Life in the Riviera Maya is never dull.  The Playa del Carmen real estate market is always full of activities filled with interesting events and activities that appeal to a wide range of tastes and keeping visitors coming to visit our little community throughout the year.  This past week end, the jazz festival held an amazing event with international musicians giving the region and visitors from other countries an amazing 4 day event filled with music and talent.   Many times while my my office is busy working in our Playa del Carmen real estate industry, we lose track of time and fail to smell the roses and appreciate the wonderful events that occur in our own back yard.  One of these annual events for example is the unique Sea Turtle Festivals.  During the days of October 16, 17 and 18, and each year in October, the  Sea Turtle Festival takes place in the  Playa del Carmen,  Tulum areas and its nearby beaches.

The Festival was a free event for the whole family, where Tulum and Playa del Carmen’s residents, Mexican and non-Mexican residents alike, joined with visitors to learn more about sea turtles, an endangered species. Through this event a forum has been created for distributing information about organizations working around to protect sea turtles through artistic,  environmental, and cultural activities.

On Friday 16, at the Casa de la Cultura de Tulum, presented various conservation programs for sea turtles, and a series of artistic and cultural activities, such as a collective painting exhibition called “Chelonia Ak” and a children’s art competitions, for children from primary schools in Tulum.

On Saturday, 17 October from 7 am, Playa Pescadores, “Fishermen’s Beach” was decorated with bright colors and shapes to welcome the official clean-up effort of the beaches, as well as sand sculptures and kites.

On Saturday afternoon, the “Shrine of the Sea Turtle Xcacelito Xcacel,” near Tulum, was decorated for a party, to  offer the collective experience of the “Freeing of the Sea Turtles” Ceremony, where each of the participants, working together with the elements of nature and various art forms, participated in a tribute to these ancient inhabitants of the seas and beaches.

Mexico has been called “the country of sea turtles,” as the diversity of coastal environments and the richness of our coast offer ideal food, rest and breeding conditions for sea turtles. Of the 8 species of marine turtles in the world, seven nest on Mexican beaches and four in Quintana Roo, the State where Tulum and Playa del Carmen are located. For the Green Turtle (Chelonia Mydas) and Loggerhead Sea Turtle (Caretta caretta) in particular, Quintana Roo’s beaches are among its main nesting sites worldwide, and the most important on national level.

However, the unauthorized over-fishing, poaching of their eggs and the destruction of their habitats by human activity have led to the sea turtles’ status as an endangered species.

The Sea Turtle Festival was organized by Flora, Fauna y Cultura de Mexico, Xcaret Park, and other civic organizations, companies and governmental authorities of the City of Tulum and the Municipal government of Playa del Carmen.

For further updates about events in Tulum and Playa del Carmen, and life in this area, and indispensible Mexico real estate information, keep up to date with our Mexico Real Estate Blog.

Beatriz Lozano, “TOP Mexico Real Estate NETWORK; Mexico’s leading specialists for finding and purchasing Mexican properties safely !” (512) 879-6546 or the company’s web site www.TOPmexicorealestate.com

As non-Mexicans buying Mexico Real Estate, one of the first things you might look for (and should look for!) is an indication of a high level professionalism in the Mexico real estate agent you are considering to represent you in the process.  Back in the U.S. and Canada, and other countries, we know that a practicing real estate agent is required to hold a state issued real estate license, indicating a sufficient level of knowledge in the industry, as an official demonstration to clients that he or she is able to carry out such a transaction for you.  While there is no Mexico real estate license requirement for most states, you will be happy to know that recently a degree in real estate and a Professional Identification Number have been implemented in Mexico.  While the degree is currently not required, it shows that Mexico is moving towards a level of professionalism similar to what we are used to back home, and perhaps even higher.

If you do your homework, as a soon-to-be buyer of Mexico Real Estate, you quickly learn that in this country most states have no real estate license requirement, with the exception of Sonora and Nayarit.  If you continue to do your research, and make sure you find out something about the business culture you are about to participate in, you will also learn that other regulations to protect real estate buyers are not as well defined.  This will lead you to the conclusion that you need a well experienced, reliable, knowledgeable professional to guide you in the purchasing process. Next, you will ask for and check references, and ask for experience and evidence of professionalism (certificates, membership in  professional organizations such as AMPI, etc.).  While this process will continue to be necessary on your part as a buyer, the new degree will serve as a nation-wide indicator of professionalism and knowledge for the Mexico real estate agents and brokers who hold it, and could save you a few steps in all this research you have to do.

The Implementation of the New Mexico Real Estate Degree

The new university degree in Mexico Real Estate is a very recent step forward in the Mexico real estate industry.  Only this year, 2009, the Mexican Association of Real Estate Professionals (AMPI), managed to have the Mexican Federal Ministry of Public Education (SEP) implement the new degree.  This degree serves two purposes; one is to give professionals with years of experience directly in the field an opportunity to demonstrate their knowledge officially, and to earn a university degree to reflect their abilities; the other is to allow inexperienced university students to take a full 4 year course of studies in real estate so that they enter the field better prepared, and have solid base of theoretical knowledge on which they can begin to build experience.

The degree itself was implemented at the request of AMPI as a response to the lack of license requirements in the field.  Much of the work to set up the degree was done on a non-paid basis by AMPI.  Since the government has not been making requirements for official professionalism in the field, AMPI felt the need to respond and “professionalize itself.”

Obtaining the Degree through an Exam and Evidence of Experience

In the Mexico Real Estate industry, there are already a large number of professionals who have used experience to gain a thorough knowledge of the field, and have supplemented this with courses, diplomas and other forms of training.  They have made themselves highly experienced and knowledgeable professionals.  A part of the implementation of the new degree is to allow such professionals to earn the degree by demonstrating and re-enforcing the knowledge they have already acquired. For this purpose, an exam was created.  Experienced professionals can choose to take a preparation course, in order to review and preview the information required to complete the exam.  Even just to enter the preparation course, there a minimum experience requirement; La Salle University, for example, has a 3 year experience requirement.  The exam itself, administered as a joint effort by AMPI and CENEVAL, is a 5 hour exam, with 177 multiple choice questions, divided into 8 sections.  The first exam was administered early in 2009, in 16 different locations across Mexico.  The exams were administered simultaneously to increase test security, avoiding access to the questions before the exam at any location.  The exam was applied according to strict guidelines in all aspects to ensure professionalism and security.

For these professionals who choose to obtain the degree in this manner, the exam is only the first step. If they successfully pass the exam, they must also demonstrate direct experience in the industry.  This experience can be demonstrated, for example, through certificates, letters from their AMPI office, and documents evidencing that they have carried out real estate transactions, i.e. from notary publics, etc.  All documentation must meet strict requirements and is carefully evaluated.  Candidates who both pass the exam and demonstrate their experience successfully are granted the new degree in real estate.  As can be seen from these requirements, the guidelines and professionalism of the process guarantees that only experienced professionals can obtain the degree in this way.

