When you hire a Mexico agent to work with in your Mexico real estate search and purchasing process, you are hiring a professional to represent you and carry out certain duties for you.  You should have clear expectations of what they can and should do for you, and what they won’t.

The following are items which you should expect from your agent:

• Professionalism – Your agent should be qualified to work as a real estate agent.  This is not required in most of Mexico, but training, certificates and even degrees are available.  There is also a professional association (AMPI.) Expecting these is certainly not too much to ask.

• Honesty – You can and should expect your agent to be forthcoming with you about the knowledge they have of properties, opinions and their own experience and credentials.  It is better to work with an agent who honestly tells you, “I’m not sure about that, but I can find out,” than one who knowingly provides misleading information.

• Knowledge of the Market – Your agent should know the area, what kind of Mexico homes for sale are available, typical prices, etc. and advise you on these items.

• Commitment to Your Needs – Since you are hiring an agent to represent your needs, they should use their knowledge to focus on your needs and preferences during the search process and represent your best interest during the negotiation process.

• Thorough Property Search – Your buyer’s agent should search all suitable properties and present you with the best of these options.  They should not be limited by a commitment to selling a certain property or in a certain complex, etc.  If the properties they show you are not the right ones for you, they should continue to search for your ideal property free of conflicting obligations.

• Good Communication – Since many of the preliminary steps in searching will be long-distance, Mexico agents should be efficient and effective in communicating quickly and getting you the information you need.  Quick replies by e-mail or by phone can be expected – even if they don’t have the information yet, simply to let you know what stage the process is at.  If there are any changes relevant to your search or purchasing process, you should find out quickly.

• Commitment to Service – In addition to good communication, the right agent will help arrange viewings, etc. in a way that will make things a little easier for you coming from a distance.  For example, if you head down on a little vacation or just to view properties, those dedicated to service will pick you up at your hotel to take you on your property tours.

• Knowledge of the Purchasing Process – Your agent, or the broker of the office, should have a thorough knowledge of the purchasing and closing process, and guide you through this, safely, minimizing unnecessary risks.

• Suggestions for the Services of other Professionals – Your agent’s job is to know the area, help you find a good, suitable property and to guide you through the purchasing process.  Certain tasks, however, should be and even must be carried out by other qualified professionals.  What you can expect of your agent is that they advise you when you need the services of others, and suggest experienced professionals.

The following are items which you shouldn’t expect of your agent:

• Know Everything – As mentioned above, it’s actually better that they acknowledge it when they don’t know.  What you can expect is that they will do their best to find out, or point you to someone who does.

• To Advise You on Your Budget – Again, a bank can advise on the possibility of financing, etc., but it will be your job to determine what is realistically within your budget, and advise your agent.  You can expect them to find you the most suitable properties within this budget.  It can also be helpful to you that they make suggestions if there is a property which is slightly above the budget you told them and has exceptional value, or if there is an excellent deal for less.  Your agent should also advise you on probable closing costs so you can plan for this.

• To Do the Work of Other Professionals – If an agent or broker has experience and qualifications to guide buyers through a certain part of the process that is normally not within their tasks (i.e. your agent is also a certified lawyer,) this can be helpful to you; however, if they don’t, it’s better for you that they recommend someone who does.

While it is not good to expect too much, it is also not good to expect too little.  If you don’t feel your agent is meeting your expectations, talk with them; remember your gut feeling is an important factor in being sure that you are working with the right people.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely

The Mexico real estate e book

We put this book together to help people new to the process of buying real estate in Mexico understand the steps and documentation.  What is interesting about this book is the fact that it is a collaboration and collection of opinions and tips from people with many years of experience in supervising property transactions in Mexico.  Below in the video,  you can hear the comments from a new Playa del Carmen real estate owner discussing his experience using the TOP Mexico real estate guide.

CLICK HERE TO GET A FREE COPY INSTANTLY

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

An Agreement is defined by Mexican Legislation and the Mexico law as a voluntary pact to create, transfer, modify and/or extinguish rights or obligations; furthermore The Federal Mexican Civil Code and legal doctrine establishes that an agreement is binding when the following elements are met:

Existence Items.- These are the most primitive and essential elements which any legal Mexico real estate contract or agreement must be provided with: a) Consensus.- The express or tacit will of  the parties to execute an agreement; b) Object.- The agreement’s goal must be determined or determinable from a physical and legal point of view (i.e. transmission of rights and obligations, to grant, to refrain from doing, to do).

Validation Elements.- These items must be considered in order for the Agreement or Contract not to be affected by partial or total nullification: a) Capability.- Attribution that an individual or entity has, which allows him/it to be responsible from the legal acts performed (exercise capability and inherent capability). I.E. A child has inherent capability but no exercise capability, ergo, is not allowed to sign and/or execute any contract or agreement. B) Form.- The shape of the contract, it’s wording, syntaxis and semantics. c) Lack of vice.- The contract or agreement must not be subject to bad faith, violence, duress or injury. d) Legality.- The contract or agreement must be executed accordingly to the enforceable Mexico laws and will never be performed against public order or good customs.

Existence items must be present in order for the agreement to produce any legal effect whatsoever, and validation elements must be closely observed, otherwise a party could have a legal recourse to challenge the efficiency of the contract through court.

Juancarlos Pelaez has been helping non-Mexicans with their real estate contracts and activities for over 10 years in the Yucatan Peninsula region. A graduate from the prestigious Mexican University of Monterrey Technologico and a Masters Degree from Madrid Spain, JuanCarlos has ample knowledge in the regional laws and obstacles that most Americans and Canadians experience. You can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

In a couple of posts before, we have discussed several of the steps during a normal process of buying real estate in Mexico.  Starting with interviewing and selecting a Mexico realtor that can best represent you during a real estate transaction and to help you put together a list of qualifying properties.  During your conversations with your realtor, you should share with them all of your dreams, your likes, your lifestyle, budget, and the type of property amongst other items so that he can get to work and help find you good options.  Below are some good steps that you can take to put together a good list of options.

First it is important to understand that finding Mexico real estate options have various more steps involved than what we are accustomed or what we would expect from the normal procedures from our home countries.  You need to realize that some properties

Lack title on the property – There exist some properties in Mexico which do not have the title.  Although there are steps that you as a buyer can realize to manage such a situation and obtain a title at a later date, the sooner you understand the status of a property, the sooner you can decide whether to qualify or disqualify such property from your overall list.

Poor History of Performance from seller or history of quality issues in building. – A building might have been constructed with various problems in the pipes, or the floors, or wiring issues.

Deteriorating neighborhood.  -  Some neighborhoods might have seen their glory days years before and the future demand might be on a different part of the city or community.  It is good to hear the opinions of people who live and work in the area.

So with these pointers…

Step one,
put your realtor to work, Have him send you properties that fulfill your criteria.  Review the options, put them in an order of best to worst and giving any feedback with your realtor of how you rated the properties.

Step two,
search the internet yourself if you have time.  When you find a property that looks interesting, SHARE THIS INFORMATION WITH YOUR REALTOR.  Put your realtor to work and allow him to research, investigate and find the status of the property and if any of the above concerns will continue to qualify or disqualify the property as a good option.

