Mexico Real Estate

The Playa del Carmen real estate market's AMPI association elects a new board for the coming term of 2009 – 2011. The AMPI Riviera Maya chapter spent the morning casting and counting votes to choose a new president and committees. AMPI, with over 4,000 members nationwide is represented in all regions of the Mexico real estate market with just over 50 chapters The association has amongst its goals the continuous training of its members, the encouragement of following a guide of regulations and ethics for members and various other objectives

The new board of directors were chosen as follows;

President Wilberth Gutierrez

Secretary Enriqo Dozza

Treasurer Ulla Meihbohm

Committe of Honor and Justice Teresa Gutierrez Thomas Lloyd Jorge Penkoff

Committee of Vigilance Enrique Dominguez Ruben Rios Maricarmen Domani

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

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

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

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

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

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

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

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

The Playa del Carmen real estate market has had some of the world's most interesting growth rates and fascinating samples of regional trends During the 1990's the little village was known as the pier town where you grabbed the ferry to get to Cozumel

It was not the destination, but more the community on the road towards the destination This soon changed though, people began to notice its beaches and the community.European backpackers began frequenting the area and the 5th avenue began to make a name for itself. Hotels and investors began to notice quite quickly the potential of the area Hotel room inventories grew from 10,000 units up to 15,000 – 20,000 Today, the Riviera Maya hotels have more rooms than Cancun With the tremendous growth in various Playa del Carmen industries, the populaton boom began and the real estate market began taking off

Playa del Carmen over the past five years, has been some of Mexico's strongest appreciation markets with returns in the double digits Many investors would purchase Mexico pre construction condo units and sell them 8 or 12 months later with 30% or more appreciation It was a boom all over the coast being witnessed during the first years of the 2000 decade.In the middle of this decade, the comments “I should have bought that property 2 years ago” were quite common These observations from the buying market in 2006-2008 were also accompanied by a decline on the appreciation rates Each year, as the price per square meter crept upwards, the rate of appreciation began losing some steam

2008 and summer of 2009 brought a unique occurence to this regional marketplace.The world economic recession has brought its effects onto the Playa del Carmen real estate market and in the Mexico real estate industry The appreciation rates have flattened and have begun to drop Large amounts NO,but very interesting amounts Some people see this as a half empty glass of water but the current scenario does bring about some fantastic opportunities for the smart investor In fact, there are some quite interesting investment alternatives that could be reviewed as an even healthier market for investment purposes than than the investment environment originally witnessed during the beginning of the years 2000 Let me explain

At the beginning of the Great Appreciation Boom of Playa del Carmen, there were still many risks in the market, there was the risk of new developers, risk of the reaction of the buying market, risk of unknown area development. Today, investors have first hand, regional history data The market absorption and projections are based more on history facts rather than the guessing game or correlating future results based on similar marketplaces in other regions Risks within investments, if purchasing finished products,have been reduced by the knowledge of purchasing a finished product versus the unknown results investing within a new construction Reduction of risks by knowing which neighborhoods were successfully developed and which neighborhoods have not been accepted by the buyers Also, the investor is able to measure how continuous of a demand the Playa del Carmen has reacted over several years of construction and absorption cycles These first hand facts give you and your consultant better data to manage your investments and increase your probabilities of strong returns

The probabilities of continued long term growth are strong in favor of the real estate investor when purchasing properties in the region of Playa del Carmen Obviously there is a short term downturn But that is what this entire article is discussing This fall of 2009 is presenting some incredible and unique real estate opportunities that are not common and which allows many people the “Second Chance ” to buy into the market and ride the wave of appreciation. Contact us here at Lloyd's Real Estate to learn more on how to buy real estate in Mexico and how to apply some strategies when acquiring land in Mexico

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

The Cozumel real estate market is effected by several factors which include amongst many others, hotel occupancy rates, the ecological environment of the island, and the cruise boats that visit the piers from this Mexican Caribbean islandBelow are short updates on activities this past month that are effecting the island but also the Mexico real estate market as a whole.

During the Easter vacations, the hotel occupancy rates arrived to nearly 80% Currently the island has approximately 3,522 units in inventory for the hotel industry People comment that the world economic situation has reduced the normal rates but also pointed out that with the gain of the dollar against the peso, this has regained opportunities given the fact that tourists have more pesos to spend It is estimated that each hotel room guest spends approximately $100 usd while a cruise ship tourist spends nearly $80 usd

Another update is in regards to the project of the recuperation of the beaches in Cancun, Playa del Carmen and the Cozumel Island The mayor of the municipality met withthe governor this month to advise that the island is not against the project of restoration of the beaches, but is searching for an alternative area where they plan to extract the sands The current project outlines an area on the norther part of Cozumel where they plan to dig up fresh sand The project calls for the restoration of 7 million cubic meters of sand to be sucked up from the ocean floor off of the island and blown back to the beaches throughout the cities of Quintana Roo

The news that is on front page throughout many parts of the world is the virus outbreak called the swine flu Here on the island, and in the entire state of Quintana Roo, there have been no reports of anyone having been infected The federal government has been aggressive on their response and their actions to prevent further spread of this flu and have closed all schools throughout the entire country until May 6th Cruise ships coming to Cozumel have also been postponed for the immediate future until the federal Secretary of Health gives the green flag They expect the ports to be open if all goes well within 7 – 14 days At the same time, as the government has taken correct steps in the prevention of the spread of the virus, the local, state, and federal government are already preparing action plans and marketing campaigns to be initiated to support the re surge of the important tourist industries

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

A Mexico notary public is an attorney that specializes in real property law and is specifically licensed by the state to legally transfer Mexico real estate property from one party to another. In my previous post in our Mexico real estate blog, I talked about the how to buy real estate in Yucatan One of the most important roles during the transaction are that of the notaries The number of Mexico notary public licenses is limited by the state. An attorney who wishes to become a Mexico notary must first attend classes and then pass a board. It is a demanding process and many do not make the cut.

For those few attorneys that do pass the test and are eligible to become a practicing Mexico notary public, they enter a waiting list for the next available notary license from the state. The wait is usually many years. Frequently, a law firm will have one or two junior partners who have completed the notario board exam and can assume the position of notario for the firm. A Mexico notary public license is extremely valuable and dearly guarded by the firms that have them.

The notary public is ultimately responsible to ensure that a clean, merchantable title is passed from the Seller to the Buyer, that the property taxes, transfer fees/taxes and any Mexico capital gains taxes are paid at or prior to closing. They are also responsible to properly record the transaction in their personal books and with the office of the Catastro (Mexico Public Registry). Should a notary public fail to discharge their responsibilities in an honest, fair and transparent manner, they could lose their notary license.

Choosing a notary public is usually not difficult and your Mexico real estate agent will be able to suggest a good notary that is versed in transferring titles to foreign buyers. You may also choose to work with an attorney who is not actually a notary but is connected to a notary. Frequently, these attorneys have passed their board to become a notary and are waiting their turn. In the meantime, they are skilled at checking titles, ordering Fideicomisos and setting up corporations.

If you are setting up a corporation, it is a good idea to find an attorney/Mexico notary public that understands the mechanisms of the proper corporation to best execute your business plan and objectives. Having your corporation construed and worded properly the first time will save money, time and frustration.

Notary Public fees will vary from one firm to another. Many fees are based upon the amount of the operation (appraised value of the property). Taxes and transfer fees are based upon this appraised value.