University Course of Study

The degree will also be available as a regular 4-year university course of study at selected, reputable universities, both public and private.  This option is available for university students, usually entering from high school, wishing to prepare themselves professionally for a career in real estate.  While these students will not have the experience which they can only gain with time and participating in real transactions, the degree will give them a firm base of knowledge to begin their career.

The Professional Identification Number

Another element which has been implemented with this degree is a Professional Identification Number, or “cedula profesional” in Spanish.  This Professional Identification Number will be granted to each person who receives the degree, and only to those who receive the degree.  In Mexico the “cedula profesional”  is applied only for highly trained professions, such as doctors and lawyers.  The implementation of this “cedula profesional” for real estate brokers is an indication of moving towards the same level of professionalism as the fields of medicine and law.

The Future of the Degree and Requirements

There are two key differences between this new degree and real estate licenses as we know them from back home.  One is that the level of professionalism and involvement to acquire them is actually higher than real estate licenses in the U.S. or in Canada.  The process of obtaining the Mexico Real Estate degree is far more involved, and the test and documentation process is carried out on a more secure basis.

The other difference is that the degree in Mexico is not yet required.  For the moment, the new degree and Professional Identification Number are obtained on a voluntary basis.  In the future, AMPI hopes to move towards legal requirements, perhaps for the broker of each office to hold the degree, with the eventual hope that all who dedicate themselves to this industry will have the new degree.

Implications for buyers of Mexico Real Estate

While the degree is not yet a requirement, it indicates a movement towards a very high level of professionalism on an official level for the Mexico Real Estate industry.  It also serves as an current indication of this same high level of professionalism for the brokers and agents who have chosen to obtain, and demonstrated their ability to obtain the degree.  In these cases, the degree and Professional Identification Number are an official and reliable demonstration of what you as a real estate client would otherwise have to investigate in a more time consuming way; thorough knowledge and a high level of experience to protect your interests and guide you safely through your Mexico purchasing process.

TOPMexicoRealEstate supports the same values towards which AMPI is moving with the implication of the new degree; a high level of professionalism in the field, and continuous education and expansion of agents’ knowledge of the real estate industry to serve you, the clients, better.  One way in which this commitment was demonstrated was through the fact that Thomas Lloyd, founder and president of TOPMexicoRealEstate, was among the first group of Mexico Real Estate professionals to receive this degree.

Beatriz Lozano, “TOP Mexico Real Estate NETWORK; Mexico’s leading specialists for finding and purchasing Mexican properties safely !” (512) 879-6546 or the company’s web site www.TOPmexicorealestate.com

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.

You find a very interesting Mexico Home on the internet, and the price looks right.  Or maybe you’re down in Mexico for your vacation on the beach and you see a great looking Mexico Condo, in a perfect location with a for sale sign on it.  What’s the first thing you should do?  Call the phone number on the sign, or on the web page advertising the property?  You get the best deal that way, since you’re going straight to the seller, without involving more people in the transaction, right?  WRONG!    False logic, it seems simple that contacting the listing agent would appear to be the first best step to excercise; this misconception can lead to inadequate representation of you the buyer or a conflict of interest between buyer and seller in the Mexico real estate transaction.    

Linda Neil, La Paz Real Estate expert, and Jim Scherrer, Puerto Vallarta Real Estate expert, of the TOPMexicoRealEstate NETWORK, explain quite clearly why you should choose a Mexico real estate agent who represents only your interests as a buyer, and how to avoid such risks when buying property in Mexico.

One of the biggest misconceptions about the real estate world is that by contacting the listing agent, we save something; we think we save money – either by finding a better price, or by saving commissions; we think we save time, avoiding more steps in communication or extra contracts.  We will see that these perceptions are entirely false!  In fact, if you have the listing agent represent you the buyer in the purchasing process, you could end up paying more, and allow yourself to be placed in great disadvantages within the contracts and in other aspects of the sale.

First of all, let’s consider the point of saving money.  As for the purchase price, first we need to consider who the listing agent is working for.  The listing agent has been contracted by a person or company selling a piece of real estate.  The agent has signed a contract and has a fiduciary obligation to the seller – a completely normal arrangement.  That agent is obligated to protect the interests of the seller.  What are the interests of the seller?  Getting the HIGHEST PRICE reasonably possible, and including as many benefits in the seller’s favour as possible.  What are your interests as a buyer? Getting the LOWEST PRICE reasonably possible, and obtaining the most benefits in your favour.  These two sets of interests cannot coincide on all points – especially not in the area of PRICE.

“How is one agent, negotiating between buyer and seller, going to be able to obtain all of this for buyer and seller?” observes Linda Neil.  “Smells like conflict of interest to me!”

An honest seller’s agent committed to protecting the needs of his clients would refer you, the buyer, to another professional agent who could represent your needs fairly.  The trouble occurs if the listing agent is not upfront about his or her obligations, and attempts to represent both you and the seller.  You, as a buyer, must avoid this situation.

Now, having established that it is a conflict of interest for a seller’s agent to represent you, the buyer, specifically in the area of cost, do you really think that the listing agent will be able to get you a lower price than another agent?  Since his first and main obligation is to the seller, who is looking for the highest price, the opposite is probably true; you will end up paying a higher price.

Perhaps you are wondering about commissions.  Usually the commission is paid by the seller; the seller’s agent and the buyer’s agent generally split the seller’s commission 50-50.  There is usually no cost to the buyer to have another agent represent his needs, nor is there any extra cost the seller.

“Find a good buyer’s agent and have him contact the advertising agent,” says Jim Scherrer.  “It’ll cost the buyer nothing and will probably save him a fortune and many head and heart aches!”

The fact that the seller’s agent is looking out for the seller’s interest first could also have the result that you do not find out about problems either with the physical property or the paperwork.  In Mexico regulations are not as well defined, and as a result there is less obligation for agents to disclose problems with the property to the buyer.  If you do not have an agent representing only your interests, it is more likely that problems will go unnoticed or that you will not be made aware of them.

The same idea applies to paperwork.  The same amount of documentation is necessary whether there is one or two agents involved; again, having a buyer’s agent will ensure that there is someone looking out for and protecting your interests in the processes, and may in fact save you a bureaucratic mess later on, when issues surface later on that really were not in your best interest.  A buyer’s agent will watch out for your needs and make sure you are aware of what is going on.  Communication will also be clearer, since it is better defined who is representing who.

Another important point is that a committed buyer’s agent will give you a complete overview of properties available and suitable for your needs and price range, not favouring, or pressuring you to buy from a certain developer or seller.