Step three,
allow your partner or your family members to participate with you.  If they will be sharing and enjoying your new Mexican home, it is important to hear their feedback in the properties as well.  They might even bring up questions that might have otherwise been overlooked

In order to help you have an efficient process of buying a property in Mexico, putting together an overall list of property options is recommended.  Having a well experienced realtor from the area is an important key to organizing this agenda along with your selections that are added from your surfing the internet.  Finally getting your partners opinion will add more valuable input in the decision making process and will make the overall purchase process …. More exciting and fun.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Every transfer of Mexico real estate property MUST, by law, be made before a Mexican notary public.

The Mexican notary public is required to have a degree in law.  He must have a minimum of five years of legal practice, pass a rigorous examination and then be appointed by the governor of the state in which he/she resides.   The notary is legally responsible for the review of the prior deed and the tax and lien certificates.  The notary must draft the new deed, calculate the Mexico property taxes due and pay them.  Also very important, the notary is accountable for his/her actions through the state and national notary associations.

It is commonly believed that an attorney, in addition to the notary public, is required when buying property in Mexico.   This is not necessarily the case.  In fact it may make more sense to seek out a CLOSING AGENT to handle the many details of the transfer, such as ordering and reviewing the title investigation; obtaining the certificates and trust permits, interfacing with the buyer and seller, answering their questions and concerns in their native language, explaining the nuances of the transfer process; overseeing the payment of funds for these services and expenses; reviewing the deed to be sure names and addresses are correct; being sure it is registered in the public registry of property; making sure it is delivered to the buyer; providing tax receipts to the seller………….and more!

When these matters are left with the Notary Public to handle, they may not all get done, or get done slowly due to the work load of most Notaries.   When these matters are handed to another attorney to perform, they may be sandwiched in between criminal complaints, court appearances and other more remunerative activities.

A good Closing Agent can be an attorney with expertise in title transfers, or it can be a company with experienced closing officers and attorneys on its staff for consultations in the event there are title issues.   More and more there are closing agents throughout Mexico.   They are specialists in titles and transfers.

The role of the Mexico closing agent

An experienced Closing Agent is a key person in the real estate purchasing process. Hiring a good Closing Agent who understands the ins and outs of the Mexican legal system and the requirements of the law as it relates to foreign investment will make the real estate transaction go much smoother.

The closing agent should be involved in drawing up a promise contract and reviewing all documents including title, certificate of no encumbrances, and  permits. A closing agent can also order a complete title search before the transaction reaches the notary public, which will save the buyer valuable time and money should there be a problem with the title.

The prudent buyer will always insist upon using a neutral third party closing agent to protect his or her interests.

Professional Closing Agents will have bi-lingual and experienced closing officers on staff to review the legalities of the transaction and to ensure that all the documents received are in order. Prudent buyers also enlist the help of the Closing Agent, who can oversee the permit process, review the draft of the deed being used in the transfer of title and order the title investigation, identifying any problems before the title has been transferred and money exchanged.

Finding a Trustworthy Closing agent

Clients should never hesitate to ask for details of the professional experience and references.  This is even more important when the real estate agent in the transaction is representing BOTH buyer and seller.  This is dual agency which is still common in Mexico.   In this case the buyer should definitely seek out his/her closing agent.

Questions to Ask a CLOSING AGENT: What exact services will you provide? What areas of law or real estate are your specialties? Can you provide an estimate of taxes and closing cost expenses? Will you order or conduct a title search? Can you provide at least three references?   Do you have experience with transfers to foreigners, Mexican bank trusts and foreign investment? How long have you been offering Closing Services to the public? How do you handle the funds you receive for closing expenses? Do you prepare specific instructions for the disbursement of funds?

Closing Agents do not have to be specifically licensed in Mexico to be able to supervise the transfer process of Mexican property. It is important to be cautious and do the same homework as when researching a real estate agent. Ask for credentials and references. The more experienced the staff and in-house counsel the company has in handling foreign investment transactions, the more protection and safety the buyer should have in a Mexican property purchase.

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

No way Jose!  No matter if you are buying a Puerto Vallarta beachfront condo, a home in Mexico, or whatever type of property.  Don’t leave money with the seller.  We have an old saying in our Puerto Vallarta real estate office, it is:  “Don’t leave your brains at the border!” Now Joe, if you were going to buy a home in the steel city, would you give the owner cash before closing?  Of course you wouldn’t.  (Or at least I hope you wouldn’t.)

In the event your Mexico real estate transaction does not close, it would be difficult, expensive and time consuming to recover your deposit.  For that reason, the standard practice here is to draft a formal contract of sale, which both buyer and seller will sign.  This contract should state the agreed price and terms of the sale and stipulate that any deposits shall be made to a neutral third party escrow account established specifically for the transaction.  There should also be provisions to return your deposit if the transaction does not close, as well as agreed upon penalties in the event one of the parties fails to comply with the terms of the contract.  There are several established financial institutions that are able to handle escrow accounts here, First American Title, Stewart Title and Monex are some of the most common.  Typically the buyer is responsible for the cost of the escrow (approximately $500 USD per transaction) but this is a small price to pay for the peace of mind that your money is in a safe place.  These fiduciary institutions have the legal responsibility to guard your deposit and not release it unless both you and the seller agree in writing.  In the event of a dispute, a judge would rule on final disbursement.

For new Puerto Vallarta beachfront condos in pre-construction phases, it is common to give the developer a deposit with the sales contract and make progress payments as the building is being constructed.  For this reason, you want to make sure that the necessary plans and permits are in place and the developer has a sound business plan and proven track record.  You should also ask for a completion bond in order to guarantee your deposit, or insist that your deposits remain in an escrow account, only to be released upon certain pre-established stages of completion. Please note that Spanish is the binding language in the sales contract,  (, (with English translation often provided as a courtesy) so I strongly encourage you to enlist the expertise of a local TOP Mexico realtor.  Joe, I hope you can see that the days of unprotected real estate investments in Puerto Vallarta are long gone, so “Don’t leave your brains at the border!”

Do you have a question about the Puerto Vallarta Real Estate market? Just ask!
Michael Green moved to Puerto Vallarta to take advantage of the unsurpassed lifestyle PV offers. Today, with over 12 years of experience, Mr. Green is one of the most recognized brokers in Vallarta. TOP Mexico Real Estate “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

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!

There are profound differences between a Notary public in the US and the Notario Publico in Mexico.  In the US, the public Notary might be a bank clerk, secretary at the office, or practice any other occupation.  In Mexico real estate, the Notario Publico must have a law degree, verifiable experience, pass a rigorous exam and is appointed for a lifetime term by the governor of the state.  Typically there is a Notario Publico for approximately every 30,000 in population. 

