Real Estate
ADVANTAGES OF THE BANK TRUST
- Allows the property owner to hold the property in perpetuity.
- The bank trust is a 50-year trust agreement that is renewable every 50 years by you or your heirs by simple request. The renewal procedure is an automatic administrative task.
- The Bank Trust can be held by one or more individuals of foreign citizenship or by an entity such as an LLC, Living Trust or a Family Trust (IRA fund contracts would be subject to extra administrative and legal requirements).
- You can transfer your rights in the bank trust to another foreign buyer.
- One contract can hold more than one property in the same deed but the investments must be located in the same jurisdiction.
- You can enjoy, use, rent out, improve upon the property, expand, build and sell the Mexico Real Estate and reap 100% of the profit.
- The trust can also be inherited by your family or any person by simply naming them in the Bylaws of your contract as secondary beneficiaries in the event of your death. This chapter is the only one that would be subject to be modified in your deed as many times as required however, changing the owner’s names or adding additional owners could be done but not as simple as it happens with the beneficiary chapter, this last subject would require the performance of a new sale procedure and to draft a new deed (new closing costs would be involved as well).
- The beneficiary chapter will substitute the need of drafting a Mexican will; no need of passing probate before any Mexican Court would be required plus there is no inheritance tax in Mexico.
- There are tax advantages pertaining to capital gains taxes when you sell. The big del in Mexico is that, you would be able to claim a 100% Capital Gains exemption and without paying double taxes in the US nor in CANADA. This means that, once you sell the property and if you are eligible to exempt capital gains, you can collect 100% all your profit without paying capital gains in Mexico nor in the US or Canada.
- The bank trust is easy to maintain by paying an annual fee to the bank that is around $550 to $600 USD (please consult with us). The annual fee can be paid in a local bank or via domestic or international wire transfer.
- Your property cannot be taken from you for any reason as long as you use it for residential purposes, and you can treat the property as if you held the title yourself. The bank trust will act as a safeguard for your property ownership. Renting out your property and generate profit is 100% authorized and you are very welcome to do it.
- You must follow special rules and regulations when holding a property with an area exceeding 2,000 Sqm (21,527 Sqf) specifically, a commitment letter of investment would need to be submitted to the Ministry of Foreign Affair Offices.
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You are purchasing residential property held in a private deed.
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You are assigned with a certain delivery date in your sales agreement and the developer / seller honors such obligation strictly.
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The developer / seller has a Condo Regime Deed, Property’s ID and Property Tax Payments fully processed and available at least 3 weeks before you are called to take formal possession of the unit
If the above-mentioned items cannot match in time, you will be free to take physical possession of the unit first and to initiate the procedures to take title at a later stage and when point 2 is fully accomplished.
The time frame that might elapse between taking possession and taking title, is a subject that must be always discussed with your sales agent / developer or seller and preferably to be consigned in your sales agreement so you can be fully aware and certain of your rights as a purchaser of property in México.
Such documents -- (for each buyer) -- include scanned copies of:
- Passport (front page)
- Drivers’ license
- Copy of a recent utility bill showing your home address (preferably showing your name also)
Once our staff will collect all of the buyer’s and seller’s information and once the initial payments have been made – closing costs —, we will start the process with the Bank Trust by ordering the Permit from the Secretary of the Foreign Affairs Office. This process takes approximately 10 business days. During this time the attorney will also be starting the processing and collection of all permits, municipal and state certificates needed for the closing.
When the Trustee Manager has received the permit from the Secretary of Foreign Affairs Office, your lawyer will then start the drafts for the actual closing deed. The final deed will then be reviewed by the three legal groups working for you – the lawyer/closing attorney, the Public Notary and the trust area of the bank. This works to ensure that everything is 100% correct.
When all of the closing paperwork is ready, you will then be notified of the actual date of closing.
Normally, the total closing costs, including legal fees, the fee to set up a bank trust, all payment of rights, certificates and transfer tax, will run approximately between 5% to 7 % of the purchase price.
Please provide with the purchase price of your Unit and one of our closing attorneys will make a calculation-example for you.
FOR MORE INFORMATION, PLEASE CONTACT US AT
Phone
+52 (984) 266 2437
WhatsApp
+52 (984) 266 2437
Email
info@housecaribbean.com
Office
Plaza Progreso Carretera Federal Puerto Juárez-Chetumal MZ. 293 LT. 1, 77710 Playa del Carmen, Q.Roo, MX
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