How to buy in Xalapa Veracruz Mexico : Yup! You can own property in Mexico, and we are here with Real Estate Net Worth Xalapa to help make the process easy and understandable. We will accompany you step by step and introduce you to all the people and resources you need to buy your property with complete peace of mind.
Inside Mexico, you can buy property (ies) with fee simple ¨ his own name, as you would in the US or Canada. But Mexican law has special exceptions governing property (s) within 31 miles (50 Km) of the coast and within 62 miles of the border, an area known as the restricted area. Most of the properties shown on this site are located within this area.
After 1970, the Mexican government passed laws to permit foreigners, as private individuals, to buy property (ies) in the restricted area through a trust.
This trust, initially established for a term of 50 years and renewable for an additional 50 years, granted, the beneficiary, any property rights. You may use, modify, rent or sell your property. In the event of your death, the property passes to the beneficiary you have named without the necessity for probate. The current cost of establishing a trust is about $ 3,000 dollars, and the fees to be paid annually after the second year is about $ 500 dollars. The initial charge of $ 3,000 dollars covers government fees for the Trust, bank fees constituting the Trust and TWO YEARS maintenance fees. Your next payment will be due two years after the closing date. The charges vary from bank to bank, and the annual maintenance fee depends on the value of the property.
MEXICAN CORPORATIONS AND VISAS
Yes you intend to use the property for business, it is easy to form a Mexican corporation, and in most cases it is not necessary to have a Mexican partner. The property can be purchased by the corporation and 100% owned. The costs involved in establishing a corporation range from $ 1.800 to 3.000 dollars. The Mexican government currently requires monthly tax filings, so plan to pay a Mexican accountant about $ 50 to $ 100 USD per month. It is also important that the principal officers of the corporation apply for and obtain FM3 Visas in the Department of Immigration. This process is not difficult – you can do it yourself – or we can recommend legal assistance.
INSPECTIONS AND REPAIRS TO HOUSE OR DEPARTAMENT
Here in Mexico, the properties are sold “As is, where they are”. The vendors generally do not accept repairs.
We do our best to present the properties accurately, but based on the information given to us by the vendors. Real Estate Net Worth Xalapa are not responsible for any discrepancy or representing the seller, please consult an engineer, accountant, lawyer or professional competent to verify the information.
No inspection companies in Mexico as there are in the US, and no access is required by the seller. In general, as our foundations are built on solid rock and no earthquakes in this region, defects in a property will be immediately evident. The roofs are generally of cement, and again, leaks will be apparent. Unimproved older homes need new wiring and new plumbing likely to adapt to modern standards. You should know, too, that the characteristics of electricity and plumbing in houses advertized as remodeled may not meet American standards, because there are few inspections performed by any authority, and expertise of local electricians and plumbers may vary. Happy to provide a list of plumbers, electricians, etc. from which you can choose, they are responsible for their work!
In Mexico, the normal practice is for your real estate attorney to prepare a contract (Promise of Sale) which must be signed by you and the seller, with specific details of the transaction. This is done AFTER it has been confirmed that the title is free of liens or any other legal issue that prevented the sale of this property. At this point, an agreed amount is paid directly to the seller to secure the sale. If they default for any reason, they have to refund your money and pay a penalty. Mexican law protects you under this legal agreement. If you can not be in Mexico and want us to represent you in signing legal documents, the promise of sale and / or Closing, you should leave a limited special Power of Attorney and us are your representant. The cost of preparing this papers in Mexico is between $ 1700 and $ 2200 dollar, and can save lot of time and stress, Real Estate Net Worth Xalapa does charge represent you in these aspects. If the seller agrees, we can as an alternative retain their money in the trust account in the US. Mexican lawyers do not provide this service. Our fees are 6% US at closing, plus any fees the bank to receive or send money to the account. Funding is not generally available in Mexico, although in some cases a buyer can provide a short-term fix. This should be considered cautiously, since the title is not transferred until the final payment has been made.
The final agreement of buy-sale will be conducted by a notary public, an authority respected special recognition from the government to act on real estate transactions. It is the responsibility of the notary review the deeds and title to property, make sure that no existing liens, assist the bank in building their trust, and then to formalize the final contract of sale, draft the new deed, collect and pay appropriate taxes and record the transfer as required by law.
It is customary in Mexico that most of the closing costs to be paid by the buyer. The costs will be based on the appraised value of property which may be lower than the current price. There is a transfer tax of 2% plus attorney fees which usually amount to 2-3% of the appraised value of the property. In short, you should consider the cost of training their trust or corporation.
Real estate commissions are usually paid by the seller, unless you have been retained as Buyer’s Broker. In most cases commissions are 6% of the sale price.
It can take as little as a week to form a corporation and close a transaction. The establishment of a Trust takes two to three weeks, since a permit must be obtained. If the property and trust, this process can be expedited and costs less than about $ 1,800.00 dollars to replace your name on the bank records compared with $ 3,000 to the establishment of a new trust. Anyway, there may be exceptions, particularly in the case of historical or older properties, which may take longer to close. When documents are very old and title has not recently been transferred, may be inconsistencies which have to be legally remedied before the bank to obtain a permit. Where inheritance is involved, the courts move very slowly and the system is awkward. In these exceptional cases, it is difficult to predict how long can take close.
Slowly, with patience and attention to detail, the historic beauty of Xalapa Veracruz Mexico are being restored by people like you. The colonial or modern properties available here offer comfort, peace, health, Latin charm and a humid temperate climate location at a very reasonable price. These properties are truly unique!
INMOBILIARIA NET WORTH
FRACC. VALES DE CRISTAL
TEL NACIONAL: 01 228-8100219
PHONE USA TO MEXICO: 52 228-8100219