“A true buyer’s agent,” points Jim Scherrer, “will show the buyer ALL the properties that meet his needs and budget; not just those they have as in-house listings.”

This means that you can explore and evaluate all the options.  If you do not have all the options presented to you, it is not possible to know that you are choosing the property best for your needs.

A buyer’s agent will also help save the buyer time.  Linda Neil lists the following items; the buyer’s agent can help evaluate the buyer’s price range and different financing options, review the condition of the property, advise the buyer concerning key inspections, suggest where they can find the experts to carry out the inspections, check costs of owning the property, such as property taxes and utilities, prepare and present the official offer, make sure the contract is as favourable to the buyer as possible, and review documentation transfer.  These steps can be time consuming, and many of them require experience to make sure that your interests are represented.  A seller’s agent may have the experience to know whose interests they represent, but may be limited by his obligations to the seller.

“A true buyer’s agent will negotiate the very best price possible” summarizes Jim Scherrer, “and will clearly discuss all the pros AND cons of the purchase while protecting the buyer’s best interests.”

Beatriz Lozano, “TOP Mexico Real Estate NETWORK; Mexico’s leading specialists for finding and purchasing Mexican properties safely !” (512) 879-6546 or the company’s web site www.TOPmexicorealestate.com

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 following interview, a panel of TOP Mexico Real Estate experts answer several questions about projections for the market in the last quarter of 2009 and in 2010.  Each member of the panel shares what they have  experienced in each of their local real estate markets.  While each area varies, the general tone is that 2009/2010 has and will remain a buyer’s market.  ”There are great opportunities so long as buyers know where to search and the buyers have an experienced on site team to help manage risks and have strategies for the purchase of the Mexico Property.” -  Ivan Castillo

The interview includes 3 questions and each one is followed by answers from each of the panel members.

1. How do you see your local real estate market for the last quarter of 2009 and for the coming year of 2010?

Ivan Castillo – Stewart Title Lawyer

The real estate market is starting to move, of course not with the same intensity as past years, but definitely there are some good number of transactions closing. For the next year I see it a bit more stable with developments consolidating, more lenders and Mexico mortgages coming in and more prominent purchasers arriving to the area.

Cyndi Ader – Cancun Real Estate

I think the last quarter of 2009 will be slow for the Cancun Real Estate market. It is typically slow September through Christmas week. I think that it will improve by the end of the year and beginning of 2010.

Jim Scherrer – Puerto Vallarta Real Estate

July was my most active month ever as far as viewers on my website; August was my second most active. It’s obvious that folks interested in Puerto Vallarta Real Estate are doing a lot of reading about living in Mexico; however, few are inquiring about real estate purchasing.
 
When I found out that the developer of a certain magnificent Puerto Vallarta Condo complex was willing to drop the prices by 30-35% from last year’s prices – for example, a new $835,000 condo was selling at $550,000 - I immediately sent out the details to my top 10 buyers interested in the best condos on the beach in the best area of town. I received a few responses.  From my perspective the buyers are still few and far between.  There are currently more than 7,000 new condos left unsold and on the Puerto Vallarta Real Estate market; this means that there are a lot of choices.
  

James Hopkins – Mazatlan Real Estate

This upcoming season in the Mazatlan Real Estate market should be fairly exciting. With the opening of the new convention center, the ongoing construction of many new Mazatlan Beachfront condo projects and the price reductions in our already very competitively valued market, there is great potential.  Interest in Mazatlan remains high and is growing, as Mazatlan was number one in tourism for the 2008-2009 season.

Jaime Niembro – Lake Chapala Real Estate 

 
Our office, Ajijic Real Estate, is the top-selling office in the Lake Chapala Real Estate area so our projection does not necessarily reflect the market in our area, as we are doing well.  Our average, last year and this, has been very satisfactory compared to years before…and we expect to do at least that well in 2010.  

With the recession in the U.S. we expect to see more people from there who are interested in the lower economics of living in Mexico, yet still being close enough to return to family and friends without a great cost of doing so.

Arturo Hernandez – Valle de Bravo Real Estate 

The market is moving.  A lot of rentals – at least 50% more than last year.  A lot of people who first rent here, soon want to live here permanently and end up buying real estate.  High class properties are also on the move; this type of client wants to see things move, so Valle de Bravo Real Estate has a lot to offer them.

Thomas Lloyd – Playa del Carmen Real Estate 

The Playa del Carmen Real Estate market has slowed down when comparing the Spring and Summer to the previous years activities.   It is interesting to note that here in Playa del Carmen we have seen several years with appreciation rates in key neighborhoods above 15%.  Now what is interesting is that many developers and brokers have noticed movements in the market coming from National buyers.  People are stating that 70% of their sales are Mexican versus 30% now coming from non-Mexicans.  We do have an interesting quantity of non-Mexicans who have seen what has occurred in their home country markets where decreases in market values can hover around 15% – 30% and many of these people expect to see similar reductions in the Mexican markets.  But, the first three quarters of 2009 has not copied these decreases to the same extent, the market is soft, but some property rotation and transactions are keeping the sellers with hopes that this winter and spring will bring another new breath of air into the region.  At the end of 2009 I see it remaining slow, 2010 depending on the tourism re-activation it should spur more real estate activity which will slow as in previous years during the last semester of 2010.  In 2-3, and 5 years,  I see a very strong demand which I explain in more details below.   There is a slowdown in my region, but if you are on your toes and work with realtors who have the experience in navigating through these rough waters, (such as the brokers on this panel of TOPMexicoRealEstate Network)  This could actually be a time to save a nice amount of money and set yourself up for some interesting rebounding appreciation potential.   

2. Where do you see some opportunities?

Ivan Castillo – Stewart Title Lawyer

There are opportunities that I’m seeing in the market, such as: i) Purchase Prices are a bit lower; ii)  Purchase Prices are also negotiated in pesos; iii) the developers are structuring fractional ownership in addition to full ownership; iv)  more lenders are coming in the area.

The Mexican Purchasers are very important, just in Cancun 70% of purchasers are Mexican.

Cyndi Ader – Cancun Real Estate

There are lots of reduced prices making for some very attractive deals for both investors as well as end users. Those looking to buy a property for their second home or for their Cancun Retirement are wise to do it now while these deals are available.

Jim Scherrer – Puerto Vallarta Real Estate

The lower priced Puerto Vallarta Condos are in the $200,000- 350,000 range, down from the $350,000-700,000 range of pre-2008. We have some developers that are now promoting fractional ownership, which could offer some interesting possibilities.

The opportunities will be in the expected high tourist traffic, the growing interest in Mazatlan Retirement, the current favorable pricing and the willingness of owners to negotiate. This past summer, we have seen that the smart money has already become aware of these issues and has been buying some of the nicer properties in town.

