There have been many articles written on this subject so I'm not going to belabor it, simply provide you with a few facts. Everyday I answer real estate clients questions on the buying process here and I thought it might be nice to have the answers all in one spot. Buying real estate in another country can be a nerve wracking experience, or it can be very easy depending on your attitude and the quality of help and guidance that you receive along the way. Remember that everyone has had a different experience and their perception may not be the same as yours.
Here in Mexico you may hear the term Notario, it has a very different meaning here than back home in Canada or the US. The Notary assumes the greatest responsibility in seeing that the government requirements are met. A Mexican attorney who has been practicing for at least ten years and meets the rigid qualifications required can finally be appointed as a notary. There are only 100 notarios here in the Yucatan, our "lawyer" is actually a notatio. It is important you know that in Mexico, a “Notario” has far more clout than a real estate lawyer. All “notarios” are lawyers, but not all lawyers are “notarios”!
Yes you can legally own property here, there are two ways of doing it, either through a fideocomiso or a Mexican Corporation. A corporation would apply only if you were purchasing multiple properties, opening a business or buying an extremely large piece of land. Normally people purchase through a fideo, this is a trust that is held by the bank, it gives you total rights to your home for 50 years, and is renewable on the 49th. With a fideo you can add on, knock it down and rebuild, rent, renovate, landscape, anything that you can do with your current home. There are many prices quoted for fideo's depending on the attorney you use. Our Notario charges $1300 for the process. The fideo has an annual fee that must be paid, price is depending on the size and location of your home, a good ballpark figure is $400 a year. In addition there are annual taxes that need to paid on your home, ours were $36 this year, we are one block back from the beach. If you live directly on the beach there are also beach assessments.
Speaking of the beach, there is a law called Decreto 801, this has to do with building a new property on beachfront lots, due to the environmental impact there are many restrictions in place now. Unless a beach property is zoned urban you may or may not be able to build on a lot that has never had a house on it. This law is very complex and I am not going to try to interpret it totally. Best to speak with a lawyer or architect on this one.
Most of our clients are on a limited time frame for buying a home, they have a week or less to see the area, meet local expats and see potential homes. We try to devote as much time as possible to ensure that they get a true feel for the area as well as finding out what they really want. Because of this we try to schedule all the time needed for our clients. Once they have found their "dream home," we call our Notario and set up an appointment, generally the next day. This appointment is to sign a contract that states the buying price, owners name and location. The owner is now responsible for getting our Notario all the documents needed to complete the purchase. Our Notario does a total check on all documents, including title search, payment of back taxes, electric and water bills. You then have 3 days from your return home to put 10% of the purchase price as well as the fideo fees in an escrow account that Mayan Living has set up in the USA. The closing process takes approximately 30- 45 days. If at that time all the paperwork has been proven free and clear you are responsible for the other 90%. On the other hand if there are any problems with the paperwork of your home your entire deposit is returned. Many times our new home owners can't return in that time frame to sign the closing papers. If that is your case we can have our attorney set you up with a limited power of attorney, this states that Doug or Sean may make real estate purchases in your name. It does not entitle them to sell any property for you, only buy it. It also allows them to board up your house at your request, in case of bad weather and call the police if someone is on your property that shouldn't be. The cost for power of attorney is $200.
Our services also include, showing you where to shop, where to buy furniture, how to pay utility bills, how to get your utilities hooked up, guidance to local area attractions, where to pay your taxes, referrals for laborers and local contractors. We have a crew that works for us, however their English is limited if you prefer someone else we will be happy to help you. We can also help with referrals for property managers. I wouldn't find it wise to leave my house back home unattended for 10-11 months a year, it is the same here.
Closing costs here are all paid by the buyer and normally run between $3500 - $4000.
Many times we hear clients or other expats say that they would prefer to buy property on their own and save paying the realtor fees. It is easier said than done, first off you need to be fluent in Spanish, secondly many of the owners of beach homes don't live here at the beach, next do you know how to go about the entire process without assistance, will you require assistance later? Do you really want the assistance of someone who has only lived here for a year or two and doesn't work daily in the business? There are many helpful people here in Chelem/Chuburna, many are retired, but not from Mexican Real Estate! Seek their opinions on where to eat, get your laundry done etc. Leave real estate purchase advice to the pro's for your own peace of mind.
Mayan Living Real Estate has been in business nearly 10 years and has a great reputation, there are many fly by night "realtors," out there, buyer beware. We purchased our first home with Mayan Living in 2002 and wouldn't consider working for them if there had been any glitches in our purchase. We are here at the beach for the rest of our lives and consider all of our clients to be new neighbors! All of that being said, we are the number one real estate company in the Yucatan for a reason, we don't just sell you a house we provide the guidance needed to live happily in Mexico. Doug has said numerous times that his number one priority is his reputation so when you see him the next time you are going to wave at him with all 5 fingers not just one!
Warm breezes and cold beers coming at ya from Chelem!
Showing posts with label property management. Show all posts
Showing posts with label property management. Show all posts
Monday, June 1, 2009
Monday, May 4, 2009
Being Sick in the Yucatan
Well I have just been released from the hospital, but not from having the swine flu! I had some female related surgery, but now I am home and ready to stay in touch with friends and followers. I wish I had news on what is going on with the swine flu, but am a little out of touch, however I do know that there are no cases in the Yucatan, I questioned my surgeon at length. I was just reading an article about the flu on another blog and thought that it was excellent so here is the link to it. It is written right in Merida and is up to date.
