Puerto Vallarta and Bay of Banderas Real Estate Round-table Featuring Real Estate Agents, Builders, Immigration Attorney and Local Vallarta Schools
A Guide to Purchasing a Home or Condo in Puerto Vallarta, Mexico
Listen to The Podcast
Hello fellow travelers, welcome this episode of the Puerto Vallarta Travel show. I am your host Barry Kessler and I am just so happy to be introducing you to my favorite vacation destination, and maybe even yours, Puerto Vallarta Mexico.
Subscribe in Apple Podcasts & iTunes & Leave a Good Review
Subscribe On Android Devices
Send Barry an Email
That music you were just listening to is performed by Alberto Perez, the owner of the La Palapa Group of Restaurants. Those are La Palapa, Puerto Vallarta’s Oldest Restaurant on the famous Los Muertos Beach, and The El Dorado Restaurant and Beach Club right next door so you can enjoy that fantastic view of the Los Muertos Pier all lit up at night in beautiful colors, or during the day in its grand splendor for breakfast, lunch or dinner, seated with your toes in the sand right at the water’s edge. It’s so romantic, it’s so, Puerto Vallarta my friends.
This week it’s the Puerto Vallarta Real Estate Roundtable 2020 with some great professionals. Damien Bassett of Coldwell Banker La Costa, David Pullen of Pullen Properties, Immigration Attorney Maria Lazareno of KL Mexico, Architect and builder Alejandro Loya Garcia from ALO Design, and my buddy Pancho Seaney our friend from Vallarta Factory, the place for Chocolate, Cigars, Coffee, Booze and great eats, he’s going to talk about the schools here in Puerto Vallarta. It’s a guide to those thinking of moving to paradise, but before that, very quickly, let’s see what’s happening this week in Puerto Vallarta, the 29th of April, 2020.
I want to make this part brief, because it can’t be all lock-down and Covid 19 news, but we need to talk about what’s happening in the town we love.
First, how are you? Hope you are all well and thinking about returning to Mexico when this is all over. Now, the town is in lock-down, till the 30th of May. Only essential travel to the store and market. Limiting one family member at a time. Those over 60 are required to stay home, and facemasks are required outdoors by everyone.
Vallarta Food Bank
Go Fund Me Page Vallarta Food Bank
Patreon Page Puerto Vallarta Food Bank
Facebook Site to Follow and Volunteer at the Vallarta Food Bank
As far as Vallarta Food Bank is concerned, they are now moving tuns, that’s right, tuns of food to their neighbors and there are many food banks trying to feed all these people who have been asked, well, ordered to stay home. So please, help Jimmy and Francie, the
two Francies’ and Vallarta food bank, and all their volunteers, and if you are in town, they can use your help if you want to get out and lend a hand. Just bring your masks and protective gear and I have links to the GoFundMe page, and a patreon page and their Facebook page in the show-notes, so give. By the way, Jimmy shaved off his beard and hair to raise $10,000 US dollars for the Food-bank. That and so much more.
Next week, I’ll have a live report from Jimmy. Give.
And like I said, if you have Mexican friends that you are in contact with, help them if you can. I have numbers and contacts too so I’ve had some of you ask for information and contacts of some of the folks I’ve interviewed over the years, so let me know if you need any contact information.
JR’s 80th Zoom Virtual Birthday Party
Last Saturday April the 25th was JR’s birthday. We had a virtual Zoom party for him and we had quite a group from all over the world. Mexico, Spain, All over the US and Canada. We’ll try to have another one soon so watch the Puerto Vallarta Travel Show Facebook page. Maybe next week we can talk about what stage in lock-down you are in.
Now, let’s talk about Real Estate in Puerto Vallarta, Mexico.
The Real Estate Buying Process in Puerto Vallarta
If you have been thinking about buying in Vallarta, now may be a good time to make a good deal.
- Nobody buying the new condos. The tourists have left…
- Investors may need to dump their rentals…..
