Erestu

So, have you reached a point in your life where you think you a little about business, finance, contract negotiations, real estate, etc. and have at least one lay person to know the law, learned about each . His, mind, you might also be aware of the incredible retirement locations and values south of the border, or you could even taking into account as your retirement destination in Mexico. If so, then you can forget everything you’ve learned and get your degree in Law at home!

Mexico, as beautiful as it is, has a slightly different way of doing business and a completely different laws. In addition, all transactions, including real estate transactions conducted in Spanish. Therefore, for those of you that may consider in locations in Mexico as possible retirement destinations, should the following information will give you an idea of how the Mexican real estate industry works, list some of the possible pitfalls and, above all, you need the guidance to a pleasant and safe experience warrant.

In 1984 we made our first real estate purchase in Puerto Vallarta, a condo in Mismaloya, about seven miles south of the city. Our second purchase, two years later, the adjacent row house. A year later, we moved the wall between the two condominiums and converted it into a very spacious three bedroom condo. For thirteen years, while still in Houston, we enjoyed visiting Vallarta two or three times a year.

At some time after the purchase of the two condos, we noticed that our original Escrituras (legal property documentation similar to a title or deed that is held in trust in a fidecomiso or bank), the property values were about one-third of what we actually paid for them. When we inquired about the discrepancy, we were told that the lower values were used to reduce our annual property tax.

Only many years later, when we decided to sell the apartment, we learned that capital gains taxes were for the large difference between the sale price and the purchase price recorded. Ouch, we owed substantial taxes to win on paper, if in fact there was very little real gain! We learned then that the condo developer of the extremely low sales prices on all Escrituras entered in the condominium complex to avoid paying substantial capital gains taxes. As we learned later, the developers could have entered the selling price, the appraised value, were the cost of the construction, or just about anything imaginable in the Escritura, and we, the Americans that we were naive, at his mercy!

After selling the condo, we bought a beautiful new mountain chalet with a panoramic view of Banderas Bay, El Centro, and the Sierra Madre. We saw the new villa advertised in local magazines and asked our broker friends show us the property. He showed us how it seemed to every property in town, before reluctantly to see us at the villa in the magazine. Some time after the purchase of the villa, we learned that our friend will receive only 10% of the realtor commission for the sale, because that was all the applicants willing to pay. The applicant ran the ad in the magazine and did not feel that an agent of a buyer was required to sell this beautiful new villa. Therefore, our agents spent a few days shows us nothing properties by his agency before caving in to our demands and among us, our dreams of the villa, we have carefully at more than a decade enjoyed listed.

These experiences showed the tip of the iceberg of the real estate industry, and after living here for ten years, we have now finally managed to set the whole iceberg Put some of the details below.

At the beginning there are no licensed brokers or agents in Mexico! In fact, there are no mandatory licensing for brokers in all of Mexico, because the federal legislative process is to accomplish more, and therefore such legislation remains in limbo. In Puerto Vallarta, where, in more than 80 real estate agencies, there are probably more than 500 estate agents are skilled low. With the booming real estate market and economy that exists today, it’s pretty obvious why we have such a diverse group of agents and brokers in Vallarta.

To have a degree of continuity from agent-agent, a voluntary association for real estate personnel are available in various areas of Mexico. The Asociación Mexicana de Profesionales Inmobiliarios AC, AMPI as is known, is very active in Vallarta with the accession of 50 of the 80 real estate agencies in Vallarta. Although membership in AMPI is not obligatory and has no effect on the ability of the agent, the buyer or seller, it is assumed to be the flag bearer for the listing agent in the area.

Another Real Estate Association, made up largely of Mexican agencies in Vallarta based, Asociacion de Profesionales de Vallarta AC Inmobiliarios how APIVAC known.