Frequently, the appraised value of the property is much less than the actual purchase price. If you wish to record your deal at the actual purchase price, that is fine, but be prepared to pay higher closing costs and, perhaps, you will be expected to pay the additional capital gains tax that the Seller will incur due to the buyer's desire to close the deal at the actual purchase price instead of the appraised value.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Not quite ready for that Mexico retirement But if you re planning your future in a sunny place, now is the time to get the ball rolling. Join the multitude of buyers doing just that.

Mexico Condo & Pre-construction Opportunities

In the last few years the variety of options for second homes and retirement homes in the Cancun real estate region and the Riviera Maya area has increased to enormous proportions. This boom in the Cancun condo market and the pre-construction opportunities provides options for different lifestyles and tastes. And with more options available, developers are becoming more competitive, offering more amenities and better finishings.

This competitive market has also opened the door for more flexible payment plans. Over the past few years, most developers throughtout the Mexico real estate industry required an initial down payment, maybe 25-30% and then the balance paid in equal installments over the construction period. This scenario made it difficult (and undesirable) for most buyers.

Finally some savvy developers are offering more accessible plans, with an initial down payment and the balance upon delivery and title. With this type of payment plan, buyers can apply for long term financing. There are now many banks and Mexico mortgage companies offering financing for US and Canadian citizens.

And now with the credit problems in the US, many developers are rolling back prices to spur sales. Since there are lots of options available for buyers, they are starting to realize they need to be competitive with pricing. Because of the devaluation of the peso, many are switching their pricing schedules to pesos, making it even more attractive for US buyers. With the currently high Mexico exchange rates, buyers can get more for their dollars in this market.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Puerto Vallarta real estate always offers many, diverse activities for residents of the city. One of the activities which foreign visitors and residents alike enjoy is caring for the natural beauty of the area – one of Puerto Vallarta real estate’s most important attractions.  During the following months there will be a focus on protecting newly born sea turtles.

This month the nesting season for the Olive Ridley Turtle – the most common sea turtle in the Puerto Vallarta area – begins; the season lasts until November.  The natural nesting cycle of the turtles includes abandoning the eggs for the 50 to 60 day incubation period, when the eggs hatch, and the newly-born turtles instinctively head for the sea.  While it is a natural part of the process that many are taken by predators, including seagulls, it is important to ensure that a large number arrive safely to the sea, since these turtles are a threatened species.

In Puerto Vallarta, there are various organizations devoted to the protection of these turtles, which provide opportunities for volunteers to take newly born sea turtles to the edge of the water and help increase their chances of survival.  The programs not only help prevent loss due to natural predators, but also make sure that swimming and other potentially disruptive sea activities are put on hold during the time that the turtles go to sea.  The volunteers are organized, with a line drawn at the edge of the ocean so they don’t accidentally step on the turtles others are releasing.

This month volunteers from Puerto Vallarta itself, as well as from numerous other countries, such as Korea, Germany, Spain, France, Belgium, the United States, Israel and Finland, have begun to arrive to beaches in Puerto Vallarta and the surrounding area to help in this important process.

Just as nature provides a key element in the attractiveness of Puerto Vallarta real estate, residents and visitors alike do their part in protecting this threatened species, thus ensuring that its existence continues to add to Puerto Vallarta’s beauty.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Puerto Vallarta is a large multifaceted city.  For this reason, Puerto Vallarta real estate offers a large variety of activities and events, appealing to just about anybody.  Puerto Vallarta real estate is continuously benefited by infrastructure improvement and investments in the city tourist industry, and the next few years will see further investments for the upcoming Pan-American Games.

Puerto Vallarta has officially been named a secondary host for the 2011 Pan-American Games in Guadalajara.  This role was made official on June 25^th with the signing of a contract between the municipal government and the committee in charge of the games (COPAG), establishing the responsibilities of both parties.

Puerto Vallarta will host the sail, triathlon, open water swimming and beach volleyball competitions.  In order to host the final activity, a new beach volleyball stadium, with capacity for 5000 spectators, will be opened in Puerto Vallarta.  The new stadium will be located in the Agustín Flores Contreras sports complex.  While facilities for the other competitions are already in place in Puerto Vallarta’s well established water-sport facilities, Puerto Vallarta will also provide the infrastructure for the celebrations of each event.

In the case of open-water swimming a route which runs along the waterfront will be used, so the general public will be able to have a panoramic view of the competition.  The triathlon will be held in the marina area. The sailing competition requires only open sea. 

Other secondary host cities for games are Boca Laguna, Chapala, which will host waterskiing, Tapalpa, which will host mountain biking, Lagos de Moreno, which will host baseball, and Ciudad Guzmán, which will host rowing and canoeing.

After Guadalajara, Puerto Vallarta will be the municipality most benefited by the 2011 Pan-American Games.  The city will receive 300 athletes, plus staff and representatives; just as importantly, the city will continue to receive national and international attention and promotion through organizations such as Global Sport – part of the International Olympic Committee – which will be selling 3 day visit packages for Puerto Vallarta.  The promotion and improvements will add to the already thriving water-sports culture and tourist industry that Puerto Vallarta real estate offers to residents and potential buyers.  Also, anyone water-sports fan will enjoy the benefit of watching some of the finest international athletes compete in these events.

The agreement which formalized the commitment was signed by various dignitaries, including Puerto Vallarta’s Mayor and Javier Bravo, the president of COPAG, Alfonso Petersen.  “There is a lot of work to be done,” said the mayor of Guadalajara; “Puerto Vallarta will host four competitions, and each one has special necessities with regard to investment and infrastructure,” adding that Guadalajara intended to support Puerto Vallarta in these responsibilities.

The 2011 Pan-American Games will continue to add  to an already-thriving water-sport culture, and acknowledge the city with this well-deserved role.  Property buyers interested in a beachfront city should consider the benefits of Puerto Vallarta real estate.  Besides the 2011 Pan-American Games, Puerto Vallarta real estate offers a full range of beachfront events and activities. For more information about life in Puerto Vallarta.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

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

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

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

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

Mexico Escrow Services

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

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

Mexico Broker

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

Mexico Developer

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

The Mexico Property owner

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

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

This summer I have been seeing news stories and large amount of articles of the dangers and risks of coming to Mexico to visit or to vacation The majority of the stories have spoken of the entire country of Mexico in general, and unfortunately did not speak of regions or neighborhoods where the incidences were occurring whether it was some neighborhood of Mexico City, or some region of the state of Baja California

I also noted the misfortuneate timing of these news events being in the summer time which is basicallyeffecting Mexico's tourist high season and which is also effecting my area of work, the Mexico real estate industryLately though, I have starting to notice some articles that are becoming aware of the spilling over effects and have started to correct or attempt to report the data with a little more investigation and detail My question, “Is this too little too late”

This morning as I read through various articles I came across one that caught my attention inside of the Wall Street JournalThis article reported that many of the Mexican resort cities that are more than 1,300 miles away from the violent clashes, are witnessing cancellations and having their businesses effectedThe article is more complete by reporting more details so travellers are not making travelling and cancellation decisions based on partial informationThe link to this article http://online.wsj.com/article/SB123931839488506787.html#articleTabs=article

One of the quotes which I found interesting,

” Despite the travel alert, “we are not advising people not to go to Mexico,” says Heide Bronke Fulton, a State Department spokeswoman. She adds that the main areas of concern are cities and towns near the U.S. border. Travel alerts, which can caution against everything from cyclone season to terrorism threats, are far less severe than the State Department's “warnings,” in place for countries like Iraq and Sudan, which essentially advise against traveling to a country altogether. ”