Jaime Niembro – Lake Chapala Real Estate 

Our high season is coming up as we get lots of “snow birds,” many of whom are interested in a permanent property.  The majority of our sales are to U.S. and Canadian citizens, except for Lake Chapala Land, as many lots are sold to Mexicans.

Arturo Hernandez – Valle de Bravo Real Estate

Many people with different resources available are interested in purchasing Valle de Bravo Land as a secure investment.  There are a lots of ranches, 20,000 m2 and up, which offer packages, with services included such as  golf club memberships, closed areas for horse riding, tennis courts and swimming pools, and have nice restaurants and bars, etc.  It’s an easy home – you come and enjoy living, with no other worries.  Valle de Bravo Homes and Condos of this type are available for around $120,000 dollars.

Thomas Lloyd – Playa del Carmen Real Estate 

In my opinion, Playa del Carmen has 5 – 10 years of continued high population growth.  As many of you understand, population growth is one of the major factors that influence the market value of real estate.  Recently, the state government made an announcement that economic activity within Quintana Roo is the highest or one of the highest for all of Mexico hovering near 7% thus far for 2009 in spite of the fact that the majority of states are witnessing negative growth.  And in regards to tourism and the real estate industry, Quintana Roo is at the top of the list of revenue generation of which reason large amounts of public and private monies have been invested in only the past 12 months into large infrastructure projects throughout the Riviera Maya.  5 major bridges along the highways leading from the Cancun airport through Playa del Carmen, down into Tulum have been constructed during this past spring and fall.  And only a month ago, another major project has been approved within the Playa del Carmen municipality to build a “second floor” highway to ease the flow of traffic coming from the Cancun-Tulum highway and the flow coming from the avenues connecting the west and east side of the city.  Hospitals?  Two years ago a Spanish operator opened up their doors in Playa del Carmen, another major public hospital is within 6 months of opening their doors, and now another private group with funding from the US is in the process to open up their clinic and hospital to specialize in Cardiology and Diabetes.   The opportunities that TOPMexicoRealEstate is finding for our buyers and our investors are from being able to find individual urgent sales.  Some individuals or organizations that have over extended themselves (many times it could be Americans with a second home in the region), are willing to take prices that are equivalent to the market value 2 or 3 years ago.  These are great opportunities if you take into consideration that we have seen 10% appreciation jumps for several years.  This is a lull in the market, or a dip in the market which investors need to evaluate if they feel that our region will either a)  remain stagnant for the next 2 or 3 years, or b) feel that the same growth which was seen over the past 10 years will return and continue over the next 5 years.  In Cancun over 20 years ago there was an explosion of growth where today it has reached a population of over 1 one million people, in Playa del Carmen there has been an explosion of growth over the past 7 years and today it has a poulation of a rough 200,000.  Tulum was just starting to see the start of a repitition of history with their own explosion.  So in my opinion, the odds are in the favor of a buyer of real estate so long as the buyer is able to see beyond 1 or 2 years.

3. Who do you see as the buyers, or what types of properties in your region do you estimate?

Ivan Castillo – Stewart Title Lawyer

Canadian, American and Mexican purchasers are very important; just in Cancun 70% of purchasers are Mexican. In fact some developers are changing there marketing strategies and they are also focusing on Mexican purchasers.

Cyndi Ader – Cancun Real Estate

I am still getting lots of baby boomers looking to buy for a Cancun Retirement although they may not be quite ready to retire. They are taking advantage of the lower prices in this current market. And in Cancun there are some Mexican buyers also looking for the reduced price deals. And the big demand for my market is still beach front or very close to the beach. 

Jim Scherrer – Puerto Vallarta Real Estate

My market is mainly Americans and Canadians.  But the number of baby boomers buying is lower than it has been.  As Ivan from Stewart Title indicated (and they are also accurate barometers of the market), 70% of the buyers are now Mexicans. They typically buy in the lower priced locations and complexes.

James Hopkins – Mazatlan Real Estate

Our buyers are Canadian, American and Mexican. At this point, all are interested in value and our market certainly has value to offer. Our buyers have a broad gamut of interests. Nationals are looking for a second home near the Mazatlan Oceanfront that they can use for their summer vacations, Americans and Canadians are looking for investments and Mazatlan Retirement properties. Mazatlan is a town that has something to offer all of them.

Jaime Niembro – Lake Chapala Real Estate 

We have a great many developments going up, especially gated communities, giving security and privacy.  We expect many who are part-time residents to feel comfortable living there and being able to lock up and leave for long periods of time without undue worry about safety for their property.

Arturo Hernandez – Valle de Bravo Real Estate

Most of our clients are Mexicans living in the capital.  A lot of them are looking for a second home in Valle de Bravo as a healthy way to escape from the big city.  This could also be an attraction for Americans and Canadians looking for a get-away from a busy life style.

Thomas Lloyd – Playa del Carmen Real Estate 

In 2009,  the key buyers have been Mexicans and major developers have been Spanish.  They are leading the investments all along the Mexican Caribbean.   Many non-Mexicans are arriving, seeing what has occurred in their home country or have been reading the financial stress that the world has faced and are expecting similar scenarios here in Mexico.  Yes, there are many areas of Mexico which are facing a tremendous slowdown given the fact that the Mexican economy is very closely tied to its northern neighbors.  But, regions in Mexico, as amazing as it sounds, can also see and witness growth.  The Playa del Carmen Real Estate market is not booming.  But, given that many Mexicans are moving away from larger cities (Mexico City, Monterrey, Guadalajara, Villahermosa) and looking for new opportunities or different life styles; Playa del Carmen Riviera Maya is definitely one of the top five places throughout Mexico where we are witnessing population growth.  (Playa del Carmen has been registered as the fastest growing community in Latin America).   So these population movements have sheltered this region from the greater impacts of the economic downturns and have made good investment havens for those who have properties in the region.   As for developers, Spanish companies have been investing strongly in foreign markets and within our particular region for the past 5 years and this can logically be traced back to Spain’s over-inventory challenges they have been battling over the past five years.  Major Spanish hotels and residential development projects have been growing along the Mexican Caribbean corridor.  Now if we look beyond 2009,  2010.  With the heavy investments in our region’s infrastructure, the attention on preserving the green areas by the federal government, the easy access to long distance transportation, the living comfort and all the first-world services being introduced,  I see a very strong demand coming from retired Americans and Canadians.  Keep a close eye on the growth from this segment and plan your investments accordingly.