In Mexico, all legal documents, such as deeds, wills, powers of attorney, constitution of corporations, establishment of trusts and other legal transactions must be made before a notary public in order to be valid. If the document is not notarized by a Mexican notary public it is not legal! You should think of the Notario Publico here along the same lines as a Judge in the United States.  As part of the closing process, the Notario Publico will verify the following official documents, which are required by law for any transfer: A no-lien certificate from the public property registry, based on a complete title search; A statement from the treasury or municipality regarding property assessments, water bills and other pertinent taxes that might be due; An appraisal of the property for tax purposes.  The Notario Publico is also authorized to calculate and collect any Mexico Capital Gains taxes generated by the sale.  The Notario Publico also is in charge of registering your new deed with the public registry, and issuing a preventative notice of the sale with the Registry.  It is important to remember that the Notario Publico is an independent third party to your transaction.  He will not be able to advise you on details in your contract such as: price, location, financing, and terms of sale.  For that reason, I hope you have already sought the advice and counsel of a TOP Mexico Realtor, who can act as your advocate.  Many TOP Mexico Realtors have formed strategic alliances with a Notario Publico liaison.  These bilingual attorneys can assist with many of the above tasks at no additional expense to the buyer.  Best of all, they live or die by the concept of “Customer Service”, making them an invaluable part of your closing process! Thanks to Jessica Riedesser at Riedesser y Asociados for help with this answer.

Do you have a question about the Puerto Vallarta Real Estate market? Just ask!
Michael Green moved to Puerto Vallarta to take advantage of the unsurpassed lifestyle PV offers. Today, with over 12 years of experience, Mr. Green is one of the most recognized brokers in Vallarta. TOP Mexico Real Estate “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

For your Mexico Real Estate purchase, the promissory contract is a legal document of very high importance.  When negotiating this contract, it is important to make sure the contract includes all the elements that make it legal, that it includes conditions in your favour, and that it does not include conditions which can cause problems for you.  The following is a “checklist” compiled from advice given by a panel of Mexico real estate agents, experts in their industries.  The following advice can be applied when purchasing Mexico Homes, Mexico land, Mexico condos and similar properties.  The following experts contributed:

Ivan Castillo – Stewart Title

Jim Scherer – Puerto Vallarta Real Estate

Linda Neil – La Paz Real Estate

Mitch Keenan – Yucatan Real Estate

Information and details to be included in the Mexico Real Estate Contract

While some of the following items might seem obvious, it is necessary to check everything carefully.  As Mitch Keenan points out, “a Mexico real estate contract, like a USA contract has several elements that are required to make it a legal document.”  If any of these basics are missing, it could cause complications in the future and may not protect your interests as it should.

To be a legal document, the promissory contract should include:

*    A written contract – a contract for real property must be written

*    Names and signatures of both Parties, buyer and seller

*    Signatures of both parties, with and date and place

*    Competence of the parties

*    Offer and acceptance

*    Agreement to bind both parties

The following information is necessary to make sure that there are no surprises.  You might be under the impression that something is included in the property, and be surprised at the delivery not to find it.  If it is not spelled out in the contract, you are not protected.

*    Detailed information of the property to be conveyed

*    Accessories that the property will contain

*    Date of delivery of physical possession of the property (if applicable)

*    The date of transfer of title

Ivan Castillo points out that the last point – date of transfer of the title – is of key importance.  In some cases, buyers have paid the FULL property amount, are in physical possession of the property, but are still not in legal possession, i.e. the title has not been transferred.  Buyers put themselves at an unnecessarily high risk by allowing such a situation.

Conditions and procedures to protect your interests

Besides this basic, but key, information, there are important procedures that should be followed and conditions that should be included in order to protect your interests as a buyer. 

Mitch Keenan lists the following procedures:

*           Your contract should be written in English and Spanish

*           You should have it reviewed by your attorney

Jim Scherrer points out the following conditions:

*           Post-dating any initial deposit check to the date of expected purchase contract signing is the ideal route to take.

*           If the purchase contract price or terms and conditions can’t be agreed upon, the deposit check can be returned or stop payment ordered.

*           The promissory contract must clearly spell out all contingencies where and how the deposit money will be 100% refunded.

Linda Neil adds:

*           Avoid costly and time consuming litigation, insist upon including a binding arbitration clause in your contracts with the seller and other parties involved.

What to avoid!

Of course, you have to know what should not be in the contract.  Connected to his earlier point of specifying the title delivery date in the contract, Ivan Castillo points out the following DON’T:

*          Don’t agree to delivery of a high percentage of the purchase price without delivery of title

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Mexico Real Estate offers many great opportunities.  However, because of the fact that laws and processes are different here in Mexico, many non-Mexican buyers make costly errors because they don’t take the time find the information they need first.  In some cases when buying Mexico homes, the new buyers even make blunders that they would avoid back home – simply because of the uncertainty of being in a different business culture.  Based on their years of direct experience in the Mexico property market, a panel of experts from the TOPMexicoRealEstate NETWORK, “certified professionals that specialize in guiding new buyers through the Mexican purchasing process,” has identified the top 5 mistakes made by non-Mexican buyers.  The following is a compilation of their answers, giving a general overview of their answers for each of the five points, then giving their exact answers below.  Each mistake is followed by advice from the panel on how to avoid causing problems for yourself in that area.

The real estate experts who contributed to this article are:

Jim Scherrer – Puerto Vallarta Real Estate

Linda Neil – La Paz Real Estate

Mitch Keenan – Yucatan Real Estate

Thomas Lloyd – Playa del Carmen Real Estate

The top 5 errors non-Mexican buyers make are:

#1 Not surrounding yourself with reliable, experienced professionals

The panel’s answers point to this as the number one error that non-Mexican buyers make when buying Mexico Real Estate.  The key behind this is to find an experienced, reliable broker or agent.  After this, it is also necessary to find a notary public – again with knowledge and experience to do things right – and a Mexico title insurance company, among others. A reliable agent is central, as they can also help point you to other trustworthy professionals.

The panel’s answers are:

“Not using a reputable Agent/Broker, not using a reputable notary public, and using a Title Company.” – Mitch Keenan – Yucatan Real Estate

How can you avoid this error?

“Check with the USA Consul in Mexico. They have a list of recommended Notary Publics and Agents.” – Mitch Keenan – Yucatan Real Estate

“When you select an agent, make sure that the agent is member of AMPI, The Mexican Association of Real Estate Professionals.  Also, check references.  This agent is representing your purchase in a country where you are not familiar with the laws; you need to be confident that that person is.” -  Linda Neil – La Paz Real Estate

“These top 5 errors are only a few examples of the items and risks that a non-Mexican buyer must administer. There are hundreds of other topics that a buyer must address and decide upon; only through EXPERIENCE can teach us to look for these issues. The best way to avoid all of these mistakes and other errors in the purchasing process is to surround yourself with experienced players. It costs the same commission rate to hire an agent with 15 years experience vs. an agent with only 2 months experience.  If you are making a $200,000 dollar investment wouldn’t it make sense to hire someone with credentials and years of experience to represent you.” – Thomas Lloyd – Playa del Carmen Real Estate

#2 Buying from the listing agent and not finding an exclusive buyer’s agent

Even if an agent seems honest, reliable or experienced, no agent who is representing the seller can also represent they buyer fairly, since each one needs an agent protecting only their interest.