I have raved for years about the medical care in Merida but have never been hospitalized, now I can talk first hand about that experience. To begin with unlike many of the bloggers that I follow from the Riveria Maya area my spanish is nowhere near perfect. I speak normal everyday spanish, drinking spanish, eating spanish, real estate and construction spanish. The idea of going thru a series of lab work and tests, being admitted to the hospital and having surgery without being able to say anymore than "I don't want any pain please," scared the bejesus out of me. Thank goodness a good friend of mine introduced me to a lady named Teresita. Teresita is a medical social worker that provides transportation, translation, fills prescriptions and goes with you to any appointment that you have. She is fully bilingual being from Belize her first language is English. She went to all my appointments and listened to all my concerns and explained everything to me, throwing in personal comments, stories about her family and places that she had been. What a gem. She doesn't have a set fee for her work, you pay her what you can, she works with extremely wealthy client to those that pay her with a pot of soup.
After having blood work, mammograms and a series of poking and prodding exams Teresita, Doug and I head back to my doctors office for a reading of the results. It appears that I need to be admitted immediately and have surgery the same nite! Oh Crap, I am so scared! Teresita and Doug took care of all the admittance paper work while I was taken to my room and prepped for surgery. The room was great, private, with a nice bed for Doug to spend the nite. I was in surgery for 5 1/2 hours and woke up in recovery at 3:30 in the morning. Teresita is by at 7:00 am to check on me and then back that afternoon. The nurses were attentive and the hospital was quiet, unlike any other that I have ever been in. My private room overlooked a lovely terrace filled with tropical flowers, the meals were good and visitors allowed until 10:00, excluding children and pets. All in all as good as an hospital experience can be.
Now was the next scarey issue, payment........ Doug and I had been putting off getting Mexican health insurance, not because of the cost, but because we had been so busy with real estate and property/construction management. Here in Mexico, they will admit anyone into the hospital, but won't let you leave until you pay up, kinda wacky isn't it? So. I had a 5 1/2 hour surgery that included 4 different procedures ( I won't go into them for the sqeamish that may be reading), 2 nites in a private room and many meds. Total cost in dollars a little less than $3400 and that includes all followup visits! I think thats a heck of a deal! Of course if I had taken the time and paid the $300 a year for mexican insurance it would have been free!
Now I am home and bed bound for the next 2-3 weeks, my friends have been gathering around me more than I could have possibly believed, they have brought fresh fruit, salads, chicken, chicken salads, watered my plants, sent flowers, sent ecards and so many other things that I can't name it all! Next post I want to send out personal thanks to all, until then warm breezes and cold beers coming at you from the Yucatan, the most wonderful place in my world!
I have raved for years about the medical care in Merida but have never been hospitalized, now I can talk first hand about that experience. To begin with unlike many of the bloggers that I follow from the Riveria Maya area my spanish is nowhere near perfect. I speak normal everyday spanish, drinking spanish, eating spanish, real estate and construction spanish. The idea of going thru a series of lab work and tests, being admitted to the hospital and having surgery without being able to say anymore than "I don't want any pain please," scared the bejesus out of me. Thank goodness a good friend of mine introduced me to a lady named Teresita. Teresita is a medical social worker that provides transportation, translation, fills prescriptions and goes with you to any appointment that you have. She is fully bilingual being from Belize her first language is English. She went to all my appointments and listened to all my concerns and explained everything to me, throwing in personal comments, stories about her family and places that she had been. What a gem. She doesn't have a set fee for her work, you pay her what you can, she works with extremely wealthy client to those that pay her with a pot of soup.
After having blood work, mammograms and a series of poking and prodding exams Teresita, Doug and I head back to my doctors office for a reading of the results. It appears that I need to be admitted immediately and have surgery the same nite! Oh Crap, I am so scared! Teresita and Doug took care of all the admittance paper work while I was taken to my room and prepped for surgery. The room was great, private, with a nice bed for Doug to spend the nite. I was in surgery for 5 1/2 hours and woke up in recovery at 3:30 in the morning. Teresita is by at 7:00 am to check on me and then back that afternoon. The nurses were attentive and the hospital was quiet, unlike any other that I have ever been in. My private room overlooked a lovely terrace filled with tropical flowers, the meals were good and visitors allowed until 10:00, excluding children and pets. All in all as good as an hospital experience can be.
Now was the next scarey issue, payment........ Doug and I had been putting off getting Mexican health insurance, not because of the cost, but because we had been so busy with real estate and property/construction management. Here in Mexico, they will admit anyone into the hospital, but won't let you leave until you pay up, kinda wacky isn't it? So. I had a 5 1/2 hour surgery that included 4 different procedures ( I won't go into them for the sqeamish that may be reading), 2 nites in a private room and many meds. Total cost in dollars a little less than $3400 and that includes all followup visits! I think thats a heck of a deal! Of course if I had taken the time and paid the $300 a year for mexican insurance it would have been free!
Now I am home and bed bound for the next 2-3 weeks, my friends have been gathering around me more than I could have possibly believed, they have brought fresh fruit, salads, chicken, chicken salads, watered my plants, sent flowers, sent ecards and so many other things that I can't name it all! Next post I want to send out personal thanks to all, until then warm breezes and cold beers coming at you from the Yucatan, the most wonderful place in my world!
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