Beatriz Lozano, “TOP Mexico Real Estate NETWORK; Mexico’s leading specialists for finding and purchasing Mexican properties safely !” (512) 879-6546 or the company’s web site www.TOPmexicorealestate.com

A milestone and historic event occurred in Mexico real estate this August Recently, the AMPI association was able to implement a new degree in the Mexican universities and obtain the classification of a new professional license for Mexico Real Estate professionals The new university degree is being offered as an option in the universities in response to the Mexican authority's concerns that improved standards and better training should be required for real estate consultants and professionals in Mexico Fernando Gonz lez Salazar, Director of the Professional License Department ofAMPI pointed outThe market and clients, demand true professionals, specialists in the commercialization of real estate with recognized studies and a professional license authorized by a federal government body.”

The new professional title is officially authorized and administered by the SEP (Secretary of Public Education), and is in response to the request from the consumer market The title is offered through a combination of a professionally applied exam of high security – and the requisits of demonstrating ample experience in the industry Or, also, the title can be obtained from attending 4 years of courses at several universities selected throughout Mexico

Antecedents

“We have estimated that there are nearly 19,000 people practicing within the Mexico real estate industry.” Mentioned Lic. Laura Flores, coordinator of the process EGATSU-CI within AMPIOf these approximately 2,300 are associates of the AMPI organization . Before the new title of Property Commercialization was presented, Mexico real estate licenses were not offered although certifications were available, such as those offered by CONOCER organization and by AMPI chapters. In the state of Sonora for example, a license to work in the industry was available and required The license was available for those who realized the test and obtained the certification.

A group of associates in the national office of AMPI have been working with great dedication for the past several years to change into reality the idea of a Mexico real estate professional license And in doing so, increasing the level of service standards in the Mexican real estate industry.AMPI contributed many man hours, knowledge and dedication from key members of their organization to ensure this milestone achievement was accomplished In July of 2009, the first Mexican Real Estate Title and Professional License was presented and delivered to Thomas Lloyd CONGRATULATIONS to AMPI, to CONOCER, to SEP, to all of the efforts and dedication from many people in the industry, and to Thomas Lloyd for having the opportunity to participate in this milestone event

Beatriz Lozano, “TOP Mexico Real Estate NETWORK; Mexico's leading specialists for finding and purchasing Mexican properties safely !” (512) 879-6546 or the company's web site www.TOPmexicorealestate.com

The latest news in the Playa del Carmen real estate market is the new AMPI board getting active in the industry to invite new members to get involved in the local association Last May, elections were held in the Playa del Carmen AMPIchapter and a new board was chosen Wilberth Gutierrez is the new president and has started to work immediately on introducing and beginning new ideas and projects to the regional industry AMPI is an organization that is represented throughout the Mexico real estate market in all states of the republic With 4,000 members nationwide, it is the leading association for this industry

Some of the main objectives of the new board for the next 2 years term are; Promotion of the Activities in the Real Estate profession, creation of an AMPI business center, support social programs and associations that are created for the municipality and the community, and also to continue the efforts of creating a career and educational programs for the brokers and agents that work throughout the Playa del Carmen region and in the real estate industry

This past friday, the first party to invite non-member and AMPI members was held on the roof top of the condominium project called DEVA This beautiful building hosted nearly 50 guests to mingle on the solarium to relax and speak of real estate activities in the community Music, pool, and ocean views allowed a pleasant back drop as Wilberth Gutierrez and the AMPI committees (Thomas Lloyd is currently serving on the Honor and Justice Committee) welcomed many new local realtors to become active in the process to voice their opinions and get involved in educational programs

The board also took advantage of the party to announce the program of a raffling of a Playa del Carmen condo A fully furnished condo, with title, with an estimated value of $300,000 usd will be raffled in the month of December of 2009 Other prizes will include 10 televisions, 10 scooters, 10 refrigerators, 10 vacation packages, and 10 laptops The money raised is for the construction of a business center for the Playa del Carmen AMPI section

Beatriz Lozano,” TOP Mexico Real Estate NETWORK; Mexico's leading specialists for finding and purchasing Mexican properties safely !”(512) 879-6546 or the company's web site www.TOPmexicorealestate.com

A common qustions we have in the Mexico Real Estate market when assisting non Mexican investors or buyers is

Q.) “Would we be able to use the same Mexico bank trust for multiple purchases or does each property have to have its own trust”

A good question. Our panel of Mexico Real Estate experts will answer below

A.) Rita Sheese of Cozumel Capital covering the Cozumel Real Estate Market answers:

“Each property will need to have it's own separate trusts, each established for a specific property.

A Mexico bank trust, or fideicomiso, is established for a Property…so trusts are property-oriented, not people-oriented. A specific property is the object of each trust contract, and the reason for the trust being established As an example: when a property held in trust is sold, the trust stays in place, only the beneficiaries in the contract change — the original beneficiaries of the Mexico bank trust (sellers) cede their beneficiary rights to the buyers, who become the new beneficiaries of that same trust.

A.) Linda Neil from the La Paz Real Estate region adds “A Mexico bank trust is required for each property since the trust (fideicomiso) is actually a deed to the rights in a specific property. A permit from the Secretary of Foreign Relations is required for EACH property and the text of the permit is included in the fideicomiso deed. The only exception to the one deed per property rule is where two lots are contiguous. Then both can be put into one deed but usually will still require two foreign relations permits.”

A.) Ivan Castillo,regional director and practicing Mexico real estate lawyer from Stewart Title responded: “One Mexico bank trust must be used for each property. Each trust contains particular information of the transaction, such as: purchase price, trustee, substitute trustee, own SRE permit, appraisal, amongst other items.”

For more reading click here for Mexico Real Estate Questions and Answers

Mexico condos are popular investment options for Americans, Canadians and British and even more so those which are in the pre construction stages But identifying the risks and knowing how to manage such risks are important factors to ensure good returns and avoid costly surprises

One question was brought to our attention from a reader which is listed below:

Q.) I have a question I'm wondering if you can answer about tax implications for pre construction condo purchases. I entered into a contract in July 2007 for a unit a Mexico real estate project X It was still in with a good reduced price when I purchased They required a 30% down payment and a final payment of 70% at close My contract is all in US dollars. My question is “What will be the peso amount captured on my Mexico title deed given that in 2007 the Mexico exchange rate was $10 pesos and in 2009 the exchange rate is $15″

A.) Linda Neil of Linda Neil Properties from the La Paz real estate market advises the following:

“the 30% paid in 2007 should be shown at the exchange rate the date paid and the remaining 70% at the rate on the date of that payment. Acquisition taxes will be paid on the total amount but that is only 2% of the total.”

A.) Ivan Castillo, regional director and practicing Mexico real estate lawyer from Stewart Title responded:

“Even though the purchase price was set in US Dollars, the deed by which the property is transferred will mention Pesos It s important that the purchase price calculated is well determined, since it could affect the parties when calculating closing costs.”