The panel’s answers are:

“The most common mistake I have seen are for new buyers to retain the services of a real estate representative just because he was advertising a property on the internet and had his email and phone number on a yard sign next to a property. I am surprised as how some non-Mexican buyers who are very diligent in their money investment decisions while in their home countries come to Mexico and will choose to retain the services of a real estate agent based on the fact that the agent is able to speak English.” – Thomas Lloyd – Playa del Carmen Real Estate

“Buying anything from a listing agent or the sales agent representing the developer; their loyalty is to the seller and they have a fiduciary duty to that seller. No matter how honest, nice, and sweet that agent may seem, it would be a conflict of interest for him to discuss any negatives about the property or to truly help the buyer in getting the best price and contract protection.” – Jim Scherrer – Puerto Vallarta Real Estate

How can you avoid this error?

“Use a professional buyer’s agent exclusively representing buyers and having no listings.” – Jim Scherrer – Puerto Vallarta Real Estate

“The agent who represents you as a buyer cannot represent the seller as well.  Agreeing to and signing an agency disclosure agreement can serve as further protection.” – Linda Neil – La Paz Real Estate

#3 Not carefully considering the implications of different property types, locations, etc.

Different property types have different have various considerations to be made.  Especially the area of pre-construction purchase of Mexico Condos needs special attention; preconstruction offers excellent opportunities, but for the buyer’s protection, the right steps need to be followed.

The panels answers are:

“Buying a pre-construction Mexico Condo with a payment schedule based on the calendar.” – Jim Scherrer – Puerto Vallarta Real Estate

“Buying in a remote (and supposedly growing) area in order to save money. As everyone knows, the three main rules to buying real estate anywhere are location, location, and location. During periods of recession and/or slow growth, these remote areas are the first to drop in value and the last to recover. With current economic conditions the way they are, it may be many years before the remote areas see any appreciation in value.” – Jim Scherrer – Puerto Vallarta Real Estate

“You should not attempt to buy Ejidal property. Ejidal property offers considerably lower prices, but it must be converted to private property before it can be sold.” – Linda Neil – La Paz Real Estate

“When purchasing in preconstruction, to allow for some money to be held back until the legal possession has been delivered. Many times the buyer will have paid out the entire value of the property, have received the physical possession, yet remain waiting for the developer to deliver the legal possession.” – Thomas Lloyd – Playa del Carmen Real Estate

How can you avoid these errors?

“The buyer needs an agent that knows how to write purchase contracts that protect the buyer’s initial deposit and progress payments. They should be prepared with payment schedules based on construction milestones, delivery dates, closing date, etc. as opposed to calendar dates. They should also have construction delay penalty charges, contingencies for 100% refunding upon failure to perform, and escrow protection.” – Jim Scherrer – Puerto Vallarta Real Estate

“Include only private property in your property search.” – Linda Neil – La Paz Real Estate

#4 Not reviewing contracts and documentation or following processes properly

Reviewing all documentation and following processes properly is necessary in any real estate purchase.  However, this is especially true when buying Mexico Real Estate, where regulations are not as well defined to protect the buyer, and taxation and other processes follow different rules than what buyers are used to in their home country.

The panel’s answers are:

“Many first time buyers do not understand the implications of the Capital Gains Tax issues. They believe that capturing a low acquisition cost on a property will decrease their closing costs expenses but forget to understand the more expensive capital gains tax levied against profits on the sale of the property.” – Thomas Lloyd – Playa del Carmen Real Estate

“A potential risk is not to check if you are dealing with the legal owner of the property.” – Linda Neil – La Paz Real Estate

“Assuming everyone they deal with has the same business ethics as they are accustomed to in the US or Canada, thereby not paying extremely close attention to ALL documentation they are signing.” – Jim Scherrer – Puerto Vallarta Real Estate

“Not including a clause in their purchase sales agreement to allow for the first beneficiary (the buyer) to have the voting rights transferred from the fiduciary for condo association meetings.” – Thomas Lloyd – Playa del Carmen Real Estate

“Some non-Mexicans believe they can hold property with a private contract and avoid paying closing costs and taxes. They are placing much of their hard earned money at risk by not receiving a title duly subscribed with a notary public and filed in the public registry.” – Thomas Lloyd – Playa del Carmen Real Estate

“Depositing money in an agent’s or seller’s personal account.” – Mitch Keenan – Yucatan Real Estate

How can you avoid these errors?

As Thomas Lloyd points out above, “these top 5 errors are only a handful of examples of items and risks that a non-Mexican buyer must administer.”  It is almost impossible for an new buyer to manage, and often even be aware of, all of these considerations.  Therefore, it is of key importance to have a reliable agent whose experience gives them the necessary knowledge of the various contracts, processes and documents involved.  Additionally, the panel points out the following:

“Never deposit money or give money to an agent or a seller without verifying that the agent has a verified earnest money account or escrow account.  It is always a good idea to spend the extra $500 bucks to set up an escrow account with a title company to hold the deposit.”  – Mitch Keenan – Yucatan Real Estate

“Deal only with the legal owner of the property or a legal power of attorney.  It is necessary to request, receive and review a copy of the title.  For cases such as this, your agent will have to know Spanish, or you will need to get a certified translation.  You should also have a title investigation, and buy title insurance.  Even if the prices are high, it is worth avoiding risks involving the title.”  – Linda Neil – La Paz Real Estate

#5 Rushing a Decision

Your Mexico real estate purchase is one of the most important decisions you will make, whether it is property for your home, or for an investment.  Rushing into a decision can have undesired, long term consequences.

The panel’s answers are:

“Being pressured into a hurry up decision.” – Mitch Keenan – Yucatan Real Estate

“Spontaneously buying on the beach, having no idea of the many magnificent properties available with better views, neighbors, lifestyle, etc.  than can be found on the beach.” – Jim Scherrer – Puerto Vallarta Real Estate

How can you avoid this error?

“Never be pressured into a deal. Take your time do your due diligence.” Mitch Keenan – Yucatan Real Estate

If you feel you are being pressured, or not being presented with all the best options, also see the advice for error #1 “Not surrounding yourself with reliable, experienced professionals,” and error #2 “Buying from the listing agent, not finding an exclusive buyer’s agent.”

For further information about buying Mexico Real Estate and avoiding costly errors, contact a Mexico Agent in the TOPMexicoRealEstate NETWORK; OUR EXPERIENCE; thousands of Property transactions & years of assignments in Mexico AT WORK,  PROTECTING YOUR INTERESTS.

Buying Mexico Real Estate can be an exciting experience, and one of the most important decisions you will make.  For this reason it is very important to know the ins and outs of buying real estate in Mexico, being familiar with the laws and the processes.  A key factor to consider is that in Mexico, the law does not offer the same regulations to protect buyers as in other countries. This having been said, buying Mexico Real Estate can be done safely, if the right steps are followed.

“Buying property in ANY country can be stressful,” observes Linda Neil, real estate expert from La Paz, Baja California, “A property investment in Mexico can be just as safe and secure as in the U.S. or Canada, if it is done correctly!”

