Things to consider when selling a property in Mexico …..

Timing is everything. Given the nature of the seasonal market in Los Cabos, once you have decided you are ready to sell your property it is important to establish how and when you wish to market it. The first step is to assess current market trends and where your property fits into the marketplace. This will determine the list price and best venues for marketing your property and when to put in on the market. Many aren’t aware that Los Cabos has its own MLS (Multiple Listing Service) similar to those in North America. Together with magazine publications, open houses and website advertising, the MLS is a wonderful tool to maximize exposure of your listing. There are also tax obligations to consider. Your property will be subject to capital gains tax and payment of real estate commissions. Currently, the capital gains rate for 2008 is 28% *. Certain deductions can be applied against your capital gains tax, namely, acquisition tax receipts from the time your purchased your property, facturas (legally registered invoices) for upgrades to your property, etc. In order to close a transaction in Mexico, there are certain requirements and documents necessary. As a rule, it takes a minimum of 60 days to close a real estate transaction in Mexico without financing. If the buyer is financing, allow for an additional 30 days for closing. Below is a list of documentation required for closing:

• Copy of your identification (passport and driver’s license)
• The Fedeicomiso or Escritura of the property (Trust)
• Copy of your acquisition of property fee paid when purchased
• Copies of any facturas (legally registered invoices) you have for upgrades to your property
• Receipt of payments of maintenance, home owners association fees, property management fees
• Copy of closing fees, notario fees, manifestation of construction and building permits
• Copy of last payment of bank trust fees and last property taxes paid

There are many people involved in closing a transaction in Mexico which you have the option to choose from including lawyers, notarios, administrators and banks in certain cases. In order to secure your comfort level and give you a step-by-step accounting from the moment of receiving an offer to purchase throughout the whole closing process, Dream Homes of Cabo has established its own closing company with in-house lawyers, administrators and closings agents making the sale of your property worry free.

For more information on selling your property, please contact me at angela@dreamhomesofcabo.com

* Capital gains tax rates are determined by the government and are subject to change on an annual basis