Time Share Sales Mexico

Use a buyer agent when purchasing real estate in Mexico

So, you've reached a point in your life where you think you've learned a bit about the company, negotiating the financing contract, real estate, etc. and have at least a layman's knowledge of law relating to each. Being aware that you may be aware of the incredible retirement locations and values south of the border, again, you might even consider Mexico as a retirement destination. If so, you might as well forget everything you've learned and leave your law degree at home!

Mexico, as beautiful or she has a somewhat different way of doing business and a completely different set of laws. In addition, all corporate operations, including real estate transactions are done in Spanish. Therefore, for those of you who are considering locations in Mexico as a retirement destinations possible, the following information should give you an overview of how the Mexican real estate industry works, list some of pitfalls, and most importantly, give you the advice necessary to ensure a pleasant and safe experience.

In 1984, we did our first real estate purchase in Puerto Vallarta, a condominium in Mismaloya, about seven miles south of the city. Our second purchase, two years later, was the adjacent condo. A year later, we removed the wall between the two condos and remodeled into a three spacious condo. For thirteen years, while still working in Houston, we have enjoyed visiting Vallarta two or three times a year.

At some point after purchasing two condos, we have noticed that our original escritura (legal property documents similar to a title or deed that is held in a Bank Trust or fidecomiso) showed property values to about a third of what we actually paid for them. When we asked about the discrepancy, we were told that the lowest values were used to reduce our annual property taxes.

Only several years later, when we decided to sell the condo that we have learned that capital gains were due to the huge difference between the sale price and the full purchase price. Ouch, we had substantial taxes on a gain of paper, if in fact there was very little real gain! We then learned that the condo developer entered the extremely low price on all sales in the escritura condo complex in order to evade paying substantial capital gains. As we learned later, the developer could have entered the selling price, the estimated value, the cost of construction, or nearly anything imaginable in the escritura, and we Americans are naive as we were, were at his thank you!

When selling the condo, we bought a villa in beautiful new mountainside with a panoramic view of Banderas Bay, El Centro, and the Sierra Madres. We saw the new villa advertised in one local magazines and asked our realtor friend to show us the property. He showed us what appeared to be each property in the city, before we turn reluctantly to see the villa in the magazine. Shortly after buying the villa, we learned that our friend realtor received only 10% of the commission on the sale because it's all the listing agent was willing to pay. The listing agent ran the ad in the magazine and did not think of an agent representing a buyer was required to sell this beautiful new villa. Therefore, our agent spent few days shows us nothing other than properties for sale by its agency, before yielding to our demands and lead us to the house of our dreams, one we have enjoyed over a decade.

These experiments have revealed the tip of the iceberg of the real estate and after having lived here for ten years, we've finally been able to expose the iceberg together and share some details below.

For starters, there is no licensed brokers or real estate agents in Mexico! In fact, it is not compulsory licensing for real estate agents in all of Mexico because the federal legislative process has yet to accomplish, and so this legislation remains in limbo. In Puerto Vallarta where there are more than 80 real estate agencies, there are probably more than 500 real estate agents with minimum qualifications. With the booming real estate market and the economy that exists today is quite obvious why we have a diverse group of agents and brokers in Vallarta.

To have some continuity from one agent to a voluntary association for personal property are in various regions of Mexico. Asociación Mexicana de Profesionales Inmobiliarios CA, known as AMPI, is very active in Vallarta with membership of about 50 of the 80 estate agents in Vallarta. Although membership in AMPI is not mandatory and does not affect the capacity of agents representing buyers or sellers, it is considered to be the standard bearer for the list of agents in the region.

A second state real association, mainly consisting Mexican agencies based in the area of Puerto Vallarta is Asociacion de Profesionales Inmobiliarios Vallarta AC, known as APIVAC.

These associations schedule periodic conferences, educational programs, and hold various meetings where they try to keep their members and the public current on activities in the region as well as changes in Mexican law as it relates to real estate. They have codes of ethics and they are trying to establish sets uniform policies and operating procedures, some written, others understood but not documented. They provide staff and real estate, where members voluntarily undertake to abide by the rules of their organizations and codes of ethics while trying to operate with some degree of continuity and professionalism. For sure, these associations are better than nothing, but still not to be confused with associations like the National Association of Realtors or NAR in the United States. Disclosure dual agency, each agency, full disclosure, confidentiality, theoretical knowledge and opinion, tacit knowledge, fiduciary duty, loyalty and vicarious liability are concepts Foreigners in the majority of estate agents in Mexico. Consequently, misleading or inaccurate statements often made by many agents can save the buyer and seller in difficult situations intolerable Mexico.