A panel of experts from the TOPMexicoRealEstate NETWORK, “Your Expert    Property-Finders,” agrees that the most important step in avoiding the risks is selecting the right agent – an agent with experience and knowledge.

“The most important key player is an agent or broker with many years of experience,” says Thomas Lloyd, founder and president of TOPMexicoRealEstate.  “You are not looking for someone who knows where the best restaurants or bars are located, you want someone who has been on the ropes, someone who has witnessed problems or obstacles in previous transactions so he knows what to look out for.”

In the following interview, some members of TOPMexicoRealEstate’s panel of experts discuss the main risks involved, which they have seen during years of experience, and give advice on how to select an agent who can help you avoid these risks.

What kind of risks can buying real estate in Mexico involve? 

Here the brokers highlight several points in the purchasing process which buyers should watch, including property types which can pose higher risks if proper research is not done.  These risks are tied to, and made more significant, by the fact that regulations in the Mexico Real Estate industry are not as well defined as in other countries.

Mitch Keenan – Merida Real Estate

The largest risk is to NOT use reputable professionals. Interview several real estate agents and notary publics. Ask for references and check them. Raw land or raw beach is a more risky purchase than a home that has other homes on all sides of it. To mitigate that risk, use a title company. Additionally, when a fideicomiso is  issued by the bank to hold title, it does provide another layer of protection to the Buyer.

Jim Scherrer – Puerto Vallarta Real Estate

The risks are minimal when the economy is booming. During those times, the main risk is just paying too much. However, during periods of recession the risks are numerous. The greatest risk would probably be in buying pre-construction developments with no assurance of completion.

Linda Neil – La Paz Real Estate

Mexico Real Estate agents are not obligated by the same regulations in Mexico.  They do not have the responsibility to disclose all problems or defects to buyers or sellers.  The fact that the government does not regulate real estate to the same extent as in other countries poses higher risk to buyers.

Thomas Lloyd – Playa del Carmen Real Estate

The regulations in Mexico are not as sophisticated in protecting the real estate buyer as compared to our home countries.  For example, there are no disclosure laws regulating what information needs to be revealed to a buyer of real estate.

What does a buyer need in terms of information in order to avoid/reduce these risks?

Each of the brokers mention some specific steps to be taken to avoid specific risks.  However, as Lloyd mentions, “There are so many areas and risks that need managing it would be impossible for a new buyer to understand or remember to address each of these items.”  The key factor here is finding an experienced, knowledgeable professional who is very familiar with the details of these issues, and can guide the buyer through the process.

Jim Scherrer – Puerto Vallarta Real Estate

The buyer needs an agent that knows how to write purchase contracts that protect the buyer’s initial deposit and progress payments. They should be prepared with payment schedules based on construction milestones, delivery dates, closing date with “escritura”, etc. as opposed to calender dates. They should also have construction delay penalty charges, contingencies for 100% refunding upon failure to perform, and escrow protection.

Linda Neil – La Paz Real Estate

To avoid the risks involved in the lack of regulations is finding a buyer’s agent who adheres to principals and ethics.  One way to do this is to work with a agent who is a member of AMPI, the Mexican Real Estate Association; AMPI is connected with NAR (USA) and CREA (Canada), and its members follow a Code of Ethics.

Thomas Lloyd – Playa del Carmen Real Estate

Basically, I believe that it is very important that the buyer retains the services of an experienced broker. There are so many areas and risks that need managing it would be impossible for a new buyer to understand or remember to address each of these items. But, if you associate yourself with a person who is dedicated to such activities, a person who has years of experience and has witnessed and participated in hundreds of Mexico real estate transactions, such a person is an invaluable person to have on your team, taking care of your interests and monies.

What should the buyer look for in terms of an agent?

Having established that a good agent is the best way to avoid the risks involved in buying Mexico Real Estate, the brokers point out some elements to look for.  Some of the common points are experience, honesty, loyalty, thorough knowledge of the market, knowledge of Spanish, and experience in Mexico.  Most of these factors may not be measurable in a concrete way.  Keenan, Scherrer, Lloyd and Neil point to some indicators of these traits, which include certifications, licenses, degrees – Mexico now offers a real estate degree with a professional identification number, and, of course, references and testimonials (for these to be used well, there should be several, and they should actually be checked!) .

Mitch Keenan – Merida Real Estate

References. Lots of them. Check them.  Also years in the business. Reputation in the community. A license or career in real estate in the USA, Canada, Mexico or Europe. Choose an agent who has made a career out of marketing real estate. An agent who has taken the classes, received the certifications and has worked to stay on top of their field. Choose an agent that has lots of return clients. Find someone that you feel comfortable with on a gut level. If your gut is saying, “careful something stinks here!” Listen to your gut! Do your due diligence. Check references.

Jim Scherrer – Puerto Vallarta Real Estate

 A buyer’s agent exclusively representing buyers has “no axe to grind.” A true buyer’s agent has no listings and no biases toward one development over another, i.e., no fiduciary duty to any seller or developer. The buyer’s agent must be honest, loyal, fully knowledgeable of the market, familiar with all the key players in any real estate transaction, and an experienced business professional.

Linda Neil – La Paz Real Estate

A key step in avoiding various risks is finding a buyer’s agent, who represents only your interests.  An agent who attempts to represent both the buyer and the seller (called “dual agency”) will have conflict of interest; while the buyer is looking for the lowest reasonable price and all the benefits possible in his interest, the seller is looking for the highest reasonable price, and as many benefits as possible in his interest.  It’s not possible for one agent to represent both of these interests.  Besides reducing risks of not being informed of potential problems, hiring an exclusive buyer’s agent will ensure that the agent will search the entire market available, not just properties they are listing.

Some characteristics you should look for in your agent are: professionalism, knowledge and experience – education can be one indication of this, punctuality, which is sign of commitment, someone who listens to your concerns and needs, someone who looks ahead and predicts complications, honesty and cooperation.

Thomas Lloyd – Playa del Carmen Real Estate

There are several items a new buyer should insist from an agent or broker who he hires to represent him. Remember, you want someone who is going to protect you and your interests.

How many years has he lived in Mexico? Does he speak Spanish? How many years has he been working in the Mexico real estate industry? How many real estate transactions has he administered or participated? What credentials does he have? Is he certified? Licensed? Or does he have a Mexico real estate degree? The more years and experience a person has been living and working in Mexico is the strongest asset you can find in your representative. Don’t forget to ask for testimonials, (the more the better).

Who are the key players that will help you reduce your risk when buying in Mexico?

The brokers name certain professionals needed to make the process go smoothly, including a title company, a mortgage company advisor, a notary public, and a Mexican attorney.  Of course, just having these people around will not help.  They must experienced, knowledgeable and reliable.  As the panel points out, this points back to the choice of agent, who is THE key player; the right agent will also be able to help point you to other reliable professionals.

Mitch Keenan – Merida Real Estate

Notary Public. Title Company. Bank, for the fideicomiso. Broker or agent.