- Buyers generally pull funds from 401k investments or home equity lines….
You may be able to negotiate a great price because many of the builders are in the middle of projects, and they need to finish them. They will be willing to take less profit, to cut their margin to make the sale and complete the project.
This may be a time to make that deal, but it also comes with risks like, if the project is not complete, will it get done and so forth and we will talk about that in the round-table. So before we get to that conversation let’s review the home buying process in Mexico. Everyone always asks me Barry, isn’t it true forigners can’t own property in Mexico? You need to be a citizen or lease it or something??? How can that be safe?
Well, it is safe if you do it the right way. First, no Ejido land. We have talked about that. Ejido land is nothing but trouble. We can talk about that another time. We’ve talked about it a lot in the past but if you want to look it up Ejido is spelled EJIDO. Let’s just say it’s not easy to get proper title to Ejido land.
Contact Information For The Puerto Vallarta Real Estate Round-table 2020
David Pullen Broker David Pullen Properties Puerto Vallarta, Mexico
- Website: www.davidpullenproperties.com
- Phone: 52 322 303 7090
- Address: Calle Mastil #2 Local 2-B Condominiums Marina Sol Marina Vallarta, Puerto Vallarta, Mexico
Damian Bassett Realtor Coldwell Banker La Costa Puerto Vallarta
- Website: https://mypvrealty.com/
- Phone: 52 322 111 3488
- Email Address: damian_bassett@coldwellbanker.com.mx
Immigration Attorney Maria Lazareno of KL Mexico
- Website: https://klmexico.com/
- Phone: 52 322 293 6570
- Address: Calle Francia 102 Colonia Versalles, Puerto Vallarta, Mexico
Immigration Attorney Maria Lazareno of KL Mexico
Alejandro Loya Garcia, Architect and builder from ALO Design, Puerto Vallarta, Mexico
- Facebook: ALO Home Design
- Phone: 52 322 158 5325
Pancho Seaney, Vallarta Factory, Puerto Vallarta, Mexico
- Website: http://vallartafactory.com/?fbclid=IwAR3_VqINUH4xOLqmstF68rVArb-t-eCgDKvYl8kLbAEVjvjLSOb7qlj75ko
- Address: Calle Libertad 100, Centro, Puerto Vallarta, Jalisco, Mexico
- Facebook: https://www.facebook.com/VallartaFactory/
Barry Kessler, Realtor Pinnacle Estate Properrties, Inc.
- Website: https://www.acaliforniadreamhome.com/
- Phone: 818-426-6415
- Email: barrykessler4homes@gmail.com
The home buying process in Mexico
As many of you know, I sell Real Estate in Los Angeles California, and I love my job. One day, maybe in the not too distant future I’ll be selling homes in Puerto Vallarta who knows. I’m in the process right now of becoming a Certified International Property Specialist as well as joining so, maybe some day, but today, I have a panel of Real Estate agents, an immigration attorney, a builder and someone to talk about the schools here in Puerto Vallarta.
It’s the Real Estate Round-table for the Bahia de Banderas 2020.
But before we get to our guests, let’s talk about buying in Mexico. The first question I get from anyone asking about buying a place in Puerto Vallarta is, hey, I understand you can’t own property in Mexico isn’t that right?
So, let’s talk about that, and let’s talk about the home buying process in Mexico.
For starters, anyone can buy property in Mexico but there are exceptions and restrictions. In 1973, Mexico passed the Foreign Investment Law allowing foreign investors to buy property anywhere in Mexico, with a exception of what are known as Restricted Areas, these according to article 27 of the Mexican Constitution include areas 100 KM from the international borders, and 50 km from the coast, inland. Foreigners are restricted from owning land directly in restricted areas, but the law does allow for a foreigner to hold property in restricted zones indirectly through a bank trust. In fact property can be held two ways by a foreigner, one, set up a Mexican Corporation, and the other, through a bank trust known as a Fideicomiso. A Fideicomiso allows a foreigner to hold property with all rights as a Mexican Citizen. You can transfer that Trust to another buyer, another foreigner through a sale, you can renew the trust after 50 years. You can transfer the trust to your family members when you die.