A:) Thomas Lloyd from Lloyd's Real Estate in the Playa del Carmen real estate market included the option “there are money exchange homes that can lock in exchange rates for future payments If you see your currency is slipping in strength, this may be a viable option Write us and we can give you more details”

A.) Linda also included that “This figure, plus allowable deductions, creates basis for the eventual sale of the property so it is not a negative to show the higher peso amount.”

For more reading click here for Mexico Real Estate Questions and Answers

This past Sunday, we took a family “Sunday drive” to relax from our past week of work in real estate, and to prepare for the coming week of work The difference of our normal Sunday drive was that it was on a boat and we went cruising along in my search for the best beach of Playa del Carmen My husband said he had a craving for ceviche, so his search was to find the best tasting fish in Playa del Carmen to make his best ceviche.

Off in the distance, we saw a beach that appeared to fit my description Solitaire with no other people except our party, soft white sand, and blue blue transparent water Our two kids were playing with their Canadian friend who was explaining or showing them how he would play in the snow back north Sledding and sliding down hillsHere in the Mexico Caribbean, the kids had to imagine snow, but they got the idea of what it is to slide on a small slope This is living in Mexico, this is living on a Mexico Beach side community!

My husband in the meanwhile, was trying his hand at net fishing on the shore After an hour or so, he got pretty good and was able to catch a small variety of fish for some sample ceviche and for bait for larger fish on the ride back to port After walking, exploring, some snorkeling on the nearby reef, it was time to head home

The small fish that my husband caught turned out to be pretty good lure As they were trolling, they hit two barracudasand reeled them both in which would be enough fish meat for a small family for a week

We made it back around 5:00 pm, cleaned the fish, washed the salt off of the equipment and off of us And we could not wait to see how the barracuda would turn out for the ceviche. Hmmmmmm good Yes, what they say about small fish for ceviche is correct And, we also recommend barracuda very highly for this dish too.Whether your living in Mexico, thinking of retiring to Mexico, or just coming down to get out of the cold, the beaches and fishing are fantastic.

Beatriz Lozano

www.TOPmexicorealestate.com

512-879-6546

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In Playa del Carmen as in many other cities throughout the world,have people with needs or people with lacking resources

But on the othe hand, again as in other cities throughout the world, the communities also have special people People with noble hearts to help Angel Notion is a NG organization (non Governmental Oranization) dedicated to helping those here in Mexico, focused in the Playa del Carmen region, identifying people in the community with needs and helping them find solutions I started working with Angel Notion a few months ago donating my time and helping them with their web page due to my belief in the cause The group and their director are doing an amazing job on helping people who need help Their principal work or goal, is to collect donations to cover the expensive costs for delicate operations and to save the lives of children with heart probems Today, being Christmas Eve and the days of the year where we place extra attention and sensitivity to the needs and wishes of the people around us in our lives I thought it would be a good day to introduce these concepts to my two young children of 3 years of age So we went to Angel Notion s annual event of CHRISTMAS WISH LIST distribution In this event, Angel Notion had selected a group of Single female parent families with economical difficulties These single parents, put together a list of items or services which they “wished” could occur or be obtained

A short history of the person, a single photo, and the wish list was distributed to volunteers here in Playa del Carmen area, and to many Americans and Canadians back in their home countriesThe volunteers would selct a family they wished to sponsor, and would donate the money to retrieve all the items from the listThroughout the morning, these wish list packges were delivered to the person/s in need Our children helped deliver the wish list packages and witnessed first hand how joyful, thankful, and sincere people are

The event that we participated today was one of many campaigns organized and sponsored by Angel Notion If you are looking for an institution to donate time or money visit their site for contct information or further information regarding this wonderful charity.

Bea Lozano www.TOPmexicorealestate.com 512-879-6546

Mexico is a country with many, many catholics Approximately 96% of the population believes and practices in this faith, in this religion A recent study states that an average of 200 people attend mass in approximately 9,000 parishes and chapels per hour on Sundays throughout Mexico December therefore is a month filled with many days of celebrations, many days filled with thanks, and days of rejoice This is a country known for it s faith

December 12th is the day of La Morenita, our Lady of Guadalupe People throughout Mexico take a trip to Mexico City to the Basilica de Guadalupe, this is where the miracle image of Lady of Guadalupe has been placed and kept.Hundreds of thousands of people arrive walking, on bicycles, and on their knees traveling from all parts of Mexico, some hundreds of miles away, others from the same capital.Regardless of their origin or the church of destination of thier Pilgrimage, it is a massive celebration throughout Mexico.

Here in Playa del Carmen on the Mexican Caribbean, the same pilgrimage was practiced through the tourist filled streets of the downtown zones People and children walked through the streets from the far south end to the north side of Playa del Carmen to the Catholic Church off of 30th Avenue

Beatriz Lozano

www.TOPmexicorealestate.com

(512) 879-6546

Playa del Carmen

South of Playa del Carmen about 15 minutes is the close gated community of Puerto Aventuras This neighborhood along the Mexican Caribean is both a golf community and also is the only marina community of the Riviera Maya This past Thanksgiving week-end Puerto Aventuras played host to the first annual 5 and 10 kilometer Marathon 2008.

The race started early Sunday morning with final call being at seven am sharp at the community kiosk Hundreds of families arrived as there were several divisions which included the children age group of boys and girls of 9 – 14 years of age Teen age years of 15-18 years of age Masters, and even veterans age group for either the 5 kilometer or 10 kilometer run The competition was fierce as the awards included trophies, medals, and special prizes for the bronze, silver, and gold positions!

The first at the starting blocks were the children's division for the 1,000 meter race The turnout was impressive being the first annual event as many families from the region woke up early to participate After this race was complete, the racers for the 5 kilometer run lined up and shot out of the starting line These particpants followed the guide on a scooter to wind them through the racing route The track weaved next to the Puerto Aventura marina, it took them across the draw bridge and back towards the golf course On the northern part of the route, a pleasant jog past the lagoon and the Mexican Caribbean beaches, and then back along the fairways to arrive back to the start/finish line A complete circle of the northern half of Puerto Aventuras

The race was a success as many participants, families, and athletes from the region joined together for a great Sunday of running

Bea Lozano

www.TOPmexicorealestate.com

(512)879-6546

Playa del Carmen-

What a show! Three nights of great music, great company, and an unique incredible stage (on the Mexican Caribbean Beach) in Playa del Carmen, Mexico People often ask my husband and I what is it like to live on the Mexican Caribbean….we often reply “we are lucky people”

The unique thing about Playa is the mix of people in the community…Italians, Argentinians, Americans, British, Canadians, French, Mexican, Cubans, Dutch, everyone is present it seems here in this small beach side town of Playa del CarmenThis allows for a unique atmosphere and allows for a growing number festivities such as the International Film festivals, Fashion shows, Jazz concerts, and of course the main amenity….the Caribbean Beaches!