Jim Scherrer – Puerto Vallarta Real Estate

Of course, the main key player is the buyer’s agent. After the agent, a mortgage company adviser can be very important; after all, if the mortgage company won’t approve a loan, the purchase is probably too risky! Notary Publics will assure the paperwork and closing details are accurate, however they have no input into contract negotiations. Of course, the agent must be at least somewhat familiar with Spanish and should work closely with an experienced Mexican attorney since all contracts are written in Spanish

Thomas Lloyd – Playa del Carmen Real Estate

The most important key player is an agent or broker with many years of experience. You are not looking for someone who knows where the best restaurants or bars are located, you want someone who has been on the ropes, someone who has witnessed problems or obstacles in previous transactions so he knows what to look out for. A sharp lawyer is your second best ally. Again the more years of experience in real estate law the better.

TOPMexicoRealEstate NETWORK; Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely

In the Mexico real estate purchase process, the ONLY authority permitted to draft a deed transferring real property or an interest in real property (such as the Mexico Bank Trust) is the Mexican Notary Public This person is different from a Notary Public in the United States where a simple exam, bond, and a rubber stamp can make a Notary Public out of most people Nor it is similar to Canada's Notary Public who must meet a few more stringent requirements to qualify Not so many, however as the Mexican Notary

The Notary Public in Mexico must be an attorney, must have a minimum of five years of practical experience in the profession, must pass a highly technical examination AND then be appointed as a Notary Public by the Governor of the state in which he or she is working The number of Notaries Public depends upon the number of people in the state A new Notary is appointed only as the population grows above a certain size the Mexican Notary Public has many duties, but one of the most important is the drafting of deeds for transfer of real property Anytime a signature is required on a deed of transfer it must be made before the Mexican Notary Public

As of now, foreigners buying and selling their rights in the La Paz real estate market, in the Cancun market, or any property within the “restricted” zone, through fideicomiso rights, do not always have to appear before the Mexican Notary Public in order to transfer their interest in the real estate These transfers in many cases may be made by having instructions signed in the buyer or seller's place of residence and “legalized” or “authenticated” for use in Mexico This same process can be used for a power of attorney document in the event buyer's or seller's signature is required And what is a “legalized” or “authenticated” document

No matter what the document, it must be signed before a Notary Public in the place of residence; California, Arizona, Calgary, Vancouver…..or wherever Once signed before the Notary Public in the place of residence it must be “legalized” or “authenticated” in order to be considered as valid in Mexico This means that a designated public official performs a government act and certifies to the genuineness of the signature and the seal, and the position of the official who has executed, issued or certified a copy of a document

In 1981 the Convention abolishing the Requirement of Legalization for Foreign Public Documents entered into force in the United States Under the Convention, (signed in the Hague, Holland), signatory countries, including both the United States and Mexico, but not Canada, agreed to mutually recognize each other's “public documents” so long as such documents are authenticated by an apostille, a form of internationally recognized notarization The apostille ensures that public documents issued in one signatory country will be recognized as valid in another signatory country

Thus, if the document required for a Mexican transaction has been notarized in the United States it must then be sent to the nearest office of the Secretary of State and an “Apostille” obtained A search under state government in the yellow pages should reveal the telephone and location of the closest office of the Secretary of State The document to be authenticated through an Apostille can probably be sent through the mail and should not cost more than $25.00 U.S. dlls.

It is important to allow for extra time to accomplish this step Other countries that are signatories to the Hague Convention are, to name a few; Germany, Argentina, Australia, Australia, Austria, Bahamas, Spain, Israel, France, Greece and Norway.

All countries which are not signatories to the Hague Convention, such as Canada, must authenticate documents to be used in Mexico by obtaining a “legalization” or ratification of their document from the nearest Mexican Consulate It maintains a list of authorized Notaries with samples of their signatures and is able to ratify the authenticity of the Notary's signature

Many people object to the time involved and the additional step required to “authenticate” a signature for legal use in Mexico It is less expensive and less time consuming, however, than making a special trip to Mexico in order to sign a document before a Mexican Notary

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK

“Mexico s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!

What you need to know after the closing.

Congratulations! You have signed and closed on your new home in Mexico. But now what Before purchasing your property, you found tons of information about the buying real estate in Mexico.

But what about after the closing Owning real estate in Mexico is very different from other countries. There are important issues that need to be taken care of. Here is a list of some important post closing issues:

1- Pick up the titleescrituras when it comes out of public registry.

After the closing you can request a certified copy of the titleescrituras and it can usually be obtained in a few days to a week depending on the notary office. Your original title may take several or many months to come back from the registry office so it is a good idea to at least have the certified copy.

2- Change of ownership in the assessor s office (catastro). When you purchase Cancun real estate, or even in most areas of Mexico, it is not automatically changed to your name.

3- Change of ownership with the federal beach tax office (if the property is beach front)

4- Change the utilities in your name (or contract these services in case of a new construction)

5- Homeowner s and hurricane insurance

There are also ongoing obligations that need attention:

1-Annual Mexico bank trust fee. This is the amount paid to the bank where your trust is established. It can usually be paid by wire transfer to make it easier.

2- Property taxes must also be paid annually. You will not receive a tax bill. This tax must be paid at the town halls tax office (predial) and you will need to take a copy of the last year s paid receipt so they may calculate the next year s payment. This tax can be paid in December for the next year. There are discounts for paying the year ahead in this month.

3- Federal Beach Tax is also an annual payment. Some condominiums complexes include this payment in the condo fees, but not all of them so do check.

4- Homeowner s and hurricane insurance is also paid annually. Usually the insurance company will advise of any payments due, but it is wise to be aware of when your payments are due so your policy does not lapse.

You can normally contract your attorney, Mexico real estate agent or property manager to assist you with these obligations.

Cyndi Ader, originally from the US, has been living in Cancun, Mexico for 17 years. She is a member of A.M.P.I. (The Mexican Association of Real Estate Professionals) and is currently a member of the International Relations Committee. She is also an international affiliate of NAR (National Association of Realtors). She is the owner/broker of Cancun Properties Real Estate and specializes as a buyer s broker.

THE TOPMexicoRealEstate NETWORK “Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely ! ” (512) 879-6546

If the Mexico real estateproperty you are purchasing is already in a trust (fedeicomiso) you may either: request assignment of the rights to you, or may request a new trust for fifty years If a new trust, a permit from the Secretary of Foreign Relations is required Whether a new trust or an assignment of rights, the deed in the new buyer's name must be registered in the National Foreign Investment Registry

When considering a new trust or an assignment of rights here in the La Paz real estate market, the factors we consider are: 1. Remaining term of the existing trust – when will it need to be renewed ; and 2. – What are the annual fees under the existing Mexico bank trust If the permit has an unexpired term of less than fifteen or twenty years and/or the annual bank administration fees are more than $500.00 U. S. Dollars, it probably makes sense to obtain the permit for a new fifty year trust with a bank offering more attractive fees

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 THEwww.TOPmexicorealestate.com NETWORK

“Mexico s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!

