At this moment, the majority of new construction of condos in Mexico are bought for cash (from the buyers), and developers are building with these funds. Learn about the differences in new development projects in Mexico, US & Canada.
The concept of money laundering regulations goes back to ancient times and is intertwined with the development of money and banking. Money laundering is first seen with individuals hiding wealth from the state to avoid taxation or confiscation or a combination of both. In China, merchants around 2000 BCE would hide their wealth from rulers who would simply take it from them and banish them. In addition to hiding it, they would move it and invest it in businesses in remote provinces or even outside China.
If you are thinking of buying or selling property in Puerto Vallarta, Mexico here are the most important Spanish words you’ll need to know in real estate transactions.
Ejido: Farming land owned by a legal entity, or group called the Ejido. Collective land that can now be privatized. Foreigners cannot acquire rights to Ejido property. Through a proper process, the Ejido can sell to a Mexican individual. The Mexican can then sell to a foreigner.
Escritura Publica: The document issued by the notary to transfer ownership of property. The escritura is a public deed. If there is bank trust for foreign ownership it is described in the escritura. In the escritura the bank defines its authority and sets out its fees. The time to negotiate the terms of this agreement is at the beginning of the purchase process.
Insist on a comparative market analysis of the “solds” and a list of the competition on the market for any villa or condo you are considering buying. Don’t take no for an answer.
Although it is true that historically there has been a history of not recording true sales prices in the Mexican public registry, this doesn’t have to continue, and it is illegal. You, as a buyer have the right to information before you spend your money. Information of sold data: price, sell date, area, and if there is a mortgage, is important. Traditionally, seller financing commands a higher sales price. Some agencies do not show any properties for sale but their own.