Our Real Estate expert Alfredo Barragán González is owner & director of Albago Estates, his experience and awareness of the real estate market, rentals and Administration business has been acquired over the years of working with owners, buyers and sellers. In many different scenarios that has allowed him to gain knowledge and offer you many strategies for the best results, in your real estate needs and or transactions, many clients have become longtime friends over the years because of his way to conduct business.
Albago Estates has built a respectable reputation in consequence most clients it holds have been referred, within friends & clients; we believe that’s the best presentation card and that’s why “the voice of your satisfaction is our success”, was chosen as our company slogan. Once you use our services for the first time we feel responsible to offer you solutions and facilitate the process, understanding your purchasing needs or selling purposes helps us give you the attention and service you expect from us.
We feel when a client returns for a second transaction or for other services, our service offer expectations have been met. When you come to Albago Estates you have the assertiveness of having the best service team, since AE has built solid relationships with many real-estate transaction collaborators such as:
- Property Evaluators Expertise
- Closing coordinators
- Escrow Companies
- Lawyers that work for the company AE
Alfredo is well known helping clients find the right home at the best price , bringing to the table buyer and sellers, his organized structure is unique making everything clear and having an easy go process, letting you know you are in the right hands , leave it to his expertise and Sales Team staff.
Whether you are trying to sell or purchase he can always be a trustful reference to come to for trusting reliable answers. He is strong and well known in the Marina Vallarta area & Hotel zone, but is limitless when the services are required, he is a self-taught person and his professionalism and service orientated values always allow him to deliver clients expectations.
What do I need to list my property for sale?
- We need a listing contract to represent you and have permission to promote your unit is the marketing media used by our company. (Point south Magazine, Property Journal, Webpage & other.
- Property title with information from Public Register Office
- Property Tax payment
- Proof of Address preferably recent utility bill such as :Water w/service number
- Payment Homeowners Fees (Current)
- Official id´s
- Personal information (full legal name, date of birth, place of birth, address, contact information email & phone.
- Beneficiary information (full legal names, copy of passports & official Id´s, plus addresses).
- Birth Certificate
- Valid passport
- Valid Driver’s License
- Marriage Certificate
- Condo Regulations and regimen
- Assembly proceedings protocol
- Powers for act of domain
- Constitutive Proceedings for (moral Status)
- Scrow script trust
Deed (escritura pública)
A deed is a public document submitted by a Public Notary, which state all the information related to the property history, registration on the public register office that give ownership to the owner.
The notary public that signs with the granter or grantors gives faith of the legal capacity of the content and the date that the property change ownership.
Mexican laws state that foreigners are not allowed to acquire real estate directly in certain areas of Mexico. They also state that the purchase or sale of property, located in a strip of 50km along the coast and 100 km along the borders is not permitted in terms of full ownership to foreign individuals or corporations for residential purposes.
The areas above mentioned are legally defined as “prohibited areas” or “restricted Zones”. Potential foreigner investors, who are interested, in purchasing property located in these areas, must channel, their purposes through the establishment of a “TRUST / FIDEICOMISO”, with a Mexican bank. The trust is the only legal instrument, and the most advantageous to foreign investors wishing to buy property, invest in tourism or industrial developments anywhere in Mexico, including the restricted zones, for a time period of 50 years renewable.
Can Foreigners buy property in Mexico?
The answer is yes, there are legal steps to follow, when buying property in Mexico as a foreigner.
It must be purchased through a bank trust, known as a Fideicomiso. Foreigners need a bank Trust to purchase in Mexico, because of the Mexican constitution of 1917 designated the area within 100 Kilometers 62 miles of Mexico´s borders and within 50 kilometers 31 miles of the coastline as off limits, to direct real estate ownership by foreigners. This is known as the “prohibited Zone” but the new beneficial legislation in place now refer to it as the “restricted Zone”.
What is a Fideicomiso or Bank Trust?