Mexico Condominium Regime; Investigate the Status

A word of caution for those who are considering the purchase of a Mexico condominium or a lot in a subdivision Just as in other countries, the unit, or lot must be legally described and an individual property tax number issued This individual property must be registered in both the Property Tax Office and in the Mexico Public Registry of Property

Often, a developer will spend time and energy on promoting the sales of Mexico real estate properties prior to completing the establishment of the Condominium Regime Until this is completed, legal title to an individual unit or lot cannot be granted since there is nothing to describe! Whether in the La Paz Real Estate market or any other region of Mexico, be sure to investigate the status of the condominium regime prior to completing the offer to purchase!

Mexico Registered Title; Insist Upon Its' Reception

The purchase / sale document signed by buyer and seller is generally legally valid between the parties to the transaction It most likely contains the description of the Mexico property, the price to be paid to the seller, and any other special terms and conditions It may be drawn up by the parties, their agent(s), or by a third party It should be considered as an interim contract, however Until the final deed is drafted by, and signed before a Mexican Notary Public and duly registered, the transfer WILL NOT provide valid notice to third parties This final deed must be recorded in the Mexico Public Registry Office of the municipality in which the property is located Mexico's land registry system functions in much the same manner as those in the United States or Canada Unless the deed for the rights of the beneficiary has been recorded, there may not be a remedy for the purchaser who neglected to obtain a registered deed…his interest, his investment, may be lost

When a foreigner is acquiring residential property for which a Mexico bank trust is required, the purchaser should receive a deed which has been signed by the bank trustee before a Mexican Notary Public This will name the beneficiaries and the substitute beneficiaries of the trust in accordance with the purchaser's instructions A full description of the property must be included, seller's capital gains taxes paid and buyer's acquisition tax paid These receipts should be included in the deed document which may consist of eight or ten pages, or more The final page of the document should bear the stamp of the Public Registry, together with Book and Page numbers and the date on which it was recorded If this stamp is not on the document, the transaction has not been completed, the buyer is not fully protected

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 www.TOPmexicorealestate.com

“Where 11 TOP real estate experts from ALL regions of Mexico come together to share their Tips & Knowledge to help you buy safely !”

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

So, you have found your Mexico real estate propertyOr in my case, you have found a Yucatan real estateproperty, we have negotiated and signed a contract, you have paid your Mexico earnest moneydeposit and contracted with a notario/attorney to handle your closing. You have decided to either utilize the Fideicomiso, corporation or both. Your attorney/notario has copies of your passport, visa, the contract, and perhaps a POA from you to sign on your behalf.

The ball is now in your attorney's court to prepare all the necessary documentation for closing. This documentation includes checking to see that there are no debts or liens against the Mexico property; that the taxes are paid, the meets and bounds descriptions are correct, title is clear, the property is in the name of the seller listed in your contract, order the permiso for your Mexico bank trust(Fideicomiso) and/or create your Foreign Owned Mexican Corporation.

Typical closing time from signing the contract to actual transfer of title is a process of 4-6 weeks. If there are problems with the title or meets and bounds it may take longer. Usually the “Offer to Buy” purchase contract provides for an automatic extension of 90 days to acquire proper documents if there is a problem. Should the documentation problem take longer to rectify, the seller and buyer will need to sign a contract to amend the closing date.

Most foreign buyers wire the proceeds for closing to the Mexico real estate agent's earnest money account a few days prior to closing. If the Seller wishes to be paid in pesos, the realtor exchanges the proceeds into pesos on the day before closing and orders certified checks or cash to pay the seller and the notario. The realtor issues a final closing statement for review by the seller, buyer, agents, attorneys, and bank the day prior to closing.

The Mexico notary public will provide the buyer with a copy of certified escrituras at closing, after all signatures are collected. Afterwards, the notario will send the new escrituras to the office of the Catastro for recording of the new owner and title. The Catastro will then send the newly recorded title either back to the notario, the buyer, or the buyer's agent or accountant. The Office of the Catastro is notoriously slow. It is not unusual to wait many months for the new escrituras.

The offices of Catastro in the states of Yucat n and Quintana Roo are in the process of moving all the title and property tax information from paper files to electronic files that will be digitalized and stored electronically. This process has caused additional delays in receiving new title documents from the Catastro.

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

I have been putting together various posts on the processes involved on how to buy Mexico real estate. You can see the previous posts on this series by clicking here Mexico Dream Home Below I will start to discuss the Mexico Bank Trust

Payment of the purchase price is not enough In order to have a valid ownership interest in the property which you are buying it is necessary to have the title recorded This puts the rest of the world on notice that the property is yours If you area a foreign person purchasing property in many parts of Mexico, including the La Paz Mexico real estate market and all of the Baja pensinsula, the property will transfer not to your name but to the name of a Mexican bank as trustee for your interests The Mexican constitution prohibits direct ownership of real property by foreigners in the “prohibited zone”, a strip of land thirty miles wide along its seacoasts and sixty miles wide along its borders with the United States and Guatemala/Belize, as well as the entire Baja peninsulaThis is the reason for the bank trust, the “fideicomiso”, which has been established under the guidelines of the Mexican government so that foreigners may be protected in their property acquisitions

Whether you are purchasing in a zone requiring a bank trust or in an area where title can be taken directly into your name, it is necessary that this transfer take place and your interest registered as soon as possible after the successful conclusion of the negotiations to purchase your dream property Until this transfer takes place you are vulnerable: the seller may die, the heirs may be unwilling to recognize your rights in the property , you may become involved in a lengthy and expensive probate proceeding Meanwhile, your interest may not be recognized by the authorities should you wish to obtain a building permit, by the bank should you wish to borrow money and use the property as collateral or as part of your assets; by the courts should a third party also claim an interest in the land, or, very importantly, should you later decide to sell it

The prudent buyer of real estate in the United States or Canada would not consider leaving his title “in limbo” in either of those two countries; one should not do so in Mexico either.

The foreigner purchasing real estate in Mexico is buying personal, not real property if the acquisition is on the Baja Peninsula, within thirty miles of any coastline on the mainland, or within sixty miles of any border The acquisition is personal property How does personal vs. real affect the foreigner who acquires property under a Mexican bank trust The effect is negligible Instead of using the words; “transfer of title” one should more property say “transfer of trust rights”, or, “assignment of trust rights” In practical terms the beneficiary has full control of the property He may direct the trustee bank to 1. – lease the property, 2.- mortgage the property, or 3.-sell the property The foreign owner enjoys full rights of usage and may do anything to the property permitted under Mexican law He enjoys the same rights of dominion as any Mexican citizen who has direct title to the property He may construct a building, tear it down or modify it in compliance only with the local zoning and planning ordinances or, if applicable, the home owner's condominium regime A permit to acquire the rights in the property must e obtained from the Secretary of Foreign Relations and the terms of the permit form a part of the deed Currently, the term for a trust is fifty years Multiple renewals are permitted under that law By requesting extensions each fifty years a property may be controlled by a family or business entity for generations

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 www.TOPmexicorealestate.com

“Where 12TOP real estate experts from ALL regions of Mexico come together to share their Tips & Knowledge to help you buy safely !”

