The Trust Deed
- The Trust Dees which is established by means of a Mexican
bank assures foreign property buyers of all rights and privileges
of ownership. In 1994 a Foreign Investment Law was passed
that allows these deeds to be constituted for a period
of 50 years and are renewable upon expiration. This law protects
the rights of foreigners and makes sure that the tansaction
is legal and unencumbered.
- As of 1996, Stewart Title Guarantee
Company has agreed to underwrite title insurance to our clients,
should they wish to purchase it. The cast of this insurance
is approximantly 1 % of the insured amount. We view this
commitment, as a strong endorsment by one of the largest and
most liquid Title Guarantee companies in the world providing
security in Mexican Real Estate.
- Know as "Predial", and because they have never been considered
a source of governmental revenue, property taxes in Puerto Vallarta
are very low, the rate is .08% of he assessed value, paid
every bimester, which is determined at the time of the sale.
The Closing Process -
It takes between 30-45 days for the closing process to be completed.
Through our office and a local public Notary, we coordinate
the paper work and escrow processes. The buyer pays the closing
cost; with the saler paying any capital gain taxes and real
estate fees. It is not necessary for the buyer and the selle
to be present at the closing, but by means of a power of attorney
can be represented by their Sales Associate.
- Back in 1994 a change in the Foreign Investment
Law now allows Mexican corporations to own property in the restricted
area as long as it is comercial property, this applies to even those
corporation with 100% foreign ownership. We must keep in mind
that comercial properties carry higher water & electricity
rates, plus require additional governmental reporting.
- Maintenance and security for condominium owners
is handled by the Condominium Owners Association. The fees are
paid on a monthly basis. For those homeowners who will be away
from their property for any length of time should consider a
property managmnet company a service which DCA de la Costa Realty
- We have in Mexico readily available at low cost various types
of insurance which include property, liability, damage, and
earthquake. All types of policies can be issued to pay claims
in U.S. dollars.
- Real estate purchases in Mexico are no longer all cash transactions,
with limited cases of owner financing available. Recently however,
U.S based lending institutions such as Irwin Mortgage and Metrociti
Corporation have bega to offer long term mortgage financing
in U.S. dollars for up to 80% of the transaction value.
- There exist a very strong rental market for both
homes and condos in Puerto Vallarta, and DCA de la Costa Realty
wih it's rental expertise can assist you by providing a full
range of rental services for you. Good properties can expect
to have an average occupancy of 85%.