Realty Executives : Owning Beachfront properties

PUERTO PENASCO FEATURED IN HOUSE HUNTERS INTERNATIONAL

Realty Executives Puerto Penasco// Rocky Point — Sat, 09 Feb 2013 00:43:00 GMT

The popular HGTV television show, International House Hunters, visited our beautiful beach community, Puerto Penasco to film one of Realty Executives top agents, Dan Monroe as he sold a Phoenix couple their dream condo at Las Palomas Golf and Beach Community. The TV show featured several condo projects, the Princesa, the Sonoran Spa and Las Palomas, as the couple searched for the perfect family getaway for their two active boys. They were searching for a 3BR condo with beach views with amenities that would keep their growing boys busy. Incidentally, the boys have a special affinity for the Mexican beaches and seem to blossom in the sunshine and peaceful ocean waves. Dan does an exceptional job of finding the ideal condo that the family can turn into their dream getaway with a lovely huge patio, gorgeous ocean views, fully furnished and appointed, and still remain in their budget. The family enjoys the infinity pools, water slide, hot tubs, and fabulous beach at Las Palomas and loves to come down to Penasco to enjoy the friendly people, the terrific food, and Sea of Cortez' gorgeous beaches!

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Escape to the Beach for Labor Day

Realty Executives Puerto Penasco// Rocky Point — Mon, 27 Aug 2012 21:03:00 GMT

Looking for something fun for Labor Day Weekend? Rocky Point has some great condo specials for the whole family. Be sure to beat the heat and have some great times in Rocky Point. After a fun day of sun and sand, be sure and check out some great music at Changos and The Lighthouse. Saturday night at Las Palomas will feature stand up comedy from Gene Pompa. Hope to see you there!

Mexico Buyers Guide

Realty Executives Puerto Penasco// Rocky Point — Sun, 02 Nov 2008 00:29:00 GMT

Mexico Buyers Guide

For anyone that has enjoyed Mexico's beautiful beaches and sizzling nightlife, owning property there is a dream shared by most. However, many perish the thought because of stories they've heard, or confusion between past and current laws.

While you're not protected under the U.S. real estate laws you've come to understand, additions and modifications to Mexican real estate laws, as well as the ability to use U.S. Title Insurance and U.S. finance institutions have made it easier and more comfortable for foreigners to purchase property throughout Mexico. By following some of the guidelines below, you can avoid confrontations and misunderstandings. For more information on any of the topics below, download the Arizona Department of Real Estate's Consumer Guide.

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Biggest Myths
Types of Property
Formalities
Real Estate Professionals

Some of the biggest myths about buying property in Mexico include:

Foreigners can't own real estate in Mexico.
In most of Mexico, any foreigner can own land outright with what's called fee simple title, the same kind we have in the United States. Only in the restricted zone - 50 km (31.05 miles) from the ocean and 100 km (62.1 miles) from the borders - is it true that foreigners can't hold fee simple title. Puerto Peñasco is in that area, so these limitations apply. By using a Bank Trust (Fideicomiso), prospective land owners can bypass the limitations of a fee simple title, and engage in the process of purchasing foreign land in the Puerto Peñasco region.

An American must have a Mexican partner (who has at least 51% ownership) in order to own real estate in Mexico.
Under the new Foreign Investment Law of 1993, a Mexican corporation can be owned 100% by foreigners, and the corporation can buy and own any property with fee simple title, as long as its use is non-residential.

A Bank Trust is a lease agreement.
A Bank Trust is NOT a lease. Under a Bank Trust, or "Fideicomiso," the buyer has all the rights of ownership: the right to buy, sell, lease, use, bequeath, improve, transfer, and encumber. A lease grants only the right to use. Anything built on the land automatically becomes the landlord's property.

The Mexican government can take away property at any time.
The Bank Trust is established by the government and gives foreigners the same rights of ownership as Mexican citizens. The only difference is that they never receive the actual fee simple title. It is held in trust for them by a bank, although the deed to the trust is not an asset of the bank in which it is held. The term of a bank trust is for 50 years, and is renewable in perpetuity.

Types of Property

In Mexico, there are basically five types of property available to foreigners for purchase.