Although AMPI and NAR have a working relationship, an example of the differences between AMPI and NAR is that NAR provides its member organizations to the standard listing forms by state, forms for pre-qualification, escrow account and deposit forms, standard forms of purchase agreement, letters of intent, etc. Vallarta, there are no such forms provided by AMPI or APIVAC. Each agency Real estate has its own list or form uses a form provided by a private outside publisher, which clearly illustrates that the listing agent receive 100% the commission on the sale of the property. In addition, NAR has written and enforceable guidelines regarding the treatment of fees and commission sharing between Agents selling and buying. Although there are guidelines for Mexico real estate commissions, they are still flexible, and some able to negotiate with the seller. The listing agent can then negotiate the division of the Commission with the agent of the buyer.

All Other forms vary from agent to agent and are not necessarily written in the best interest of the buyer. In addition, most forms and contracts for North Americans are in English, but Spanish is the only document that has any legal standing in Mexico. Therefore, regardless of what you read in English, Spanish-speaking lawyer should always represent you with your agent.

Another major difference between the Mexican associations and NAR has to do with the Multiple Listing Service or MLS. In the States, the MLS is controlled and monitored by NAR and is available to all agents NAR. Some Mexican cities, including Vallarta, there is an MLS, but it is not controlled by AMPI or APIVAC. Instead, it is privately owned and managed by a publisher local and is available for property searching the public without charge. AMPI members are able to list their properties on the MLS Vallarta, with the general public as well as other members AMPI APIVAC and have access to ads.

Once you understand the workings of the real estate industry in PV, you need to learn more about the Mexican real estate law. It can be quite complex regarding trusts, escrows, mortgages, treatment taxes, etc. and is often subject to interpretation by a court-appointed lawyer, known as the Notario. A small percentage of realtors in Vallarta have a fairly good understanding of Mexican law regarding real estate transactions, but the vast majority of them are sorely lacking in this area. Even with little or no knowledge of the law, they will advise you to heart, good or bad, therefore the best law to follow is caveat emptor, or buyer beware!

Because many pitfalls that the buyer may encounter when purchasing real estate in PV we learned decades ago that it is wise to interview realtors with scrutiny, keeping in mind that most everything will promote their own lists of first and your needs second. It's just human nature and with virtually no control in Mexico, it is fairly well assured. Also, because almost 100% of them have announced agreements with vendors, they are legally obliged to act in the best interest of vendors, and not necessarily in the best interest of the buyer. Because the buyer usually has no contractual relationship with the realtor, it will in all probability, get the "Short term" neck "in this conflict of interest.

Of all places, in Mexico, you must choose an agent that is 100% dedicated to helping you find the property that meets your needs and meets your requirements, preferably a contractual agreement with an agent with no ads, no ax to grind, no ulterior motive, and is the sole representative of buyers and their best interests.

A true buyer agent in PV have no property ads, should have full access to the MLS Vallarta, should know the areas and growth trends in and around Puerto Vallarta, should be able to negotiate on behalf of professionals buyer must have an understanding decent Mexican real estate law, should have a working relationship with the local notarios, counsel for real estate agents, escrow and title, mortgage bankers, insurance agents, inspectors, appraisers, and finally, your representative must have a thorough working knowledge of local real estate industry and understand the characteristics associated with it.

Buying your dream home or condo in Vallarta should one of your best experiences, but without due diligence, it can be a nightmare. Obtaining a buyer exclusive agent with dedication 100% for you is a prerequisite to ensure a pleasant start of your retirement in paradise.

More on Time Share Sales Mexico

Do illegal immigrants pay their fair share of taxes?

Pro-illegal immigrants continue to make the comment that illegal immigrants pay taxes like if they contribute equally. I do not understand how they can continue to trust this comment given the majority of illegals are paid "Under the table." Of course, maybe they pay sales tax, but they seem to act as if you pay the sales tax contributes equal compared to people who pay sales and income tax. Clearly, they are not equal. Real Americans pay at the time. In addition, a large percentage their income is spent in Mexico and not the U.S. then it goes much of the sales tax.

Some do and some do not. Those working under the table are not, of course. But there are plenty of "Imprint" who do too. But many false SS cards and find jobs that taxes withheld. Of course, the government is well aware that these names and numbers do not match correctly. But, knowing they will never drop tax returns and obtain refunds and credits they are "entitled" to, the government continues quietly money. It's the dirty little secret between SSA and the IRS. If they turned that information over to the USCIS, rounded up a large part of the illegal would be a breeze. But they will not do for 2 reasons. First, that extra money flows dried up. And secondly since they work for companies in much lower salaries would have to pay more for legal workers and who are not "favorable Business. "Never let it be said that the current administration is not business friendly" Otherwise, why Bush to push guest worker and amnesty?? To maintain the operating level with cheap labor, of course! I had my SSN hijacked twice so far. Once in the late 70s and again in the early 80s. Talk about a pain sorting out!

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