The first day filled the Caribbean nights with the rhythms of Jazz on the beach and tunes floated all the way up toFifth Avenue The opening night blasted with the Mexican Jazz artist Jose Antonio Moran Mercado better known as Pepe Moran Following was the unique sound of the night, The Beaujean Project

Two young Mexican sisters with a unique duet sound and beautiful voices I am not sure the age of these artists but they are definitely younger than 25 years of age….much soul….I think the world will be hearing much more about this talent over the years

On Friday night the big international stars to take the stage were Earl Klugh and Saxist David Sanborn Earl Klugh is a Grammy winning artist with a record of most sales on Itunes and Amazon.com for 2008 He is a contemporary Jazzist and a magician on the acoustic guitar

First time performing in Mexico, world famous alto saxophone player David Sanborn made a deep impression on the Playa del Carmen crowd as his tunes had the entire beach crowd….awed Playa del Carmen Jazz festival is now being noted and credited as Mexico s and possibly Latin America s most famous Jazz fest Currently in it s 6th year, there is probably no other stage as unique as what this Mexican metropolitan community has to offer

The annual Jazz Fest goes for three nights The stage is placed right on the world famous mamitas beachThe concerts start at 7:00 pm, and people start arriving around 6 There is no entry charge, and people bring small folding chairs, or their beach towels In our group, we brought a picnic basket filled with chilled wine, beer, cheese, flavored meats, pieces of bread and what a couple of unforgettable nights Nothing like laying on the beach, looking at the Caribbean stars, and listening to live Jazzy tunes on stage

Bea Lozano

www.TOPmexicorealestate.com

(512) 879-6546

After a long week of working the Playa del Carmen Real Estate market, nothing sounds better than getting together with friends and family for some good food and spirits What better time than the week end to chill wine, throw some juicy meat on the grill, and enjoy the Caribbean ocean and company Wait… the propane gas tank is empty, where in Playa del Carmen can you fill up a propane gas tank for the barbeque

Did you know that in Playa del Carmen, off of Avenida Benito Juarez there is a refilling station This station is located way off to the west towards the jungle on the outskirts of townThis makes sense given that this is where they store hundreds of liters of propane gas and if any accidents were to occur, less injuries and damage would be inflicted So, if you are driving, go to the intersection of highway 307 with Avenida Benito Juarez Turn towards the jungle away from the beach Drive for approximately 2 or 2.5 miles until you see a baseball field off to your left, and then you will run into the Zeta Gas refill station You can take your tank, have it filled within 15 minutes and be back to the patio before your ice melts from your drink

Another convenient tip for your week end Playa del Carmen Condo party; door to door tank filling services Call up Zeta Gas a couple of days before They will send a truck to your condo or home, pick up your empty tank, come back the next day filled and ready for grill heating No worries, be happy!

Beatriz Lozano

www.TOPmexicorealestate.com

(512) 879-6546

Playa del Carmen-

This afternoon the AMPI Riviera Maya held a press conference to promote the Playa del Carmen, Tulum and Cozumel Real Estate market, as one of the most important property acquisition destinations in Mexico”After tourism, the Real Estate industry is the most important revenue generator for the state of Quintana Roo, and this is done without government support programs.” Stated Laura Zapata president of AMPI Riviera Maya during the meeting This Mexican sector has been growing substantialy over the past several years as more Mexican foreigners begin discovering that it is legal to buy oceanfront properties in Mexico and the cost savings that can be realized here in this country But along with the great deals that are available, investors and second home buyers must also manage the risks that exist with less regulations and real estate tools to help protect the Mexican foreigners.

PROFESSIONAL REAL ESTATE LICENSE IN MEXICO

Currently in Mexico, there are no requirements or regulations to guide real estate agents, brokers, or agencies But the national organization of realtors in Mexico, AMPI, has been working arduously over the past 5 years trying to introduce requirements and guidelines for the industry to help reduce the risks and further protect the consumers and investorsThis past September, the first national exam was introduced to the country inviting all aspiring Mexican realtors to study and partake in this strenuous 5 hour long test The test is the first step towards obtaining a license which would be equivalent to a univeristy degree in Mexican real estate The intention of the government is that in the future, this degree would be obtainableby studying a normal university degree at a three year college The second step of the current exam, involves a close and detailed evaluation of work experience relating to the real estate industry, education, work shops, diplomas, publications and studies realized and close evaluation of any federally approved certifications in this field

MEXICO REAL ESTATE EXAM

It is estimated that nearly 400 realtors throughout Mexico took this federal exam this past September of 2008 Here in the Yucatan Peninsula which includes Merida, Campeche, Cancun, the Riviera Maya and all territories of Quintana Roo had nearly 80 participants The exam was administered by a federally regulated and concensioned offices of (CENEVAL) Centro Nacional de Evaluacion para la Educacion Superior

The president of AMPI Riviera Maya during the press conference congratulated and recognized the dedication, efforts and achievements of a very small fraction of realtors throughout all of Mexico and throughout the entire peninsula who were able to pass the first step of this rigourous examination process Ms. Zapata congratulates four AMPI Riviera Maya members who were able to pass the exam with a certificate of achievement

Adriana Avalos

Pablo Diaz

Wilberth Gutierrez

and our very own TOP BLOGGER … THOMAS L LLOYD !!!

CONGRATULATIONS to each of these realtors and the best of luck for the next phase of the examination.

Bea Lozano

www.TOPmexicorealestate.com

(512)879-6546

Have you ever wondered how you would spend Halloween living in Mexico or how the Mexicans celebrate the day of the dead My husband and I took a day off from our Playa del Carmen real estate activities last friday to spend Halloween with our Canadian friends at the Xcaret water park I was very pleased at the event and our friends absorbed all of the singing, the story telling, the plays, and the Mexican traditions of honoring the dead ceremonies I was happy with the representation of the various traditions that the park displayed as there are many customs depending on the region of Mexico.

The first picture above for example are candy skulls These skulls are purchased with the name of a friend, family member, or co-worker printed upon the forehead You then prepare a short poem, describing in a humoruous manner the method or the way that such person will most likely pass away Mexicans tend to view death, they try to view this event or lighten the tragedy with humor and laughter

The calacas (skeletons) seen on the right, are normally dressed up in various methods Dressed as taxi cab drivers, as baseball players, as bankers in various activities and are also given as gifts to loved ones The most famous calaca, is LA CATRINA La Catrina, a female skeleton normally dressed in a pink dress, is death that lives amongst the living She will appear to the living, when death is very near She is very nicely dressed with jewelery to symbolize or to remind us that when you pass away, you will pass with none of your earthly items Also to remember, when La Catrina leaves you or you no longer see her, since she only lives with the living, it is most likely you have passed on to the other side.