After speaking with several visitors down here in Mexico this past week I realized the importance of passing this information and these types of articles and updates through channels such as Mexico real estate blogs and other mediums on the Internet The visitors from up north advised that the news being heard on the television and many news sources is quite harsh “Very bad and negative People and my family have come to me and asked me to cancel my trips down to Mexico I had to pull out a map and show them where I was going and where the problem areas were occurring” Even the Mexico tourism department has become very alarmed at the generalization of the reports up north and their effect on their economy They have published a map on the internet to help visitors understand the locations http://mexico-update.com/index.jsp

Unfortunately, the messages of pinpointing locations and distances may have missed the high season period The Mexico tourist department is rushing trying to correct this mishap It is April, a good portion of the high season has already been incorrectly effectedThe year for tourism in Mexico was starting strong, but now several hotels and businesses are now concerned in the cancellations that have occurredLets hope that this other message continues to be transmitted effectively to help recover some of the drop in reservations and travel plans for the rest of the year.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

A couple of weeks ago, we had an interesting question be sent to our panel of experts The seller of a property wrote to ask,

Q. “What happens when I make some profit on the sale of Mexico real estate, we paid the Mexico capital gains tax, do we still need to pay taxes on the capital Gains in my home country too

A. Linda Neil from Linda Neil Properties in the La Paz real estate region advises the following “If you have property in a Mexican bank trust it is necessary to file a form annually with the US IRS and, yes, the profits or losses from the sale of your Mexican property must be declared on your US return. It is important, however, to obtain the tax declaration made in Mexico to be presented with your US return to obtain a credit or deduction for the Mexican tax paid.”

A. Ivan Castillo regional director and practicing Mexico real estate lawyer from Stewart Title answers” I m not an expert on taxes out of Mexico, nevertheless I don t think there is double taxation. If you pay Capital Gains in M xico and it is properly documented, the receipts can be used in the US in order to avoid paying taxes again.”

A. Cozumel Capital broker/owner Rita Sheese who works in the Cozumel real estate market outlines the following about these taxes “If a property in Mexico is sold, the capital gain realized by the seller (whatever nationality) is subject to Mexican capital gains tax. Then, the American seller when declaring that income in the states, would also declare the taxes that were already paid on this capital gain in Mexico Formal tax treaties exist between the US and Mexico to avoid the taxpayer paying double tribute, and so what you have already paid in Mexico will essentially be deductable from what is due in terms of US capital gains tax.

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

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

THE MEXICO REAL ESTATE BUYING PROCESS PART II (Fideicomiso or FOMC)

This is a continuation of my previous post- Buying in The Yucatan Real Estate Market

While touring Yucatan properties with your agent, you will want to engage in a conversation about Fideicomisos and FOMC (Foreign Owned Mexican Corporations) to determine which is the best vehicle for you to utilize to hold title. Both have advantages and disadvantages.

The Fideicomiso (bank trust) is a trust agreement that you establish with a bank to hold title of the property with you (you and the bank are both named in the title documents). The bank has a fiduciary responsibility to represent your interest in the property.

Advantages of the Fideicomiso:

* The Fideicomiso gives you the rights and the vehicle to hold the property in perpetuity. It is a 50-year trust agreement that is renewable every 50 years by you or your heirs.

* You may also transfer your rights in the Fideicomiso to another foreign buyer

* You may rent, sell, remodel or dismantle the improvements on the property.

* Your heirs may inherit the rights to the Fideicomiso, effectively by-passing probate, should you depart without a proper will

* There are tax advantages pertaining to Mexico capital gains taxes when you sell

* The Fideicomiso is easy to maintain by paying the annual fee to the bank

If the title papers, property dimensions and corresponding documentation are not in perfect agreement, the bank will not issue the Fideicomiso. A rectification of the property measurements will be required We will discuss this in a moment.

The main disadvantage of the Fideicomiso is that it is restricted to a property of NO MORE THAN 2000 square meters.

Note: There are exceptions and you can request a permiso for acquiring a Fideicomiso that allows for a property larger than 2000 square meters. This is a complicated process requiring an investment plan, time line, inspections, architectural renderings, business plan and plenty of governmental red tape. The exception is designed for an investor that plans to make a significant investment in the property.

Another disadvantage of the Fideicomiso is that it is limited to one specific property. Sometimes you can put two adjoining properties into the same Fideicomiso. But, generally speaking, the Fideicomiso is only designed for an individual property.

The FOMC (Foreign Owned Mexican Corporation) is a vehicle that allows foreigners to open a business and work in Mexico. The corporation is a Mexican entity, and as such, has the right to hold title to real estate. An attorney or Mexico notario can help to set up your corporation It is important to know what your goals are in respect to the property, business and type of Mexico real estate investment prior to setting up the corporation.

Creating the corporation requires a minimum of two individuals (stockholders), of any nationality, that are at least 18 years of age. One of the stockholders will be required to be the managing partner. The managing partner will be required to acquire and maintain a Mexico FM-3 visa. The visa must be renewed every year. Additionally, the corporation is required to make monthly reports to HACIENDA (the Mexican Department of the Treasury) reporting income and expenditures. The reporting needs to be done by a certified accountant.

Advantages of the FOMC:

* Allows for the purchase of properties larger than 2000 square meters

* No limit to the number of properties it may own

* Allows for one or more of the stockholders to legally live and work in Mexico year round.

Disadvantages of the FOMC:

* The corporation requires more hands on attention than the Fideicomiso.

* Does not have the ability to avoid capital gains taxes when it sells property

* Requires a managing partner with an FM-3 visa

* Monthly reporting of financial activity is required through a certified accountant.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

For most Americans and Canadians who own a Lake Chapala Real Estate, the late summer and fall seasons are the favorite time to spend in their Chapala or Ajijic homes to enjoy the higher lake levels, and to enjoy the refreshing climate brought by the rainy season.  During the rainy season, warm sunny days are balanced by rainy late afternoons, which cool the temperatures.

One of Lake Chapala Real Estate's main attraction is, of course, the lake itself, offering boating activity to the residents of area, and a beautiful view to those living in the towns of Chapala and Ajijic.  While the water level was somewhat low in the spring, the good news is that due to recent rainfall, Lake Chapala has maintained the benchmark of 95.83 cm for four straight days, including the 39 cm which it has recovered since June.

Since June 27, when the rainy season in the Lake Chapala Real Estate area started, the lake has been steadily recovering the water to reach its current level. The 39 cm in the water level represent 433 million cubic meters of water volume in the lake.
Lake Chapala has a total capacity of five thousand 664 million cubic meters and is at 71.73% of total capacity, according to the National Water Commission (CONAGUA).

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

We pleased to announce the Cozumel Real Estate area's messenger of peace,  "Zamna" arrived in Santander, Spain, on the afternoon of Saturday, October 3.  The ship was received with a joyous celebration of about 4500 residents, attended by city officials, thousands of flags waving Peace and especially enjoyed the presence of Angel Garcia Rodriguez, winner of the "Prince of Asturias Award for Peace", who immediately associated himself with the actions taken in Cozumel to promote Peace and announced his interest in the organizing First International Congress for Peace in the  Cozumel Real Estate area.