I remember when I first started looking for property for myself down in Mexico. I will admit that I was pretty confident and made…quite a few mistakes mainly by trying to do various things on my own I was a strong believer in my own investigative abilities, I knew how to negotiate in Mexico, and I had seen my good share of various types of business contracts in Latin America But soon, after my solo property search adventures, several late nights of worrying about my money deposits, and various headaches from that first dreadful Mexico real estate purchase experience, I suddenly remembered that good old simple advise that my father and some business teachers had shared with me, “DONT STUMBLE OVER YOUR OWN PRIDE…ALWAYS SURROUND YOURSELF AND LISTEN TO PEOPLE WITH EXPERIENCE”.

When I started looking for properties down in Mexico. I started on the internet. Back then, I thought that when a property was listed on a web page in Mexico, the only Mexico real estate agent who could deal with that property was the listing agent that appeared on the web site! So here I was, surfing the internet, calling 5 different web sites, sending 8 different emails trying to collect information and data on various Mexico real estate options Some agents called back, some never responded, I had messages from Juan, messages from John, incorrect data from Pablo, it became complicated quite quickly.

OK, so what do the EXPERIENCED Mexico real estate experts recommend

Linda Neil with 35 years of experience in the La Paz real estate market suggests -

Her article Purchasing Your Mexico Dream Home states, “Step one in your property search is to find a Mexico Real estate agent who will represent you the buyer…an AMPI member…a buyer agent…interview….ask for credentials”

TIP 1) Interview and find a Mexico real estate agent who will represent you the buyer Most real estate transactions have two agents involved One to represent the interests of the selling party, the second to represent the interests of the buying party

Continuing with my adventure during my first experience in searching for real estate in Mexico was the investigation phase I finally was able to identify about 7 properties that were rescued from my mess on my desk from my first phase of investigation on the internet These seven properties looked as if they could fill the criteria points I was searching So I called back to each of these different offices for further information I did not think it would be “business smart” to tell the real estate offices that I was also collecting property information from other agents I was searching for the best prices and thought the best way is to have each send me their best options they had in their office I did not know that agents in AMPI work together sharing all information amongst their database.I was doing my own analysis, collecting my own information, preparing my own comparison tables.Watch out Mexico, with my analysis you wont know what hit you when I get off of that plane

What do THE Experts and Mexico real estate blogs suggest on solo investigations.

Mitch Keenan with over 15 years experience in the Yucatan real estate region adds the following.Buying Property in the Yucatan Market article lists the following advise”A good real estate agent will build a solid relationship with their clients, helping them with a range of issues that the foreign buyer would never be aware about” (History and credibility of the builder, the neighborhood and its safety issues, the price trends of similar properties throughout the market) “If you are out of town and even more so if you are out of the country, how can you expect to study the many factors and history that goes into a good market opinion on the value of a property You need a point man on the ground to look out for your interests.”

TIP 2) Work as a team with your buyer agent If you find a property on the internet, share the property with your buyers agent, let him investigate, let him give his in put and his knowledge,ask him to take pictures, ask him to investigate the legal status. Even though it is a listing from another agent, your buyers agent can call up the listing agent on your behalf, investigate the property professionally before your trip to Mexico saving you much time and much money.

In my first round with property searching, I was excited to physically visit and see with my own eyes the various options I had selected.A good start early in the morning sounded like a good plan for my first appointment I arrived sharp and a few minutes before with all the excitement of the full day of activities that awaited me The agreed and confirmed hour to meet had arrived and the agent had yet to show up.15 minutes later, no one yet 30 minutes ahhh finally.But I either had to rush quickly to see this first option or else call up my second appointment and tell him I am was running late I rushed through the tour, took some quick notes and scribbles, forgot a couple of questions and off I went to the next visit Second visit went ok, but then trying to find my third house, the street numbers jumped from 104 up to 188 What happened to 122 This is more common in Mexico than you can ever imagine of inaccurate street addresses So after driving back and forth about 5 times, I decided to scratch that option completely off of the list An hour later, I have an agent who is not happy asking why I stood him up With only three hours into operation “Mexico property search” I have a splitting headache and am ready to go to the beach and call it quits

Once again, lets see what the good old EXPERIENCED PROFESSIONALS sayWhat advise does a TOPMexicoRealEstate expert Jim Scherrel have on this topic

Jim Scherrel from the Puerto Vallarta real estate market points out the following items that your buyer representative will deliver when working with you as a team His article Mexico Buyers Agent How Important are Their Services lists the following, “your buyer representative will help you by a) unbiased and shows all properties available in the market b) thoroughly researches properties pros and cons c) conducts a comparative market analysis amongst many other activities”

TIP 3) Don't waste valuable time trying to coordinate property visit meetings in a foreign country.

people arrive late, fighting to find properties on unknown streets, focus your time on collecting data, taking photos, organizing and evaluating Use your time wisely.

Its the simple advise that many times can be the most valuable It applies in Mexico too “Surround yourself with Experience” and enjoy Buying property here can be exciting, fun, and profitable

Thomas Lloyd graduated from Purdue University Krannert School of Management witha degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. With a Mexican Real Estate Certifications and various diplomas he is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the companys' web site www.TOPmexicorealestate.com

“Where 9 TOP real estate experts from ALL regions of Mexico come together to share their Tips & Knowledge to help you buy safely !”

Find out how to protect your good faith deposit and Mexico Earnest Money.

Your ready to buy your piece of paradise, but handing money over to someone you don t know in a foreign country is a scary proposition. So how do you protect yourself from a fraudulent situation

Purchasing property in the Cancun real estate market and even in all regions of the Mexico real estate market is a quite different process than in many other countries. And when it comes to handing over deposit money, many buyers make the mistake of leaving their good judgment at home; thinking this is Mexico and this is how business is done here.

Most of those trustworthy buyers have purchased without problem, but there is always a risk. It is not necessary to have a Mexico Real Estate license to sell propeties So it is important to know who you are dealing with and how to protect your interests.

Mexico Escrow Services

Although not widely used in Mexico, escrow services are available through well know US companies and should be your first choice. There is a fee, but the protection it offers is well worth the extra expense.

Escrow is mostly used for re-sales but the property owner must be in agreement This can sometimes be an obstacle as some Mexican owners do not understand the concept of escrow. In most cases the listing broker can convince the owner if it is properly presented.

Mexico Broker

This would be the next option only if the property owner will not accept escrow deposit. Either the listing broker or the buyer s broker holds the deposit. This is more of a risk, so ask for references and DO CHECK THEM.

Mexico Developer

Most developers will not accept escrow deposits as they use incoming funds for construction. Deposits may be refundable or non-refundable (before the contract is signed) so do ask. It is important to work with a broker that you trust to present you with projects by developers with a proven track record.

The Mexico Property owner

It is customary for the initial deposit to go directly to the owner in the case of a re-sale. This is very risky and I do not recommend this situation. If unavoidable, do so in conjunction with your OWN Mexico real estate lawyer, following his advice so he can make sure you are legally protected.