Another Mexican tradition is the creation of the Altar Within homes, on the first of November, the people who have lost a loved one within the past year, will prepare this special shrine Normally you will see a picture of the recently deceased, and various favorite items of the person This is usually the favorite snacks, drinks, foods and even cigarettes and cigars On the night of the first, the ghost will find a path made from bright orange Mexican Marigold flowers leading from the street upto the house and into the room of the alterAt the Altar, the spirit will eat the soul of the food and then return to heaven The following day the living will have a large feast with the food that remains from the altar On your left, as we are in suba diving country, the people from Xcaret park paid tribute to the scuba divers of the Mexican Caribbean shores

In many parts of Mexico, during these holidays, people go to the graves of their loved ones to decorate, bring the favorite foods, celebrate and remember This tradition is most famous from the state of Morelia on the beautiful island of Pascauro Here in Xcaret, the tombs were one of the main attractions of the evening as hundreds of visitors both Mexicans and foreigners weaved through the grave yard appreciating the wonderfully decorated plots Their are many Mexican traditions and customs for the Day of the Dead week Some are a mix of the past from Spain, some from the Aztec influences and others even from the Mayan ancient civilazations In another post, I will share some of the beliefs and customs from the Mayan history Day of Dead.

Bea Lozano

www.TOPmexicorealestate.com

(512)879-6546

Last Saturday night, we took our kids to the Beach Not during the day, but we arrived during the evening A Mexico Beach somewhere between Tulum and Playa del Carmen A beautiful beach not well known, hardly any tourists know of its existence, but it is one of the most important beaches of Quintana Roo in regards to the Mexico Sea TurtlesDuring these dates, Turtle eggs begin hatching and a delicate life cycle begins.

The initiation of this period is celebrated by the people of Playa del Carmen, Tulum and the people from Xcaret ecological parks They invite the children of the region, to participte, to witness, and most important to learn and educate others of the fragile life that exists and shares this planet with us What better way to educate a child…and an adult… than with an outdoor theatre on the Mexican Caribbean Ocean!

We parked the car alongside the highway and walked towards a dirtroad hidden in the jungle and mangrovesSoon the lights of a bus started to near us arriving from the beach Full of excited young staff of the Xcaret park They invited us into their bus, and began an explanation to the kids that we would be going down onto the beach to witness a magical event that occurs once a year Today was a party to celebrate this occurence But, as what we should always do with mother nature, try to leave as little evidence as possible that you or your family were present Leave as little of an ecological footprint as possible.

One Flower was given to each person as they entered onto the beach We sat on a beach towel, a dark night as the clouds hid the Moon and most of the stars yet it made a nice dark backdrop for the event Zen music began lightly in the background against the waves pounding of the Mexican Caribbean Ocean Suddenly, 50 yards down the beach, Mother Nature appeared, dancing, slowly, and nearing to the invited witnessesShe was the host, speaking to the children, she was the story teller

“Nature has Guardians that live amongst us humans They are here to help the balance, to help the probabilities of survival and reproduction for the weak creatures that live on this planet Guardians such as Earth, the Guardian of the Winds, the Water Guardian, and the Guardian of the Fire.”

The actors appeared during her explanation with magnificant costumes and on stilts The interesting fact was how these wonderful actors were able to dance on the beach and on their stilts After the 4 Guardians danced, Mother Nature went on to introduce the sacred Mexico Sea Turtle 50 yards down the beach, again with the assistance of the dark shade cover from the clouds, appearing out of nowhere, a large SEA TURTLE the size of a Suburban Truck was crawling slowly towards the audience The gasps came from all the kids (and many adults) at the beautifully designed costume The Mexico Sea Turtle was lit up underneath and the light transparented through the fabrics, making a magical theatrical representation of this creature We later learned that it took approximately 7 actors to move this micro float around the stage

“I am so exhausted, I have swam from so far away over 100s of miles, I feel as if my interior is about to explode, I can`t go on much more” the voice of the female turtle whispered “Yet, something draws me to this place It feels like…home, I have been here before.” The children then witnessed how the dirt started flying as the huge turle begins digging a hole to bear her eggs With the music playing, the turtle then finishes laying, and then crawls towards the Caribbean water Mother nature says that the turtle is sad to leave her babies, because she knows that many will not survive their long journey, will not survive all the predators, and will not survive the dangerous waters But, when she gets to the water, she rejoices and has hope A beautiful message and our kids abosorbed it like spongesBack on the stage, the beach, about 12 eggs lit up in greenish colors the size of huge pillows were left glowing on the sand Little actors, the ages of 6 and 8 picked up the eggs which were dangling at the end of sticks, started dancing on the beach with Caribbean music After this dance, the lights on the eggs slowly flickered off one by oneBut as they flickered off, the lights of small turles began flickering on, also on the end of sticks Again the music very festive as the small actors ran around the dark beach with only the figures of small turtles bouncing in the darkness Soon the music began to slow down, and a adult actor dressed as a mix of a wild dog, wolf, lioncat appeared and started to chase the turtles Soon it was joined by another adult actor representing birds with large vicious claws and beak Finally, as mother nature explained “the worst enemy to the turtle that does most harm…Man” An actor in a over sized human puppet appeared on the beach to join the other two predators chasing the turtlesOur kids… wide eyed and sitting on my lap by then grabbing a hold of my hand

To the rescue, the four guardians who were standing in the four corners during the entire show, came back to the center stage The music picked up, and they began their dance amongst the turtles and the predators They saved the day as all three predators were chased off back into the jungle with the cheers of the children The small turtle lights than began moving towards the shore, their lights slowly flickered off representing their arrival to the beautiful and magical Caribbean OceanMother Nature finished her story by inviting all the children and adults to throw the flower that was given to them at the entrance, into the ocean in rememberence of the bravery of the small turtles who survive

The kids were then invited to see actual live baby turtles as the biologists had various eggs that were just hatched over the past week Many ready for this first stage of their beautiful, adventurous life in the Ocean Waters and shores of Mexico To become part of this society and to get involved in helping the education and communication of saving these and other species, please contact this wonderful Mexico organization www.florafaunaycultura.org

*There are seven living species of sea turtles in the world.

*Some of the largest sea turtles, measure upto six or seven feet (2 m) in length at maturity, and three to five feet (1 to 1.5 m) in width, weighing up to 1300 pounds (650 kg).

*The fact that most species return to nest at the locations where they were born seems to indicate an imprint of that location's magnetic features with the turtles.

Bea Lozano

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