a six month guarantee of workmanship and function.  This also covers hidden defects.  As we discussed above, it is best if you have the majority of defects listed on a written punch list.  This can save a lot of time and effort on your part.  However, when items do crop up, most developers will professionally attend your requests.  They know that your goodwill and happiness are the keys to success in future projects.

Do you have a question about Real Estate in Puerto Vallarta?  Just ask!

The Mexico real estate industry is faced with many twists and turns that are not normally experienced in property transfers within our own home countriesFor example, it is common in some operations in the Yucatan real estate market the need to rectify property measurements If this occurs, this means most likely, that there is going to be a delay in the Mexico real estate purchasing process. Essentially, the escrituras on file with the Catastro and the seller's copy of escrituras have a (usually small, often infinitesimal) difference in the meets and bounds measurements stated in the documentation.

If the property is to be held in a Fideicomiso, the bank requires that the escrituras of the seller and the escrituras filed with the Catastro be absolutely the same. If they are not, the Catastro will need to send an engineer to the Mexico property to re-measure the property and record it properly. After the engineer re-measures and issues the new measurements, the owners of all the properties that bound the re-measured property must literally “sign off” on the new measurements. This can be a long and arduous process, especially if the property has numerous neighbors adjoining it.

Mitch Keenan has been a Licensed Broker in the United States since the 1980s. He holds a GRI and a CRS from NAR (National Association of Realtors). With over ten years of living and working in the Yucatan real estate industry, Mitch brings American business ethics and Mexico business experience together to give buyers unparalleled service. www.TOPmexicorealestate.com 512-879-6546

Last week I received several questions regarding the availability or the types of windows that are available here in Mexico for residential homes Ten years ago and more, the options for glass types were quite reduced Today, the variety and combinations of glass here in Mexico may reach near 100

The glass that is now available in Mexico, in its combinations, is used for energy savings, protection, design to name a few For example some people may choose a dense thickness of glass that will help reduce the noise if living near highly transited roads or near restaurant and bars Low E glass has to do with the technology used on the glass to decrease the amout of sun that enters into a room, or decreases the amount of heat that escapes a room Tempered glass helps increase the resistence from impact, flying objects UV blocking glass does exactly as the name says, reducing upto 99% of these UV raysGlass staying after breakage helps reduce little pieces of glass from scattering if the glass does break on impact Laminated glass is basically 2 sheets of glass with a thin plastic covering sandwiched between these two panes The strength increases exponentially giving a window that can resist several blows of objects before shattering

The window combination that the user chooses are molded together in a 5 step process First the glass is washed thoroughly The next step involves bending the spacer to mold around the glassThird step is filling the spacer with desicant to absorb the humidity within the space vacuum of the two windows In step four, Butil is applied as a vapor barrier and as a sealant Fifth step involves joining the two panes of glass A secondary sealant is then applied to give further structural properties for the final process

Laminated glass features two layers of glass with a special plastic sheet or film in the middle. When impacted, the tiny pieces of shattered glass adhere to the inner layer, eliminating the chance of flying glass and, most important for coastal areas, keeping the opening intact.

Of course, the main deterrent of having or selecting a wide variety of windows and their combinations are the costs We will talk about this in a later post

Bea Lozano

www.TOPmexicorealestate.com

(512)879-6546

In my years of working in Mexico, I have dealt and representated various real estate investors who have made returns of 35% – 50% on their Mexico ventures and several of these within 12 month time periods! The Mexico Real Estate industry is a new developing market with amazing potential. The segments leading the area for ROI include the preconstruction residential investments which can be quite a lucrative investment option for the real estate buyer…. if you come prepared.

Although not as commonly heard, there also exist stories of investors that have had to administer developer’s non-detailed contracts, late deliveries and other complications that have eaten away the buyer’s profits and returns. The buyer would be forced to learn quickly how to find additional assistance, and find solutions on his ownBut from such experiences, much knowledge was obtained which is then able to be applied to other future Mexican opportunities.

