GUIDELINES FOR SELLING A PROPERTY IN MEXICO
Obtain all documents necessary to write up a listing agreement and to take a listing.
They are as follows:
- Copy of fideicomiso / title / power of attorney
- Copies of ids of sellers, copies of ids of the POA’S.
- Copy of the official subdivision or the plan.
- Copy of the Mexican corporation if the property is in a corporation. If the property is in a Mexican Corporation then the Seller must show a working visa reflective of their corporation or must have a representative of the corporation that can sign on behalf of the corporation for any sale of property.
- Copy of the building permit and the manifestation of construction (if selling a house) to establish capital gains or losses. Seller must have this document to sell a house.
- Copy of the protocolization of the subdivision or the construction for the fideicomiso. If the Seller has an existing structure or has made a subdivision from the original parcel that was on the fideicomiso, then this change must be recorded by the bank before the Seller may sell the said property.
- A copy of the environmental impact study.
- A copy of an existing title search or title insurance policy if available
- A copy of the derecho de tanto (first right of refusal) and bank appraisal if originating out of the Ejido.
- A copy of any existing lien or bank loan if applicable
- A copy of paid property taxes from the municipal.
- A copy of the most current annual fideicomiso payment to the Seller’s bank.
- A copy of a US LLC (Limited Liability Corporation) or US trust if the property is held by an LLC or US trust (both should be translated into Spanish)
- A copy of the plans or blue prints for a house.
- A copy of any utility bill from the Seller’s primary residence in his/her home country that will prove residency.
- If any title holder or primary beneficiary on the trust has passed away, we need a copy of the will, a copy of the death certificate, and proof that this change has been recorded within the deed or the fideicomiso.
- Any other documents that would help prepare the seller for a potential sale and purchase offer agreement.
How Seller can be ready for a sale of his/her property:
- Seller must sign a listing agreement before we can start to market their property. Please remember that all signatures for all documents are to be identical to your passport signature (not name).
- Seller must make sure that all property taxes, annual payments on a fideicomiso, or corporate taxes are up to date before selling.
- Seller must understand that they are responsible for capital gains taxes, commission, property taxes, extinction of an existing fideicomiso (if the buyer does not require these as a means to close), being current on their Mexican Corporation, and any existing lien on property must be paid off before the closing on a sale.
- Will seller be present for closing? If not we need to prepare either a letter of instruction to the bank or a power of attorney, both of which must be notarized, apostilled with the original sent back via Fed Ex. There might be a time when the seller will need to make both documents depending upon which bank their fideicomiso is in.
- Seller must provide wiring instructions for their bank including bank name and address, account holder’s names, account number, routing number or Swift Bic Code. If the seller is a Mexican corporation then the funds must be deposited into their corporate account.
- The entire closing process usually takes between 60 (Sixty) to 180 (One Hundred Eighty) business days from the start to the day of signing. The 90% (Ninety Percent) balance for the property as well as the remainder of the closing costs will be sent by the Buyer and the Seller will need to pay any property taxes, fideicomiso annual payments, construction costs, and any other miscellaneous costs that must be paid before the closing. These costs should be sent via wire transfer 5 (Five) business days prior to closing.
- Two to three weeks before closing, the Closer will prepare disbursement instructions for Secure Title Latin America or Armour Secure. The Seller will provide their bank information and then all parties and representatives (including Power of Attorney, Corporations, or Living Trusts) must fill out the “Know Your Customer”, document for Stewart Latin America and return this document signed with the signed disbursement instructions.
- Constant communication with the seller during the listing agreement, the beginning of the purchase offer agreement and the closing process are essential. We will need the seller information regarding all general data for each seller as well all information that will go on the fideicomiso application.
- Please remember that all official documents from Mexico that are being signed in another country, will need to be signed in front of a notary and accompanied with a letter of Apostille from the State Department of the State where the document was notarized.