The ship arrived at 5:10 PM, and on the dock of Calderon, Santander, fireworks were heard to greet the trimaran that had sailed across the Atlantic to reach the old world, with the single mission of bringing a message of Peace through the voice of a child from Cozumel, Juan Pablo Tec Chim, who joined the crew, which did not stop ringing the ship's bell to announce his arrival to the homeland of the ship's captain, Vital Alsar. 

Led by the Mayor of Santander, Iñigo de la Serna, officials, businessmen and the media  gathered in the pier to be part of this story that began in Veracruz, Mexico, and made its way pas the Yucatan Real Estate area, through Cozumel, to Miami Beach Florida, to New York and now finally Santander, Spain; so far the ship has visited three ports in the U.S. and Europe.  Meanwhile the spectators listened to the notes of the song composed by the Sergio Esquivel of Yucatan Real Estate area especially for this journey, "The Child, the Sea, Peace and Cozumel." 

As soon as "Zamna" landed, the signs of joy were evident and the crew was warmly received by all people, who showed their appreciation fro the commendable work undertaken by the crew who had traveled more than 4 thousand 600 nautical miles during the 70 days that the voyage has lasted since it was launched in Alvarado, Veracruz. 

During the welcoming ceremony Iñigo de la Serna brought attention to Cozumel in a special way, acknowledging its effort for peace through actions undertaken by the Mayor, Juan Carlos Gonzalez Hernandez, to appoint the various educational and government institutions in promoting the peace and ensure that Santander and Cozumel will continuously promote harmony. 

The mayor said that the city unconditionally supports the actions undertaken by the only island that has been named "Island of Peace" in the world to further promote the value, and he asked his counterparts in the other Spanish ports where "Zamna" will arrive to join this project. 

Meanwhile, Vital Alsaro Ramirez, visibly moved by being in his native Santander, expressed his affection for Cozumel and the Mayan culture that motivated him to make this dream real. The operator of the vessel , Manuel Diaz Rubio, excited by the acceptance which "the child, the sea, peace and Cozumel" has received, referred to this island as "a people of peace," who through their actions and their Peace Committee is an example for Mexico and the world.

At the given time Juan Pablo, who now has the responsibility of being the messenger of peace in all the ports of Spain where the boat arrives, said: "Thanks to Santander, Spain, on behalf of the Cozumel, Mexico, the Island of Peace Island; we give thanks for this affectionate greeting. We will take the message of peace to children all over the world." 

Once the welcome ceremony was completed, the crowd that attended this event approached  12 years old from Cozumel - ambassador of Peace from Mexico for all the world - to talk to him, to have them take photographs to remember this special day, which was really emotional for those who were witnesses of this episode of the journey for peace. 

The community of Santander showed signs of admiration for the global messenger of peace and offered the child congratulations and good wishes on his journey errand, and asked him to take their congratulations to the people of Cozumel for this undertaking, in which the residents of Santander who came to greet "Zamna" participated.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

We celebrated a milestone in the history of Playa del Carmen Real Estate.  35 years ago, the state of Quintana Roo was created in order to facilitate the area's growth towards being one of the world's top tourist and real estate destinations.  35 years later, the Playa del Carmen Real Estate industry, along with the rest of the state, is moving ahead in a clear direction, and remains firm and strong despite adversity.

Although the Playa del Carmen Real Estate boom occurred between 2002 and 2005, the creation of the State of Quintana Roo was an important step towards bringing more visitors, and later international investment to turn a little fishing village into prime real estate destination.

As the state reached 35 years, Quintana Roo and Playa del Carmen remain positioned as a privileged destination with great natural attractions, economic diversity. With a high level of tourism, the state has made progress with a comprehensive and sustainable development.

As part of the celebration of 35 years of existence as a state, various founding state representatives were interviewed about the progress they have seen in Playa del Carmen Quintana Roo. Mario Ramirez Canul said that Quintana Roo, at its 35^th anniversary, continues to show steady and rapid growth as a real estate and tourist destination because of its major attractions, which have earned themselves a worldwide reputation and have generated a large number of jobs and foreign investment for Mexico Real Estate.

Likewise, he indicated that at 35 years, the political moments and world events which have shaped and affected this state must be considered in order to keep moving ahead and continue steering the state in a firm and definite direction.

For his part, Abraham Martinez Ross said Quintana Roo remains a very relaxed state, where peace and harmony prevail among the citizens and their customs and roots have allowed people to maintain a high sense of humanity.

He commented that the state has experienced rapid growth in real estate and accelerated development in healthcare, agriculture, social infrastructure and services which did not exist in the past; this, too, has allowed it to become a leading entity in tourism.

Sebastian Star Pool, explained that Quintana Roo has been characterized by its different regions. Cancun in the north, for example, represents the state's potential, the Playa del Carmen Real Estate area in the center represents its identity and in the south, Chetumal is the political capital. As a result of the distinct characterizations, the state has made giant and firm strides forward.

He noted that Quintana Roo maintains permanent and decisive progress.  Thanks to the people's unity has always come out ahead from any adversity.

Gilberto Pastrano Novelo, said that 35 years after its creation, Quintana Roo has established itself as a strong state, and additionally it has developed an impressive real estate industry and a comprehensive system of health, public works and justice that have allowed it to be privileged on a national level.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Puerto Vallarta Real Estate slowed down considerably because of the global recession, then by the lull in tourism triggered by the swine flu travel advisory.  Although the global economic situation continues, Puerto Vallarta´s resilient charm and beauty are bringing the tourists back again.  This is good news for Puerto Vallarta Real Estate, showing that the city’s key industry is resilient and will continue to be strong.

Among the good signs are that hotel occupancy in Puerto Vallarta is rising weekly.  This week has seen a 5.7% increase over the last week.  Several factors have played a role in this.  While tourism has been on an increase throughout Mexico, specific initiatives for this area have also had an impact.

One example of these initiatives is the “Jalisco en Vivo” concert which was held in Puerto Vallarta.  The concert, which was planned with the primary goal of rebuilding tourism, attracted a local, national and international audience.  Among other factors, this concert helped the effort to slow down and eventually reverse the drop off of tourism; the week before the concert had seen a 14.3% decrease in hotel occupancy, while the weak of the concert felt less of an impact, with an 8.6% decrease.  Now, the during the third week after the event, hotel occupancy has increased 5.7%.

There is hope that the initial success of the concert will be repeated on as the concert is aired on T.V. throughout Mexico, Latin America, parts of the U.S. and some places in Europe. The program received strong ratings on Mexican T.V., and the concert should continue to draw tourists’ attention – both Mexican and international - to Puerto Vallarta.

Another program, this time on the state level, is giving free guided tours and excursions from Guadalajara.  These program includes 40 destinations of the state’s 11 main tourist destinations (including Puerto Vallarta), offering 120 excursions for more than 5000 tourists.  The trips include transportation and guided tours.  The program will be promoted in over 60 information booths, and has seen an investment of about 1,200,000 pesos.  Although the focus of this program is local tourism, the presence of more tourists will support tourist based businesses in areas entirely dependent on this industry, helping to boost the industry while international tourism continues to rise.

