See
why THOUSANDS of people from the USA,
Canada, and the rest of the world
have made Puerto Vallarta their home.
For
a retirement in paradise, or to OWN
your own vacation home (with income-producing
potential when you’re not using
it), Puerto Vallarta real estate has
been an attractive investment and
looks to continue to be!
Buying
real estate in Mexico is very similar
to owning property in the USA or Canada.
The one exception is that by law the
title to land within 50 kilometers
(about 30 miles) of the coast or border
must be held in trust (usually by
a bank), with the purchaser being
the beneficiary of the trust. The
beneficiary (you) have all the same
rights to the property that you would
have if you held the title outright;
you can rent or lease it, build on
the land and/or expand construction
(with the same zoning rules as apply
to Mexican citizens), sell it, will
it to your descendents, etc. This
is the government’s way of getting
around a constitutional article which
prohibits outright ownership of these
lands by foreigners. Trusts are valid
for 50 years and are renewable.
Once
you understand this peculiarity, the
purchase is nearly identical to the
process that takes place ‘back
home’. Your real estate agent
will prepare a written offer to the
seller. Once a price is agreed upon,
the seller and buyer sign an agreement
to this effect and the buyer makes
a deposit (usually around 10% of the
sale price). Prices are usually (but
not always) negotiated in U.S. Dollars,
and for payment checks drawn on U.S.
or Canadian banks are usually accepted.
Closing typically
takes place within 30 days. By law,
documents must be in the Spanish language,
but you may request translations in
English. As opposed to notaries ‘up
North’, the notary public in
Mexico is a legally trained representative
of the courts, and will perform a
title search on each property and
register each transaction.
Buyers are responsible
for closing costs, transfer tax (2%
of assessed value), cost of bank trust,
notary’s fees, registration
fees, tax appraisal fees, and trust
permits. The average cost to the buyer
for these items will be about 8 to
10% of the purchase price.
There
are many real estate companies in
Vallarta which will be happy to sell
you a home or property, but the services
of a “Buyer’s Agent”
who’s only interest is in your
satisfaction is an extremely valuable
asset. While this is true anywhere,
it is especially true in Mexico where
you may not feel completely comfortable
with the differences in the ways of
negotiating business in a different
environment than ‘back home’.
Most realtors represent both buyers
and sellers, making it impossible
for them to be completely un-biased
in their representation. A Buyer’s
Agent is ONLY responsible to YOU,
without concern for possible commissions
on the ‘selling end’ of
the transaction. Using a Buyer’s
Agent is simply the smartest move
you can make when making an investment
of this type and size.
While most real estate
purchases by foreigners are ‘all
cash’, several mortgage companies
in the U.S. are now offering financing
on Puerto Vallarta property due to
the popularity of Mexican investment.
Your buyer’s agent will help
direct you to these options should
you require them.
Your home in the
paradise of Puerto Vallarta will be
one of the finest investments you
can make, both financially and in
the resulting lifestyle. Vallarta
has a huge ‘ex-patriot’
community where you will make new
life-long friends amongst not only
your fellow country-men and -women,
but also the friendly native residents
who will welcome you to the community!
You won’t be alone…as
we said, Vallarta is already home
to THOUSANDS of your compatriots!
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