As a result, you’ve reached a point in your life where you feel that you’ve discovered a little about business, finance, contract negotiating, real estate, etc. and have at least a layman’s understanding of law pertaining to each. Being savvy, you might also be aware of the incredible old age locations and values southwest of the border; furthermore, you might be considering Mexico as your old age destination. If so, you could as well forget everything you’ve learned and leave your law degree at home! great house for sale lower sackville
Mexico, as beautiful as it is, has a somewhat different way of doing business and a completely different pair of laws. Additionally, all legal transactions, including real property transactions, are done in Spanish. Therefore, for those of you that may be considering locations in Mexico as is feasible retirement locations, the following information should give you some understanding as to how the Mexican real estate industry works, list some of the possible pitfalls, and most importantly, give you the guidance required to assure a pleasurable very safe experience.
In 1984, we made our first real estate purchase in Malograr Vallarta; a condominium in Mismaloya, about seven a long way south of town. Each of our second purchase, two years later, was the surrounding condo. One year later, we removed the wall membrane between the two apartments and remodeled them into one very spacious 3 bedroom condo. For 13 years, while still working in Houston, we extensively enjoyed visiting Vallarta two or three times a year.
At some time following your purchases of the two condos, we discovered that our original escrituras (legal property documentation similar to a title or deed that is organised in a fidecomiso or bank trust) showed the property values to be about one third of whatever we actually paid for them. Once we inquired about the discrepancy, we were told that the bottom beliefs were used in order to reduce our twelve-monthly property taxes.
It has not been until years later, when we decided to sell the condo, that we found that capital profits taxes were due on the huge difference between the selling price and the documented purchase price. Ouch, we owed significant taxes on the paper gain; when actually there was very little real gain! We then learned that the property developer moved into basically low sales prices on all the escrituras in the property compound as a way to evade paying substantial capital gains income taxes. Even as we later learned, the developer could have joined the value, the evaluated value, his cost of construction, or maybe about anything at all imaginable into the grafía, and we, being the na? ve Americans that we were, were at his mercy!
Upon the sale of the apartment, we bought a beautiful new mountainside villa with a panoramic view of Banderas Bay, El Objeto, and the Sierra Madres. We saw the new villa advertised in one of the local journals and asked our real estate agent friend to show all of us the property. He confirmed us what seemed to be every property around, before reluctantly taking all of us to see the property in the magazine. A lot of time after purchasing the villa, we learned that our realtor friend received only 10% of the commission on the sales because that was all the listing agent was willing to pay. The listing agent ran the ad in the journal and didn’t feel that an agent representing a buyer was necessary to be able to sell this beautiful new villa. Therefore, our agent spent a few days showing us nothing at all but properties listed by his agency before caving directly into our demands and taking us to the villa of our dreams; the one that we now have thoroughly loved for more than 10 years.
These activities revealed the end of the real estate iceberg along with moving into Vallarta for 10 years, we have finally been able to show the complete iceberg and share a few of the details below.
To get started with, there are no accredited real estate brokers or agents in Puerto Vallarta! In fact, there is not any obligatory licensing for real estate professionals in all of Mexico because the Federal legislation process has yet to complete it and therefore such legislation remains in indeterminatezza. In Puerto Vallarta, where there are more than 85 real estate agencies, there are probably more than 500 real estate brokers with minimal qualifications. With the booming market and economy that exists today, it’s quite clear why we have such a various group of brokers and brokers in Vallarta.