These and other factors are helping tourism in Puerto Vallarta, the city’s main industry, move upward again, and quickly.  Those interested in Puerto Vallarta Real Estate will see this as a good sign, as we wait for the global recession to turn around.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

We had a client close on some lots in Tulum last week A new project called Aldea Zama This is an exciting new neighborhood in Tulum because of its' location and of the region

Many of you readers are quite familiar with Cancun and how this city was basically a project that was conceptually designed by the federal organization called FONATUR Success; the city today is nearing 1,000,000 in population and along with being the number one tourist destination, it is also one of Mexico real estate markets best successes.Then south of Cancun, a little fishing village called Playa del Carmen started to grab the attention of many visitors from all over the world Many Europeans, South Americans began to discover this little stepping stone village towards their main destination of the island of Cozumel Playa has had a growth rate that has surpassed Cancun and in the past 7 years has been cited as the fastest growing community in Latin America Some people say they missed the boat on an investment opportunity for Playa..but hold on to your horses, now there is Tulum Mexico. Keep a close investment eye on this spot!

Mexico Beaches are some of the finest in the world and the Tulum beach is definitely one of its' top 5 Population growth potential Some officials are stating and preparing for some serious inflow of people again from Europe, Canada, US, South American and from the Mexican nationals In the new project of Aldea Zama, in the commercial section, several business owners who have current successful businesses on 5th avenue in Playa del Carmen are taking title to their properties in the new “downtown” development of Tulum “Build it, and they will come”.It appears that in Aldea Zama, various Italian business owners appear to have seen the movie and believe in its' quote And from their success on 5th avenue, they have a good knack of identifying these tourist opportunities.The point is that a large quantity of these foreign business men have already reserved their commercial corners and areas within this project Do they know something we should

Back to the Legal status of the properties in Tulum, I was very happy to have my good friend and clients receive their legal title to the property Tulum is absolutely gorgeous withthe beaches, and the opportunity is definitely in the air when you travel to this up and coming little village But, invest with caution, don't over risk with properties that are not properly titled and a promise that such legal rights will come shortly If you live out of country, the amount of money or extra points on return you think you can earn,may very quickly be eaten up by having to pay lawyer's fees to sort through a un-secured title mess and nightmare Surround yourself with Mexico real estate experts and people with experience on representing the buyer When my client received his legal title in the Tulum lot, this was worth celebration I am very bullish about Tulum and am happy to say I have another client now who is in the front edge of the wave that will come.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Below is an interview by an international property magazine, VENTANA, talking with our newest TOP Mexico agents & Brokers member from the Ixtapa real estate market, Tim Sullivan Tim is the owner of TICAR Real Estate company in Ixtapa-Zihuatanejo Guerrero.This beautiful oceanfront city sits on the Pacific Ocean, north of Acapulco and south of Puerto Vallarta.Tim arrived to Mexico back in 1987 and has been here ever since.In 1994, after having worked various years with local brokers and developers, Tim along with his beautiful wife of 15 years, Carmen, started their brokerage company Ticar, S.A. Mr. Sullivan will be joining the panel at the Mexico Real Estate Blog, TOPmexicorealestate.com where he will be sharing his expertise and development updates in this regional market of Mexico

Why did you choose this market in Ixtapa Zihuatanejo as your destination in Mexico

In actuality, I do believe that Ixtapa-Zihuatanejo chose me. Back in the autumn of 1987 circumstances conspired to allow my then partner, Linda Fox, and I to take a six-month long sabbatical and travel to Zihuatanejo where Linda had lived sporadically since the early 1970 s I had never been to Mexico before and had only some erroneous preconceived notions of what Mexico was all about. My concept of Mexico I d harvested from westerns and Saturday morning serials As soon as the plane landed at the Zihuatanejo airport all of those old stereotypes went right into the waste can.

What sets Ixtapa Zihuatanejo apart from other real estate locations in Mexico such as Puerto Vallarta or Los Cabos

The Ixtapa-Zihuatanejo market has a unique flavor which distinguishes it from the other destinations in Mexico whether they be beach resorts or colonial towns. The distinction is analogous to one of this area s most famous dishes;tiritas , which is a recipe calling for strips of locally caught fish marinated in lime juice, onions and sliced Serrano chile. This simpleplatillo is exquisitely satisfying and uniquely particular to the Ixtapa-Zihuatanejo area.

How large is the expatriate community here How many Canadian and American expats are living here

The use of the termexpatriate is one which I tend not to promote given that some of its synonyms areexile andoutcast . Certainly there are some of those but the vast majority of the 3,000 or so yearround and seasonal inhabitants are average citizens of their respective home nations who have chosen Ixtapa-Zihuatanejo and the surrounding areas as their home or home away from home.

How do expats assimilate to Ixtapa-Zihuatanejo s Mexican society and culture

By and large the non-Mexican visitors and residents have immersed themselves in the culture and rhythms of the Ixtapa-Zihuatanejo experience. There is any number of charitable organizations such as Ni os Adelante and S.O.S Bahia, S.A. to name just two, which receive bountiful donations of both time and money from the foreign and local communities alike. Social events are equally polycultural as lassos between individuals create expanding webs of interdependency.

Has real estate grown here over the years If so, what has detoned it

In the twenty plus years that I have lived in this paradise, Ixtapa-Zihuatanejo has experienced a slow, steady growth both in the permanent population as well as in the number of short-and long-term vacationers. Over the course of this steady expansion there have been two very strong booms: 1991-1995; and, 2005-2008. In each of these boom periods the prime stimulus for the growth in the specific area of Ixtapa-Zihuatanejo was the real value investors found in the local real estate in comparison with other destinations in Mexico where rapidly rising prices had out paced the demand. In contrast, in Ixtapa Zihuatanejo supply had always lagged behind a increasing demand.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Buying Real Estate on the Yucatan Peninsula

Today in most of the large communities across the peninsula there are Yucatan real estate agents that provide tailored services to foreigners wishing to purchase property in a safe and secure manner. These services include: bilingual agents and administrative staff, standardized contracts, secure earnest money and Mexico escrow accounts, legal assistance, title insurance, funds wiring, monetary exchange banking, closing statements and continual brokerage services. A good real estate firm will build solid relationships with their clients, helping them with a range of issues that will confront the foreign buyer wishing to do business and/or live in Yucat n.

Additionally, a good real estate firm will have good connections for the best, multi-lingual attorneys, accountants, contractors, architects, etc You can meet many of these qualified brokers right here in our web site at TOP mexico real estate blog.

After selecting a Yucatan real estate agent, the buyer needs to check the various real estate websites (see the web site Mexico Real Estate) and choose the properties that he/she would like to tour. The agent will then need to contact the various owners and agents to schedule appointments.

It is a good idea to try and keep your selections to fewer than 6-8 properties a day. Trying to tackle more will prove to be frustrating and confusing. If you are looking for property on the beach, or in the countryside (ranches, haciendas or quintas), the driving times can be considerable. If you are searching for homes in Merida, keep in mind that traffic in M rida can be daunting and parking is often at a premium.

Invest a few days to do a thorough search of the properties that fall within your parameters. It will not take long for a prudent buyer to establish a sense of value and identify the best buys available. Your agent should be able to help you to know if a property is over-priced or a good buy.

Some agents may charge a small daily fee taking you around to see property. Their time has value. Many foreign buyers are here on exploratory trips, gathering information and getting a feel for the area prior to investing. Many do not buy.

It is only fair to compensate the agent for his/her time and gasoline. Most agents will refund the fee at closing. A knowledgeable agent is worth the fee. They can provide a ton of invaluable information.

After you have identified the property you wish to make an offer upon, your agent will draw up a standardized Mexico Offer to Buy Contract. The offer will be presented to the Seller and they will accept, decline or counter the offer. Negotiating on purchase price, closing date, inclusions and other details is common.