I have listed a few items below as a simple guide for your review during your Mexico Preconstruction Condo investment process.

Mexico Preconstruction Condo DOS…

1 Try to negotiate a payment plan based on construction progress and milestones. In Mexico, most contracts outline payment plans based on dates instead of progress.

2 Surround yourself with a good Mexico real estate investment team. Although it is not required by Mexican law to be trained, educated or certified to sell real estate in Mexico, you should be able to find top notch representation in various regions if you invest a little time into the research. Find professional agents with credentials, members of the AMPI organization, and agents with recommendations ( www.playacarmenproperty.com) Legal counsel is also a very important position to recruit for your Mexico Real Estate team. Your real estate agent should be able to give you a list of 2 or 3 top options of such lawyers.

3 Ensure that your reservation money is refundable. You the investor, along with your Mexican legal counsel, need a few days to study and analyze the proposed promissory contract. Most Mexico developers offer from 7 to 15 days to reserve a unit and will also offer the reservation check to be 100% refundable. Other developers, especially in a sellers market, encourage quick decisions and prefer to work with investors who have already qualified the region and project during the Mexico preconstruction condo sales phaseSuch developers may not allow for refunds.

4 Keep in close contact with the developer. Once you have signed the hard contract, many developers may have monthly progress reports or monthly mailers to keep in touch with their investors. Make sure you get on these distribution lists and keep yourself updated regularly.

5 If you have any custom changes or upgraded choices on materials for your condo, define and communicate these changes as soon as possible to your developer. This will give your developer ample time to include such improvements into the master plan and to incorporate into his overall construction schedule.

Mexico Preconstruction Condo DONT’S…

1 Don’t Expect to have your trusted lawyer from your home country to be able to elaborate, review, and to give you the best counsel regarding Mexico Real Estate. Your home country lawyer can give you pointers and recommendations, but it is always highly recommended that you retain the services of local, regional, or a licensed Mexican representative. The laws in Mexico are quite different than the laws of Canada, USA and UK and even more so regarding Real Estate law. A legal representative from the area has a better chance to have first hand knowledge and know the history of all the regional players which can be very beneficial when dealing with the parties of the contract. Along with this fact, many of the activities include tasks required from the region which include for example, the collection of documents from the seller/developers offices, the retrieval of government documentation, and the coordination of signatures with the local notary offices.

2 Don’t expect to find a large quantity of Mexico Preconstruction condo options that are pre-qualified for financing. The mortgage companies require various property and developer documentations. The most essential being that of the Mexico CONDO REGIME. (http://www.topmexicorealestate.com/faq.php). These documents cannot be produced by the developer until the project is near 90% or 95% into construction. If you are able to negotiate payment plans and time schedules based on the developer obtaining such documentation, then you may have a solution to finance your investment using the same Mexican property.

3 Don’t forget to define commonly overlooked issues which can be of high conveniences once you are living in the condo such as the Parking situation and Hurricane Shutters. Define if your condo will be delivered with Air Conditioning units, with closet doors, with cabinets, with light fixtures, or with ceiling fans to name a few such overlooked items.

4 Don’t expect to have your condo delivered turn-key ready or delivered exactly on the date as written on the time schedule. Stay in close contact with your developer to ensure that you are kept updated on the progress and advised of any delays of delivery. Even when the delivery date is confirmed, it may take 3 or 7 additional days to set up the utilities. (Gas, Electric, Water, TV)

5 Don’t forget to ensure if your can reassign the property. This is most important if your investment strategy includes flipping. Most developers will protect internal competition, meaning, they will not allow investors to sell or put their condo units on the market for sale until the developer has sold out his original condo building supply 100%.

The above is a brief over view of the Mexico Preconstruction condo dos and don’ts. There are several items that were not discussed in this short article and we encourage you to learn more and contact us for any further question you may have.

Thomas Lloyd www.TOPmexicorealestate.com

What can you do if you forget to check that the Air Conditioning units function in your brand new Mexico Preconstruction condo and you have already signed the closing documentation

When you take possession of a brand new condo unit here in Mexico, you may find some of the procedures a little different than what accustomed from your home country.

