If you seam to be interested in purchase a property in Mexico, let us give you some useful & necessary tips to help you make the best decision, when it comes to investment.

Before doing any kind of transaction or starting the purchase process, it is important to review certain aspects of the property, such as: Free encumbrance, Free mortgage, Property tax paid, Property Measures verification and any other legal problem that could keep the property from been bought.

The cactus03 team makes sure to have all of our listing with the correspondent documentation in order to make the purchase process fast and easy.

Cactus03 mission is simple: provide services that maximize the value of each penny our clients spend in real estate services. Provide “know-how”, business sense, and market knowledge, expertise in the real estate business in each stage of the transaction purchase to negotiate and close the deal the best way possible.

Back on the purchase transaction process, the next step after making an offer and been accepted is when eventually, the interested parties agree with a “trading commitment promise” under the respective terms on which the transaction must be done, such as: price and payment method, closing date, advance payment (generally 10% of the agreed price)

The “trading commitment promise” only gives obligation to be consistent in the celebration of the respective future contract in accordance with what was offered. In order to make the “trading commitment” valid, has to be done before a public notary. (A public notary it’s a property law specialist and it’s certificated by the Mexican state)

Once the price and the payment method is right and the “trading commitment promise” done, the next step it’s the closing stage, which has to be done before the presence of a public notary,. This expense has to be paid before the operation. This closing stage formalizes with the creation of the new property deeds, having the sign of the parties, this way, transferring the property title from the seller to the buyer. The public notary will provide to the parties a copy of the certificated deed while the purchase deed is registered and accredited by the public property registration dependence.

It’s important to notice that the buyer is responsible for the trading expenses, such as Public notary fee. The seller is responsible to pay the income tax (ISR) and the value added tax (this if the property has a commercial use). The public notary fees vary.

To consider an exemption of income taxes, the first requirement is to prove the seller lived in the property for at least 5 years. This way by law you are exempted of income taxes.

To prove the seller lived for at least 5 years in the property, the easiest way to do it is to show electricity and phone bills with name and owner address.

It is an important fact that, in the case of foreign citizens who want to buy a property, the property should be granted to a trust. However this does not applies in case of Mexicans constituted with foreign partners. Besides these conditions, a foreign citizen must count with a FM2 updated visa with name and address as it appears in the property deed.