If your offer is accepted and everything is signed, it is time to provide the earnest money deposit and meet with your Notario/Attorney.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

A good friend and client of mine has asked for an update on the Playa del Carmen, Riviera Maya, and Cancun beach recovery update If you recall we wrote about the Beach recovery project back in  September within our Mexico Real Estate blog Today, this is the latest update that I have been able to find:

There are basically six companies that have bought into the bidding process to see which of these companies wins the nod These companies have finished their” on site” visits to the Playa del Carmen, Cozumel, and Cancun beaches Another update is that where before the quotes were to be listed in US dollars, the government has requested a quote in pesos given the Mexico exchange rate variances

The sand to be utilized for blowing up onto the beaches will be drenched from a large sand bank located on or near to the Cozumel island So, at this time, the project continues forward We are not on the same time line, but the phase of physical visits from the bidding companies has completed, and now those companies are sharpening their pencils to see which group wins the contract to begin their services.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Your success as a Mexico Land lord will require that you are a good Landlord and reduce potential costly mistakes that many first time Land lords can make I have written several posts regarding Mexico real estate rental property, and how to best administer such properties, click here to see my previous articles on Rental Properties.

Based on my experiences, I've compiled a list of mistakes often made by land lords.

• Errors on the lease agreement that cause uncertainty in expectations
• Not enforcing rent collections as defined in the lease agreement. If you allow your Tenant to pay at random, your setting a precedence to continue to allow this type of behavior
• Not knowing the specific laws relating to Tenant-Landlord relationships
• Poor response to Maintenance and Service requests
• Not practicing good customer service
• Not conducting a written, detailed move in inspection with their Tenant
• Not maintaining a professional relationship with their Tenant

In most cases, Landlord and Tenant will have some communication, especially if there is not a Property Manager involved. However, it's easy to defy the balance of a Tenant-Landlord relationship if mistakes are not kept to a minimum.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Last week, I began discussing the process of how to purchase your Mexico dream home

Please click here to see this first post Mexico Real Estate Purchasing Process

and go here Mexico Real Estate Agents to learn more on this subject.

Rule Number Three:Mexico Real Estate Closing Costs

(Fideicomiso) Closing Costs:

Closing costs will range from 4% to 30% (yes, 30%!) of the total cost of your Mexico property. The higher the price of the property, the lower the percentage of total costs for closing. This is because certain expenses for permits in Mexico,and certificates are fixed, regardless of the value of the property. Costs of transfer include title search, transfer taxes, bank fees, government permits and Mexico notary public fees. Your seller may assist in some of these; especially those related to title search and insurance. Be sure to get a written estimate so that you will not have unwelcome surprises at the date of transfer of title! While your real estate agent may know the procedure, his or her specialty is to identify the correct property for you and to negotiate advantageous terms for the purchase. The technicalities of the transfer; negotiations for permits, registrations and so forth are generally more objectively and thoroughly handled by a neutral third party who does not have a financial interest in the transaction.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Mexico Real Estate Investments have been extremely profitable in this country for the past number of years But the overall consensus with our panel has been “surround yourself with Mexico real estate experts” to avoid unsuspected pitfalls Stewart Title has a team of lawyers that assist non-Mexican buyers, investors, and developers who are coming down in record numbers to purchase properties and develop in this growing Real Estate market

A question was asked a few days ago regarding a property purchase.

Mexico Real Estate Investment QUESTION

“Can you give us an estimate on the amount that would be due on Mexico Acquisition Taxes for a pre construction condo purchase

I entered into a contract  for a unit at Mexico Pre construction Condo “X”. They required a 30% down payment with a final payment of 70% at close.

My contract is all in US dollars How do I calculate the amount that should be captured on the deed and how will this affect the amount payable for the Acquisition Taxes In 2007 the Mexico exchange rate was approximately 10 pesos per dollar and in 2009 we are approximately 15 pesos per dollar

Mexico Real Estate InvestmentANSWER

Even though the purchase price was set in US Dollars, the deed by which the property is transferred will mention Pesos. Since 30% of the purchase price was paid previously at an exchange rate of 10.00 Pesos p/dollar and 70% will be paid at 15.00 p/dollar, the most practical way is to determine the amount paid in Pesos at the time of each payment:

Example:

Purchase Price in Dollars in July 2007 = USD$ 10,000.00

30% Down payment at 10.00 Pesos per dollar paid on July 2007= $30,000.00 Pesos.

70% at closing at 15:00 Pesos per dollar paid on July 2009 = $105,000.00 Pesos

Purchase Price in Pesos to be declared in the deed: $135,000.00 Pesos

It s important that the purchase price calculated is well determined, since it could affect the parties when calculating closing costs. The seller could pay more Mexico Capital Gains Taxes or the purchaser can pay more transfer of property tax and deed registration at the Mexico Public Registry if the figures are not registered correctly.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Mexico can be an exciting place to live for those who are retiring to Mexico, for those who are working from home on a computer link with their company, for those who are looking for a vacation home or an outstanding investment… above all, for those who dream of a better quality of life! Home…the word represents security and comfort for the majority All too often the word, when used in conjunction with a purchase of property in Mexico creates stress, worry and, at times has been associated with financial loss This needn't be the case Procedures in searching titles and transferring property are similar to those of the United States and Canada The buyer of a house, condominium or lot in Mexico must ask the same questions, and should receive answers similar to those received when buying a property elsewhere

Rule Number One: SelectA Mexico Real Estate Agent

In considering the purchase of something so important as a home it is necessary to have the right people representing the buyer and his interests This can be accomplished by first selecting the general area where you think you'd like to live Through NAFTA agreements, the Association of Mexican Real Estate Professionals (AMPI), is now affiliated with the U.S. National Association of Realtors (NAR), the Canadian Real Estate Association (CREA), and the International Real Estate Association (FIABCI) These important national real estate organizations are working to achieve standardization of real estate practices and procedures throughout the world The company you select to represent you in your Mexico property purchase procedure should be a member of AMPI Not only is the AMPI member company required to operate under a higher standard of care, and to adhere to a code of ethics, but also it may have access to an increasing number of the properties available for sale through computerized data bases Once the area is selected and a list of the AMPI companies operating there have been obtained – interview the owners and operators of the companies Ask for references, ask for a professional resume Interview carefully the persons that most impress you the person you select should be familiar with the area, with basic real estate principles…and should impress you with his or her honesty and drive to find what YOU are looking for Once you have found the person you feel comfortable with, stick with him or her and let him do his job The sales person who knows you aren't shopping around will generally work harder to find exactly what you are looking for Remember, it is your money and your commitement Do not be pressured by someone who is charming but who does not listen carefully enough to undertand YOUR special needs

Rule Number Two: Examine the Mexico Neighborhood

Once you have selected the right Mexico community, an agent with who you feel comfortable, AND a possible property, check out the neighborhood Is it new Is it old What will it look like in ten years Are highways or other development projects planned for the future Where are the schools, churches, shopping facilities Are there homeowner fees for maintenance of common areas If so, how much are they and when are they paid Are all the utilities in and paid for What does the developer have left to do What building restrictions are there Are there covenants and conditions registered for the usage of the land In many parts of Mexico there is no enforcement of a master plan or building codes This can affect the changing face of the neighborhood you have selected.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Many new Landlords with Mexico Real Estate rentals are unsure what their lease agreement (Contrato de Arrendamiento) really says and if they are truly protected. As with any Mexico legal document, the lease agreement is binding and should be reviewed by all parties carefully.