The fideicomiso is a legal contract similar to a trust to which which a person gives ownership of certain assets for it to administer. The fideicomiso, sometimes referred to as a bankers trust, is most commonly used to hold real estate in Mexico. Such a fideicomiso is a real estate trust that is held under your name in a Mexican bank. The bank acts as the fiduciary, you and your heirs and assigns are the beneficiaries of the fideicomiso.
As the beneficiary of the fideicomiso you absolutely and irrevocably maintain control of the property, use, maintenance, and control over all property decisions. The fideicomiso is not a lease, it is equivalent to a fiduciary in the US.
The fideicomiso gives the beneficiary absolute control of the property. So you can enjoy it, lease it, improve it, mortgage, sell, inherit, give away. Basically, your property is under a fiduciary of which you are the owner to be managed by a bank in Mexico on your behalf.
What is a CURP?
A Curp is a formal identification number that all Mexican nationals, acquire at birth (on their birth certificates). Mexican residents acquire this CURP number on their resident cards and foreigners have it on their resident cards and foreigners have it on their resident cards (both permanent and temporary).
What is public Registry?
- In Mexico deeds, usually known as public instruments, can be researched at the local public registry of property witch is open to the public.
- The deed must be finalized and signed by a notary public.
- The deed will typically list the parties involved in the transaction including the Notary, seller, buyer, and the trust fee bank.
- The deed identifies the Property.
- Once the deed is finalized and signed by the Notary , by the seller, by the Bank trustee, (if a bank trust is involved) and by the buyer (who will also be the trust beneficiary if a trust is used), the purchase price changes hands and the transaction is considered closed.
Must the sale of a Property go through a Public Notary?
In Mexico, a Notary public, is a quasi-governmental official who receives all documents of importance with respect to the sale of real estate.
The Training, function and responsibility of Notary public, in Mexico, Are completely different in North America. In Mexico, a Notary Public, is appointed by the governor of a Mexican state for life. A Notary, must be a Mexico, licensed attorney.
Can Foreigners get a mortgage loan in Mexico?
- Yes! Currently financing is available for citizens of Mexico, the USA, Canada, the UK and Spain.
- There are financial institutions that work locally and have been improving the quality of service, speed of the transaction and lowering the rates to attract more buyers.
Can foreigners open a bank account in Mexico?
- he answer to this questions is: YES!!Requirements are as follows:
- Proof of Address
- Tourist card or FM3
- Given in Arrival in Mexico
- 3 local references
- $3,000 pesos to open the account
Bancomer is a great back that we recommend, for peso accounts as they offer a fully bilingual service for foreigners, (Preferential Client Section) they have experience dealing with property owners and renters who are not here all year round and give you a Gold card, to have preference on the customer service line. Including other benefits such as, paying bills on line, write checks in pesos, make standing orders for bills to be paid each month, make payments via internet and keep track of your balance, you can make standing order checks for services to be paid when you are not present.
As a Foreigner selling my property will I pay capital gains tax on closing?
The simple answer is yes, if you made money you need to pay tax.
Yes, if you are not a full time resident and tax payer in Mexico. (You need a valid Permanent Resident immigration card or a Mexican voter card (INE) and all bills in your name as proof of residency).
In Mexico, the concept of capital gain Tax does not apply in the sense in which it is determined in the United States. Here, the tax on the gain is 35%. For example, selling a property for $200,000 USD when was bought for $100,000 usd generates $35,000 usd tax.
However, in order to determine the gain, the following cost and expenses are deducted from the amount for witch property is officially sold:
- The original land cost and depreciated construction cost, based on the number of years the property was held and adjusted for inflation according to the official, consumer price indexes.
- Additions Modifications, modifications and improvements, but not maintenance, made on the property (construction), adjusted above.
- Commissions paid to real estate brokers by the seller.
- The closing cost, including all expenses, taxes and fees paid by the seller. The notary will retain the calculated gain after deductions forwarding it to the Mexican tax authorities. The seller will deduct this amount against his/her annual tax return, which becomes an adjustable tax credit in the U.S.
In order to ensure you are paying what you should be and not being over charged, we work with qualified legal tax accountants to help us ensure the whole process is legal, and straightforward.