Fees range from $500 to $1,000 US dollars to set up a Fideicomiso, and about $500-$800 a year for maintenance fees from the bank.
For a corporation, it’s more complicated, the fees to set up the corporation, and there are a couple kinds of corporations you can set up, or a will cost around $2,800 US to set up, and about $800 a year for an accountant to maintain it with monthly reports on income and so forth. The reason you want a corporation to hold the property is if it’s investment property like a rental condo, or home, or a property for a business, or land you are planning sub-dividing. Then it may be a good idea to set up a corporation. If in doubt…like always…talk to a lawyer. A good Mexican Lawyer.
Find a Real Estate Agent and have them set up a search on the MLS.
So, what is the process? Remember purchases and sales are made in accordance with Mexican Law.
First find the home you love and make an offer. The offer should be written, and should include the purchase price, the good faith deposit to hold the property, which is usually 10% of the purchase price, you want to be clear as to when that deposit is at risk, and that deposit should be held by the sellers attorney or an attorney of your choice. If the seller requires it to be non-refundable, make sure it’s not more than you’re willing to lose.
The details of the purchase should include the details and time frames of inspections of the property. Who pays for what.
In Mexico, it’s really important to have your agent contact the selling agent, tell them they have an offer on the property, and insist on presenting the offer to the seller in person. Your agent should be presenting the offer. That way, the offer is presented clearly, with no outside hanky-panky from the selling agent and terms are clear between buyer and seller. Really important to have your agent do this.
Once the offer is negotiated and accepted, The deposit is made and a promissory agreement is drawn up, it’s called a (contrato de promesa). This sets up the time-frames, and a chance to solidify the terms of purchase, and binds both the buyer and seller to the terms now set forth in the promissory contract. And keep in mind, in Mexico, Under Mexican law, both parties are bound by the terms of the promissory agreement. If all the terms and conditions are met to satisfy the purchase contract, neither buyer nor seller can back out of the sale.
Now that the agreement is signed, the seller contacts your bank you have chosen to administer your trust, your fidicomiso, and this starts the trust application. Your notary then orders a trust permit from the Ministry of Foreign Affairs, and you are off to the races.
As the buyer, you don’t need a whole lot except for the money, You will need a passport, a driver’s license and a utility bill showing your address.
The buyer should hire inspections of the property by an expert in that field, there are good building inspectors in Vallarta including Alex Loya who you will hear on the panel. The inspection is done to alert the buyer as to certain defects, detrimental items that may lead to major or minor problems in the future, and checking out the basic. The electric, the plumbing and structural integrity of the house or condo. In the states, well, in California where I work, I tell my clients that just because your inspector points out issues and problems and concerns, homes are sold as-is in California as they are in Mexico. The inspection is just for your information and with that information, you decide if you want to go through with the purchase.
The way the Fideicomiso works is the Mexican Government issue a permit to a Mexican Bank of your choice, allowing the bank to act as Trustee for the property and naming you the purchaser, the Beneficiary of the trust holding title. The beneficiary rights are very similar to Living Wills or Estate Trusts in the U.S..
You will hire a notary or a real estate attorney to run the transaction. In many cases, a good notary will be all you need, but often times you might consider an attorney as well, to perhaps double check on the notary, or as someone to hold a deposit for example. At any rate, the notary will check title, check for encumbrances or liens on the property. Does the owner owe the government money for example, and does the seller actually have the right to sell this property, and so on. They will, if all is okay to sell, the notary obtains a certificate of no encumbrances, a certificate of no tax liability, and a property appraisal.
The Notary or attorney will work with your bank to write up your Trust documents, and finalize them.
By now, both should be able to execute the purchase agreement called a compraventa. Then starts the closing process, and transfer title of the property to the fideicomiso.