You will see from my other posts written about rental properties, click here Mexico Real Estate blog, it is important to get correct Mexican legal counsel when working with agreements and contracts Executed leases should be in Spanish with a complimetary English version available.

Key Points on a Mexico Lease Agreement:

• Names of all parties to the lease
• Lease dates
• Rental amount
• Location in which rent is to be paid
• Rent due date
• Late charges
• Security deposit amount
• How maintenance and repairs are to be handled
• Move out notice requirements
• Details about Landlord access to the property
• Utilities and Services
• Condition of the property
• Rules and regulations
• Pets
• Landlord remedies

Although many Mexico Managment Companies use different leases, some are drafted by an Attorney or Notario. Whatever version you or your Property Manager uses, make sure that you have a complete understanding of the document and how it will legally affect you and your Tenant.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Yucat n has been the attention of many international real estate investor in recent years With the many Haciendas, the old colonial architecture, and the increasing amounts of non-Mexican buyers, where can people begin their process into buying property here in paradise We asked Mitch Keenan, a Yucatan Real Estate broker, very well known throughout the entire Yucatan Peninsula, and with many years of on hand experience in Mexico Real Estate to help us out with this post and blog.

This post is about real estate in the states of Yucat n and Quintana Roo The author, Mitchell Jay Keenan,CRS is the general director and the operating broker for Mexico International Real Estate.

Keenan has been living and selling real estate in Yucat n for over 10 years. He has been a licensed broker in the USA since the 1980's. He holds a GRI (Graduate Realtor Institute) and a CRS (Certified Residential Specialist) certifications from The National Association of Realtors (NAR). He currently lives on his Quinta between M rida and Progreso with his partner and their four companions; Wazer, Lover, Lucky and Miri.

Yucatan Real Estate Brief History

Understanding the dynamics of the real estate market in Mexico requires a reflection on the socio-economic conditions that have developed in Mexico over the last several decades. The large middle class that has emerged in the last 30 years has provided for a more robust market. Additionally, with the growing foreign interest in living and investing in Mexico, the market is becoming more dynamic and secure for investment and ownership.

Historically, Mexico was a country of basically two large economic groups; the rich and the poor. The poor rarely owned real estate and the rich tended to subdivide what real estate they had and pass it on to their heirs.

The current real estate market (where two previously unknown parties come together to buy/sell real estate) is still a relatively new business in many regions of Mexico. This is the reason why, in most of Mexico, there is no MLS, no real estate licensing requirements for agents, no governmental oversight, limited institutional financing, and few large, organized real estate companies or real estate professional organizations.

The exceptions to this current scenario are Mexico City, Monterrey, Guadalajara, and many of the coastal resort areas, where there are limited MLS's, large brokerage firms, and functional professional organizations like AMPI.

It is important to remember that Yucat n has been like an “anonymous region” separated from Mexico for decades. Yucatecos tend to think of themselves as Yucatecans first and Mexicans second. Rules, regulations and new businesses practices have tended to evolve here more slowly than in other regions of Mexico.

Mexico Real Estate Purchasing Process

Historically, in Yucat n, when two individuals come together in an agreement to buy/sell real estate, the parties have utilized a “promise to buy/sell” real estate agreement. The agreement is typically drawn up by the Buyer's notario.

Note: the buyer is responsible for paying the notario and closing costs. The seller is responsible for paying their capital gains taxes.

Upon signing, the buyer gives the seller a deposit to hold as earnest money to seal the deal. In return, the seller provides the notario with current and notarized escrituras (title documents), cedulas (tax statements), planos (lot plan), personal data, and corresponding information.

This “promesa de compra/venta” is a vehicle still popularly used in Yucat n, and it is not unusual for a seller that is not represented by a real estate agent to require this contract with the understanding that the seller will hold the earnest money deposit.

Should the buyer fail to buy, at no fault of the seller, the buyer will forfeit the deposit. Should the seller for no fault of the buyer, refuse to sell, there is a penalty clause in the contract penalizing the seller to return the amount of the original deposit and pay a penalty equal to the amount of the deposit. If the seller does not return the deposit and pay the penalty, the buyer will have a very strong case for filing a lien against the property and pursuing legal action against the seller.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

By now you should have determined if you are hiring a Property Manager for your Mexico Real Estate rental. You've interviewed and have chosen a Property Manager that you are confident with. The Mexico Property Manager that you've chosen has sent you the Property Management Agreement (PMA) and you notice a clause that states that you must deposit funds into a Trust Account with the Property Manager and you wonder

what this sum of money is for…

Many Property Management Companies require a specific amount of money deposited into what's referred to as a Trust Account. This amount can be as little as $100 or $1000 and will vary by Management Companies. Most companies I've had experience with require $250-$500.

Mexico Property Management Trust Accounts

Trust accounts can be complicated but the primary details that you should know are:

• Funds are the property of someone other than the Property Manager
• Funds in a trust account cannot be comingled with personal funds of a Property Manager
• Funds in a trust account are used for property repairs, taxes, insurance, utilities, etc.
• Funds in a trust account can earn interest which can sometimes be kept by the Property Manager
• When a Property Manager pays expenses from an Owner's trust account, there must be enough funds in the account to cover the expenses.
• The Property Management Company will/should provide a detailed accounting report outlining how funds have been disbursed.

Trust accounting is not difficult and experienced Mexico Property Management Companies know how to handle other people's money with care and consideration. However, it is your responsibility to insure you check your statements carefully and ask questions if you notice anything that you are unsure about.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

Article 27 of the Constitution of the Republic of Mexico prohibits foreign ownership of real property located within 30 miles of any coastline or 60 miles of either border This is referred to as the Mexico restricted zone

Owning within the Mexico Restricted Zone

In 1973, recognizing that many Americans would enjoy the rights of ownership, and bring needed dollars to the country, President Echeverria approved the bank trust, Mexico fideicomiso, form of ownership which is available to non-Mexicans This regulation was further expanded in the Foreign Investment Law of 1989.

Mexico Properties located within the restricted zone, which includes the entire Baja Peninsula, may be acquired by a foreigner through a Mexican bank trust naming the buyer of the property as the beneficiary of the trust Naked title is placed in the name of the bank selected by the buyer, as his trustee The bank administers the property according to the instructions of the buyer/beneficiary The buyer/beneficiary has full ownership rights: he may build on the property, tear down existing buildings, modify them, rent, lease or sell at anytime conforming only to the general laws of the country established for all persons

Term of a Mexico Bank Trust

The term of the trust is fifty years and can be renewed for additional fifty year periods, after which it must be transferred to “one entitled to hold property” in Mexico In other words, title to the property may rest in one beneficiary indefinitely, provided that it is renewed within the terms established by the law

Procedure and Costs

The procedure for establishing the fideicomiso, the bank trust, is as follows: a permit must be obtained from the Secretary of Foreign Relations which includes a description of the property to be placed in trust, the use for which it is intended, and personal data on each of the beneficiaries Once granted the bank draws up the trust document which is recorded in the municipality where the property is located.

The costs for the permit to establish and register the trust are currently about $1,700 US and Mexico bank trust annual fees are generally $400.00 to $700.00 per annum there are additional closing costs in Mexico Real Estate, however, an it is wise to request a written estimate prior to beginning the transfer process.

