Cerritos

Bedrooms: 3
Bathrooms: 4.5
Levels: 2
Size(sf): 3120
Price: $420,000
Garage: Yes
Pool: No
Construction Status: Under Construction
Ocean View: Yes
Location: Cerritos

Sabalo Country

Bedrooms: 3
Bathrooms: 2.5
Levels: 2
Size(sf): 2346.5 SQ FT
Price: $230,000
Garage: Yes
Pool: No
Construction Status: NEW CONSTRUCTION COMPLETE
Ocean View: No
Location: SABALO COUNTRY CLUB

The Mexican land lease

A land lease for more than ten years is not legal and never has been legal in Mexico. If a lease that exceeds ten years is finalized and the landowner decides he wants his property back after the first ten years, he can disregard the agreement and legally take back the property regardless of the time period noted on the lease. The leaser would have no alternative, because a lease that exceeded ten years was signed and finalized. In this case, and under these circumstances only, can the Mexican Law take away the option to use the Mexican Court System. We recommend a lease only if you have limited your total investment to an amount you feel comfortable with, knowing that at the end of the, up to ten year, period you could be asked to leave the property. Today, the landowner may say he will renew your lease as many times as you want, but that may not be the case in the future.

El Toreo

Bedrooms: 3

Bathrooms: 2.5

Levels: 2

Size(sf): 1862

Price: $153,750

Garage: Yes

Pool: No

Construction Status: Resale

Ocean View: No

Location: El Toreo

HOA Fee: $0

La Ventana

Bedrooms: 3
Bathrooms: 2
Levels: 1
Size (sf): 1873.88
Garage: Assigned Parking
Price: $419,999
Pool: Yes
Construction Status: Completed/Resale
Ocean View: Oceanfront
Location: Marina Mazatlan
HOA Fee: $150

Financing and Closing

Financing

There is financing available through Mexican banks and now with US banks too. US banks have traditionally been reluctant to provide mortgage financing on Mexican property due to their inability to obtain title and potential difficulties with foreclosing in a foreign country. Purchases were limited to investors only with sufficient resources to buy real estate and had no need for financing.

Recently, this situation has changed dramatically. It seems there are more and more mortgage companies coming to Mexico. They offer seventy percent (70%) of the appraised trust amount. Interest rates vary yet most are two to three percent (2%-3%) above US rates and have up to fifteen (15) year amortization rates, although due to changes happening so rapidly the information you are now reading could be obsolete. It is best to check the current rates and see what the lenders are offering today. The bank trust has become sufficient collateral and a simple notation is made on the trust document to protect the lender (If buying in the interior a lien is placed on the property, much like in the US). Everyday more and more lenders are realizing that their investment in Mexico is a safe investment. Their introduction of mortgage capital shows a vote of confidence in Mexican real estate.

Closing

When an offer is made and accepted by all parties, a survey, current appraisal, and a letter of inspection are required. If the transaction is with a trust then the letter of inspection is sent to the bank and the bank will give you a letter that says all trust fees and requirements are met with the bank. A file is opened with a notary, and a lien waiver certificate, property tax receipt for the current year, and a letter from the Home Owners Association are required. This validates that all fees are current and there are no pending assessments with the Association or the Federal Zone. The Notary will also need from both parties of the transaction: proof of full names, marriage certificates, place of birth, official identification, and your visa to prove you are in Mexico legally. He takes all this information verifies it, along with a title search, and will not sign any document until everything is in order and within Mexican Law. Once everything is in order the notary will sign the document, record the transaction, and collect all government fees. The seller pays the capital gains tax, if any. However, an arrangement can be made to have the buyer pay this fee. The Notary will inform you of the amount, almost to the cent. Cash changes hands the minute the seller signs over the deed and, customarily, the buyer pay notary fees, which must be paid when the title is signed over. At this point the transfer is executed. Now, the notary must take the escritura to the Registro Público de la Propiedad (Public Registry of Properties). This should be done promptly, as the transaction is not valid until registered. Finally, once this is done the transaction is complete.

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