If enough time has passed, the bank office should have received the permit from the Ministry of Foreign Affairs. Your attorney or notary will be able to start to draft the documents for the closing deed. Your lawyer or notary, or both, along with a bank trust officer will then review the final draft of the deed.
First, to verify everything is correct and second, when all the closing paperwork is ready, you will get a notice of a due date and the final closing costs due. Finally, you will sign the deeds, payments will be settled, and the title transferred to the bank fidicomiso.
The notary then issues a notarized copy of the closing deed, which is your first proof of ownership and you can use it to put utilities in your own name.
Within 3 months of your closing date, the Public Registry issues the final deed. This will contain an electronic folio. In addition, a copy of all certificates, and payment of rights.
While buying property in Mexico, the delivery of your land and taking of title are different steps. They can take place on two different dates. This means you don’t immediately take possession of the property at closing.
Finally, do a walk-through to make sure that your property is being handed over in good condition before you take possession. Once you’re satisfied the property is in the condition it was purchased in, you’ll sign a delivery statement. This details the official delivery date of your property.
Keep in mind that your attorney or notary can handle a majority of the purchase process. So, you don’t need to be in the country for every step.
So that’s the process in a nutshell. If you have any questions let me know and I will be happy to expound or clarify the process but right now…let’s now get to the round-table.
Listen to The Podcast
All right….A long episode for sure but packed full of great information for those looking to move to Vallarta or invest in Puerto Vallarta Mexico.
Check in the shownotes for contact information for all of these wonderful professionals at www.puertovallartatravelshow.com.
Okay that should do it for this week.
Next week, stay tuned for more on the ground reports from Puerto Vallarta Mexico, with travel tips, great restaurant and excursion ideas and more. Until then, remember, this is an interactive show where I depend on your questions and suggestions about all things Puerto Vallarta. If you think of something I should be talking about, please reach out to me by clicking on the Contact us tab and sending us your message.
And remember, if you are considering booking any type of tour while you are in Puerto Vallarta, you must go to Vallartainfo.com, JR’s website and reserve your tour through him, right from his website. Remember the value for value proposition. His experience and on the ground knowledge of everything Puerto Vallarta in exchange for your making a purchase of a tour that you would do anyway, you’re just doing it through him as a way of saying thank you. It costs no more than if you were to use someone else so do it. Really. And when you do take one of these tours, email me about your experiences. Maybe you can come on-board and share with others what you liked or didn’t like about the tour. Again, contact me by clicking on the Contact us tab and sending off a message. Don’t forget his maps, his DIY tours and his revitalized Happy Hour Board. I have links to all of those in the show notes.
And once again, if you like this podcast, please take the time and subscribe and give me a good review on iTunes if you would. That way we can get the word out to more and more people about the magic of this place. Puerto Vallarta, Mexico. Remember I made it easy for you to do just that with each episode I create. But if you haven’t been to my website, you really need to have a look there. I have the links to the places we talk about, interesting pictures and the more all right there in my blog-posts and show-notes for each episode of the show so check them out for sure if you haven’t already all-right? All right.
Thanks to everyone on the panel, Damien Bassett of Coldwell Banker La Costa, David Pullen of Pullen Properties, Maria Lazareno of KL Mexico, Alejandro Loya Garcia from ALO Design, and Pancho Seaney from Vallarta Factory where you can get your chocolate, cigars, coffee, great drinks and good eats. I have all their information in the shownotes. Thanks for talking with us about the Real Estate market, the building process, Puerto Vallarta Schools and getting permanent or temporary residency, all the things you need to know if you are thinking about making a move to paradise.
Make sure to donate to Vallarta Food Bank!
And thanks to all of you for listening all the way through this episode of the Puerto Vallarta Travel Show. This is Barry Kessler signing off with a wish for you all to slow down, be kind and live the Vallarta lifestyle. Nos Vemos amigos!
Listen to The Podcast