Not all is bad, some items and procedures which you might expect, do not exist, and some articles might be supplied to your pleasant surprise. If you approach this exciting task with a little time and preparation your latest Mexico real estate acquisition process will continue to be a lifelong enjoyable experience. The entire process revolves around a Mexico Condo punch list, basically a things to do list of your inspection In the wikepedia definition, if you are unfamiliar with preconstruction acquisitions you will find a thorough explanation http://en.wikipedia.org/wiki/Punch_list I will touch upon the basic definition.

WHAT IS A WALK THROUGH

Before you take physical possession of your Mexico Condo, the developer should allow for an inspection of the unit before “handing over the keys”. This is also known as the Condo Pre Delivery Inspection. During this Mexico Condo Walk Through, it is important to note down all of the damages, needed repairs, missing items, and jot this down on paper. Administer this paper as an official document listing out the dates and addresses. Don`t forget to have the developers representative sign and date the document and keep a copy for your records as well for the records of the developer. The items listed “needing attention”, are delivered to the developer so that he has a time period to repair such items.

WHAT SHOULD I INSPECT DURING THE WALK THROUGH

Below is a simple Mexico Condo Punch List that you may find helpful. There are basically 3 areas that can be reviewed, the operating systems, the interior, and the exterior areas of the Mexico Condo Inspection.

OPERATING SYSTEMS

You should review the cooling system (there are only a very few select regions in Mexico where they acuatlly use HEATING sytems). Mini split air conditioning units are becoming widely used and are operated by remote control. Ensure these remotes are available and functioning. Gas water heaters are also the common system for the water systems. Ask for the operating manual and see the procedure of starting up the furnace. Double check the tubing and where the gas tanks are stationed within the building and make a note of the tubing. (Gas tubes in Mexico are to be painted a bright yellow throughout the entire building).

The ventilation systems include the ceiling fans. Ensure operating order. Some restrooms have a ventilation system, not common in Mexico. In the kitchen review that the oven hood with extracting fan is operational.

Electrical sytem activities would include identifying the location of the main panel and the Water system includes locating the main H20 shut off valve for the property. Go to all sinks and toilets to verify there are no leaks

INTERIOR AREA

You may want to start by reviewing all doors and windows. Doors should be well-fitted and handles operating smoothly. Sliding glass doors should slide open and shut securely. Windows again should open and funcation securely. Mosquito screens are many times not available, but check to see that they are present if part of the package. In the bathroom review for chips in the bathtub, toilets, sinks and flooring. See that the cabinets are not loose, lights work, caulking is applied correctly. Check for leakage. The kitchen area should include an inspection of the correct amount of outlets. Cabinet doors need reviewing. Counter tops, sinks, and appliances should not have any damages during the installation. Test the hood lighting as well as the kitchen lights and switches.

In the living areas review that paint stains are not present on the walls or floors. Handrails straight and not loose, and all swithches aligned up correctly.

* please note, some developers will not include delivery of ceiling fans, light fixtures, closet cabinets including these as items that each individual purchases and installs on their own account due to many personal preferences and tastes.

EXTERIOR AREA

Review the common areas for commenting and filing of your observations. Find out the status of the pool, is it complete, where is the machinery, is it operational. Elevators and garage doors need the same reviewing. In the garden areas note any lacking green areas or construction materials that are still left on grounds. Get a timeline on completions.

* please note, it is very common to receive physical possession of a unit and the common areas are still in construction phases. Most developers will concentrate their efforts on completing the units for all investors, and then concentrate their attention on the common area projects once they have satisfied deliveries.