These organizations plan and carry out regular conferences, educational programs, and hold various meetings where they try, their members and the public about current activities in the area and changes in Mexican law as it relates to real estate. They have codes of ethics and they try to uniform rates of documented operational policies and procedures, some of which are understood in written form, others, but not create. They bring together real estate personnel, where its members have voluntarily committed to keep their organizations by statutes and rules of ethics, while you try to work with a certain continuity and professionalism. These associations are certainly better than nothing, but still can not be confused with associations like the National Association of Realtors or NAR in the United States. Dual agency disclosure, called Job, full disclosure, confidentiality, imputed knowledge and notice of implicit knowledge, loyalty, loyalty and agents are foreign concepts to the majority of estate agents in Mexico. Consequently, misleading or inaccurate statements often made by many of the agents, both the buyer and seller in intolerable predicaments brought in Mexico.

Although AMPI NAR and have a working relationship, an example of the differences between AMPI NAR, and NAR, that its member companies provide agencies with a standard nationwide listing forms, pre-qualification forms, escrow account and earnest money forms, standard purchase contract forms, letters of intent, etc . In Vallarta, there are no such forms of AMPI or APIVAC provided. Each real estate agency has its own form or a form listing is provided by an external private publishers, which shows clearly the listing agent as receiving 100% of the commission on the sale of the property available. NAR also has written and enforceable guidelines for the handling of fees and the sharing of commissions between the buying and selling agents. Although there are guidelines for real estate commissions in Mexico, they are more flexible and negotiable to some extent with the seller. Applicants can then negotiate with the Commission Sharing “Buyer’s Agent.

All other forms vary from agent to agent and not necessarily in the best interest of the buyer wrote. Furthermore, most forms and contracts for North American English, but the Spanish version is the only document that any legal status in Mexico. Therefore, regardless of what you want in English, Spanish-speaking lawyer should read always represent you with your agent.

Another important difference between the Mexican clubs and NAR has to do with the Multiple Listing Service or MLS. In the States, the MLS is controlled and monitored by NAR and NAR is available to all agents. In some Mexican cities, including Vallarta, there is an MLS, but it is not controlled by AMPI or APIVAC. Instead, it is privately owned and operated by a local publishing company and is looking for real estate to the public free of charge. AMPI members may use their properties on the MLS Vallarta list, with the general public and the other members of AMPI and APIVAC access to special offers.

If you understand the inner workings of the real estate industry in PV, you have to learn a little about Mexican real estate law. It can be quite complex on trusts, escrows, mortgages, treatment of taxes, etc. and is often open to interpretation by a state appointed attorney, known as notario. A small percentage of brokers in Vallarta have a fair understanding of Mexican law as it relates to real estate transactions, but the vast majority of them are painfully lacking in this area. Even with little or no knowledge about the law, they are anxious to advise you, right or wrong to follow, therefore the best law is caveat emptor rule, or buyer beware!

Because of the many pitfalls which have a buyer may purchase real estate in PV we learned over twenty years ago that it is wise to interview brokerage with scrutiny when you consider that almost all are promoting their own listings first and your needs second. It’s just human nature and with virtually no control in Mexico, it is pretty safe. Also, because almost 100% of them have listing agreements with the providers, they are legally obliged to act in the best interest of the seller, and not necessarily in the best interest of the buyer. Because the buyer usually has no contractual agreement with the broker, he will most likely get the “short end of the stick” in this conflict of interest.

Of all places, in Mexico, you should choose an agent dedicated to 100% helps you find the property that matches your needs and your requirements are met, preferably, a contractual agreement with an agent with no listings, no ax to grind, no hidden agenda motif, and exclusively representing buyers and their interests.

A true “Buyer’s Agent in PV should be no property listings should have the full access to the MLS Vallarta, should the areas and growth trends and to Vallarta to know, should be able to professionally negotiate on the buyers behalf, should be a decent understanding of the Mexican real estate law, should have an association with local Notarios, real estate lawyers, trustees and title agents, mortgage bankers, insurance agents, inspectors, appraisers, and finally, that your representative a thorough knowledge of the Local real estate industry and understand the idiosyncrasies associated.

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