Subdivision: By acquiring a fee simple interest, one earns the right to purchase property in a subdivision, depending on the location of the property. The permit acquired is registered through the Public Registry of Property for the jurisdiction in which the property is located.
New Construction: By acquiring a construction permit from the local city government, a foreigner earns the right to build a new residence. The builder is responsible to obtain the title to the parcel of land, the permit, and hire the contractor.
Resale Property: Purchasing resale property is possible by acquiring a Bank Trust, depending on the location of the property.
Condominium: Purchasing a condominium is possible by acquiring an interest in a properly recorded condominium regime. Condominium regime's are public documents that have been notorized by a Mexican legal notary and are not legally obtainable until construction is complete.
Timeshare: Purchasing a timeshare is possible by acquiring timeshare rights in a property. Timeshare rights (as opposed to real property rights) are contractually acquired interests to use property according to the terms of the purchase contract. Through the Mexican Federal Consumer Protection Law, buyers have the irrevocable right to cancel all timeshare purchase contracts, within five days of signing the contract in question.
Fractional: "Fractional" or "Interval Ownership," is often referred to as "Equity Sharing." Fractional ownership offers all of the pluses of whole ownership without all the hassle. People can now truly buy only what they will need or use. Even the most ambitious traveler typically only makes it down to Puerto Peñasco one or two weekends per month, making Fractional Ownership the most cost effective and useful option.
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Formalities for Purchasing Property in Mexico

To properly purchase land in Mexico, there are a number of documents and formalities that you must go through to achieve actual ownership. Each one of these is necessary to guarantee that the process is legal, and can hold up in a Mexican court of law.

The most important document a buyer must obtain is a bank trust, or Fideicomiso. Under a bank trust, a Mexican bank holds the legal title to the property for the benefit of the buyer. The buyer, as beneficiary, has all of the rights of ownership including the ability to use, rent, modify, improve, and sell the property. Under present law, bank trusts are created for fifty-year terms, renewable indefinitely.

Once a site is found, a Mexican appraisal is used to determine the taxes for closing. The taxes will be based on the greater of the appraisal value or the purchase price. Buyers must not under-report the purchase price to the Mexican Public Notary.

In order for a purchase to go through, the buyer must formalize the purchase before a Mexican Public Notary. Under Mexican law, only Notaries are authorized to prepare and record a property deed. Notaries are attorneys appointed by the state government to specialize in various matters.

Once the purchase has been formalized, a buyer will ensure ownership rights against the seller, and any other challenging third parties by recording all property transfers at the Public Registry of Property. The Public Registry of Property is the central recording entity for all public documentation concerning property.

Real Estate Professionals

While Clifton Meridian only employs fully licensed real estate professionals, buyers who wish to work with a local professional should conduct business exclusively with real estate professionals that are registered with the state under the Sonoran Law for the Registry of Real Estate Professionals. Because you are not protected under U.S. law, it is important to deal with someone that understands Mexican law, and how foreign land ownership works.

Just like in the U.S., if a property is listed for sale with a real estate agent, that real estate agent is typically compensated by the seller. If both parties have a real estate agent representing their respective interests, agents will split the commission.

It is not required that the agent representing the seller split the commission with the buyer's agent. Typically, when two agents are involved, both enter into a contract enforcing a fair commission split.

While many agents subscribe to MLS in Mexico, MLS does not operate in exactly the same fashion as does its U.S. counterpart. It is for this reason that you will want to find a licensed and reputable real estate agent.

Questions and Answers about owning beach front property in Mexico

Realty Executives Puerto Penasco — Mon, 03 Sep 2007 16:28:00 GMT

The following article by Morgan Financial provides a few basic answers; if you have other questions please post them and we will provide a response for you.

Owning Beach Front Property in Mexico

By Morgan Financial

With about 75 million baby boomers retiring soon and home values in the warm coastal areas of California and Florida becoming less and less affordable, many Americans are looking south to Mexico to purchase and finance vacation and retirement homes. The economy in Mexico is experiencing a surge in development and home prices fueled by interest from US homebuyers and investors. Properties are selling quickly and home prices are increading every month. Mortgages are now available for both new construction and exisitng residences. If you are looking to purchase property please look through the following QUESTION & ANSWERS

Q. Do I need a passport to own property in Mexico? A.Yes, you will need a valid U.S. passport

Q. Is the property owned in a 99 year lease? A. No, the property is held in a bank trust. "Fideicomiso" granting the trustee-an American corporation established in the name of the buyer- all the rights of ownership for a fifty year term. The trust is inheritable and extendable and is backed by an international bank.

Q. Can a foreigner own real estate in Mexico?: A. Yes, foreign buyers can own real estate in the "restricted zone" along the coast, by obtaining all ownership rights through a Fidecomiso or bank trust. This bank trust is established by the Mexican government "A Notario" and gives foreigners the same rights of ownership as Mexican citizens enjoy, except that the actual title is held in the name of the trust.

Q. How do I begin to create a trust? A. The Notario-a representative of the Mexican government- will wright up the new Fideicomiso and contact the bank to render the trust legally binding.

Q. What can I expect from Property taxes in Mexico? A. Taxes in Mexico are very inexpensive. On a $500,000 property for instance, you can expect to pay about, $50-$70 a month in taxes.

Q How do I hold title? A. Foreigners, in most cases, hold title with a bank trust. It is fee simple and the only difference between holding title on most property in the U.S. is that the bank holds the title in the name of a U.S. corporation with the U.S. buyer as the sole shareholder. When lending for a first deed of trust, the lender holds the bank trust until the loan is paid in full.