WHAT IF I FORGET AN ISSUE TO CHECK ON THE PUNCHLIST

This is the question that I hear quite often from my clients. It is reassuring to know that here in Mexico there are laws that do protect the new home buyers and one such regulation allows for a 12 month gurantee of quality craftmanship and function. This covers hidden defects as well. Of course, such a situation is easier and better administered if from the beginning the proper documentation and filing occurs to avoid any head aches and time consumption processes. But these may occur and most developers will professionally attend your requests. Another question that is quite common is

What happens if the closing date is programed before the repairs have been completed The Mexico developer normally comits to the completion of repairs within a 30 day time period, and from my experience, they normally take less than 7 days unless it is a major item needing repairing.

* This article is intended to provide general information. It is not distributed for reasons involving legal, accounting, tax or other professional advice or services. If you have specific questions, please contact me.

Thomas Lloyd www.TOPmexicorealestate.com

Thomas Lloyd www.TOPmexicorealestate.com

Thomas Lloyd www.TOPmexicorealestate.com

As Mexico oceanfront properties become discovered by the world, the demand is

bringing record numbers of investors and buyers to this market

Some are coming with their knowledge and their monies which they reaped from their wise investments in other parts of the world such as the Las Vegas and
Florida real estate markets Now, the savy real estate investors, with the slow down and correction of the American markets, are broadening their sites into new developing and rising markets In this new century with the more open global market community, international investing does not seem that adventurous as the years before to many of the local real estate experts throughout US, Canada and UK Mexico waterfront real estate is a logical top option.

Here in Mexico, the markets are not as mature as those from Canada, UK, nor of the USA.

The same regulations do not apply here in Mexico as those from our home countries.

Some people see this as a half empty glass, others, as a half full glass.

Less regulation, more risk, but much larger potential for greater returns!

*Do your homework

*Surround yourself with qualified people

*Manage the risk and reap the rewards

Over the past 10 years, the Mexico preconstruction condo process has changed as more developers have appeared on the oceanfronts In the early years, various local developers were the

options available to the early international investor pioneers here in Mexico Soon, regional

and national players started investing into raw plots of land seeing the signs that large

numbers of international end users were flocking to the Mexico Beaches Today, we are in

phase one of large multi national developers placing their footprint signatures along specific

neighborhoods throughout Mexico You the investor, are in a phase of investment here in Mexico

very unique, in that you can find a variety of Mexico Preconstruction condo options.

TRADITIONAL PROCESS TO RESERVE A MEXICO PRECONSTRUCTION CONDO

1) $10,000 usd to reserve a specific unit

2) 30% – 50% of the total condo unit value is paid to the developer with signatures of the promissory contracts

3) monthly payments to the developer are realized by the buyer during the construction period

4) upto 90% of the unit is paid with the physical delivery of the Mexico condo unit

5) the remaining 10% is paid with the legal delivery of the condo

As outlined above, soon, regional and national players started to give more purchasing options The price might increase a few percentage points as the larger developers had greater cash flows, but this would be reflected back into the final price of the unit such payment schedules might include:

NEW PAYMENT PROCESS

1) $10,000 – $20,000 usd to reserve

2) 30% – 40% of the total condo unit value paid to the developer with signatures of the promissory contracts

3) payments made on construction milestones (first floor complete 20% payment, windows doors inserted, 15% ej.)

4) upto 90% of the unit is paid with the physical delivery of the Mexico Condo unit

5) the remaining 10% is paid with the legal delivery of the condo

Finally, with the introducton of several American and European mega developers, their large deep pockets have opened

up the market to more accesible payment schedules But as we know, risk controls cost money, and these are transferred

into the price per square meter.

MULTI NATIONAL DEVELOPER PAYMENT PROCESS

1) $15,000 – $20,000 usd to reserve

2) 30% of the totla condo unit value paid to the developer, and sometimes to escrow

3) no payment needed during the construction period

4) the remaining 70% is paid with the legal and physical delivery of the Mexico preconstruction condo.

5) some developers, will then offer in – house financing to kick in at this point offering from

5 years upto 20 year financing

The above payment schedules are all guidelines and we can find a variety of payment plan options, and a variety of developers

throughout Mexico Some have conditions set in stone, others are flexible in negotiation