* The costs mentioned above may require updating given the date of writing of this article

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

All too often citizens of the United States, Canada and other countries ASSUME that property purchases are carried out automatically in Mexico in a manner similar to that of their native countries The first law of property purchase in Mexico is DON`T ASSUME anything! Purchasing property is NOT the same as in other parts of the world

Would You Purchase a Property in Your Hometown Which Is Not Registered in the Local Public Registry or Land Titles Office

Would you hand a complete stranger, without an office or an established business entity, a check for perhaps hundreds of thousands of dollars to pay for a property Why do so many foreigners do this when they purchase in Mexico Many do not realize that Mexico has a complex and complete legal system and a court system that is as well organized as any that exists in the United States, Canada or Europe It is essential that you have an idea of how the system works and what to expect when considering a purchase of property in Mexico

Don't Leave Your Brain at the Border!

Article 27 of the Mexican Constitution prohibits ownership by a foreign individual or business entity of real property (real estate) within the “restricted” zone which is an strip of approximately 30 miles from any coastline and 60 miles from any border Recognizing the demand by foreigners for ownership of property and recognizing the importance of making desirable properties available to foreigners for potential positive impact on the economy, the Mexican government implemented a series of Foreign Investment Laws beginning in 1973 The law was modified in 1989 and again in December 1993, to incorporate the provisions of the NAFTA treaty passed in late 1993

For those who are acquiring property for residential usage, the law requires that title to the property in the restricted zone be transferred to a Mexican bank, as trustee, in the establishment of a trust (fideicomiso) in which the foreigner is the beneficiary The bank is the titleholder of the real property and the foreigner is the owner of the rights of usage of the property The bank owns the real property rights and the beneficiary owns the personal rights of usage Ownership of these personal rights is evidenced through a deed prepared by a Mexican Notary Public and signed by a representative of the trustee bank

Currently the term for a trust is fifty years The Foreign Investment Law of 1989 provides for renewal by filing an application Multiple renewals are permitted under the law By requesting extensions every fifty years, a property may be controlled by a family or business entity for generations For those foreign individuals or companies buying property in the interior of the country, not in the restricted zone, no bank trust is required but authorization from the Secretary of Foreign Relations must be obtained and ownership must be registered in the National Foreign Investment Registry located in Mexico City, as well as in the municipality where the property is located

Avoid Mexico Taxes and Extra Costs. Leave the Mexico Deed in the Seller's Name: This is Wrong!

Until the buyer is formally named as the owner in fee simple or in the bank trust in a public document before a Mexican Notary Public, title to the rights in the property remain with the persons named in the previous property deed Their signatures are required to transfer title If the buyer fails to obtain his or her own deed he/she will be required to obtain the titleholder's signature before a sale and transfer to another buyer This can be costly, frustrating, dangerous and time consuming

The Importance of Mexico Registration of the Deed for Beneficial Rights.

The Mexico purchase/sale document signed by buyer and seller is generally legally valid between the parties to a transaction It most likely contains the description of the property, the price to be paid to the seller, and any other special terms and conditions It WILL NOT, however, provide valid notice to third parties unless it is recorded in the Public Registry Office of the municipality in which the property is located Mexico's land registry system functions in much the same manner as the Public Registry offices in Podunk, North Dakota, Los Angeles, California, Ottawa, Canada or places in between

many foreigners purchasing property in Mexico do not understand the importance of registration of their interest in property They believe that it should be left in the name of the property developer, in the Master Trust, or in the name of the previous holder of title What if the developer goes bankrupt What if the corporation and its principals, disappear Who can sign as the representative of the property Who then owns the property What happens if an unscrupulous seller sells the property to someone else While title is in the name of the seller, it is HIS/HER asset; she may mortgage it, he may sell it again, it may be attached in satisfaction of a judgment, she may die without a will

Unless the Deed for the rights of the Beneficiary has been Recorded, there may not be a remedy for the purchaser who neglected to obtain a registered deed…his or her interest and investment, may be lost

To obtain the deed an appraisal, a property tax certificate, and a no-liens certificate must be obtained Notarized bank instructions must also be obtained if property is in the “restricted” zone Seller's capital gains tax and Buyer's acquisition tax must be paid The deed transferring rights to the buyer must be registered and stamped by both the tax office and the public registry If this process is not complete, the buyer is not fully protected The buyer's ultimate protection is registration in the Public Registry office record, NOT the Notary Public or the trustee bank!

Financed Properties in Mexico

When property is sold with a down payment and the balance to be paid over a term of years, many sellers prefer to hold title to the rights in their name and transfer title to their rights only upon receipt of payment in full Meanwhile, however, the seller may die, may disappear, may bo bankrupt…again risky situations for the buyer the prudent buyer will insist upon a transfer of title and registration of a mortgage or pledge in which he gives his rights in the property as security for payment of the remaining purchase price

In the event of default by the buyer, the seller must conduct a proceeding similar to a judicial foreclosure in the United States and Canada It is as troublesome as a foreclosure in any country in the world but notably more problematical The registered title and recorded pledge or mortgage provides the buyer a greater comfort level in his investment The lender also enjoys protection in having his loan recorded and will have an established legal proceeding to follow in the event of default by the buyer.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.

It s been my experience that many people, especially those new to Mexico rental investments, believe that property management is easy. The perceived tasks of a property manager is to collect the rent, deposit the rent then wait until the next month to start the process over again. Sounds like little work. Why in the world should you pay for professional Mexico property management services

Regardless if you have one Mexico rental investment or an entire portfolio, property management is a very hands on business. There are many more details in the everydayness of just collecting rent; details that demand a lot of your time and resources

Mexico Property Management Activities

Details will include:

Giving the Mexico Tenant access to the property at move in

Showing the Tenant how each item works in the property

Addressing any maintenance issues they may experience

Pool and lawn maintenance

Tenant move outs

Cleaning the property

Although every Mexico Real Estate property will have a different list of needs, your Tenant should be viewed as your customer. You need a professional that can cater to your customer and resolve any issues that may arise. After all, the customer ultimately dictates if your Mexico investment property will be profitable or a disaster. A property manager will be the front line person representing you to the customer. Without the customer, you do not have rent revenue and without rent revenue, you are stuck funding the investment yourself.

Questions to Ask a Mexico Property Management Company

When interviewing property management companies, here are a few questions to ask:

What are their fees and when is it paid

How will they handle Tenant issues such as repair requests

What process do they go through to collect rent or what happens if the Tenant does not pay

Will they market the property for rent How

Do they screen the prospective Tenant How

Do they handle all legal contracts between Landlord and Tenant

Do they facilitate any repairs with a contractor Are those contractors licensed in their respective field

What are their hours of operation

What is their accounting method and what reports will they send to you regarding the property

When do they disburse rental funds to you

Who holds the security deposit from the Tenant

What amount of reserve will be required

At what point will they contact you on maintenance or Tenant issues

How often do they inspect the property

Regardless of how many questions you ask, a Mexico Property Manager is your contractor and you must have a comfort level with them. Look for solid credentials, get recommendations and references and make sure they have a good reputation within the community. When searching for a property manager, do your due diligence and pick the one that you feel will be the greatest fit for you and your property.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Region:  Playa del Carmen Real Estate  Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment.  He has been living, investing, and working in Mexico for over 15 years.  A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK     "Our experience at work protecting your interests"  (512) 879-6546.