Moving to Baja Full/Part Time Should we? How to Do It? Moving Furniture, etc...

Old 09-27-10, 11:56 AM   #1
Santiago
 
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Default Newbie ? regarding buying Baja land

These questions arose from a discussion we were having about buying property in Baja; none of us have gone through the fide process yet.
1. Person A, not a Mexican citizen, wishes to buy a building lot from person B who is a Mexican citizen.
2. Person B completely, fully and unambiguously owns said lot and the lot is fully recognized by all Mexican authorities as a legal lot. Not in fed zone, or Ejido land, or a subset of a larger parcel etc, etc. Taxes are current.
3. What EXACTLY is the first document that is used to bind both parties? Another way of asking this would be at what point can neither party legally back out of the deal?
This would correspond to an accepted offer in US
4. Typically, when does the seller get their money, only at the end or in stages?
5. Typically, when does the buyer take possession, move trailer on, start construction etc.
Are # 4 & 5 above at the discretion of the parties?
6. Does the money go THRU the notario or does A give money directly to B?
7. Doesn't the notario collect the deed from B and give it to the bank that A has selected to use for the fide?
8. We think that we know some A's who have given all the money to their B's, moved in and started improving the place but are still 'working' on the fide. Who actually owns the place during this process of getting the fide? Who pays the taxes?
Thanks
Old 09-27-10, 12:11 PM   #2
noproblemo
 
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Default Re: Newbie ? regarding buying Baja land

My suggestion is to get a good Notario and go thru them. For your own peace of mind.
Old 09-27-10, 12:12 PM   #3
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Default Re: Newbie ? regarding buying Baja land

These are all questions that should be answered by the real estate attorney they hored (hired) to represent them. They do have one working solely on their behalf, right???

.
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Last edited by BajaGringo; 09-27-10 at 07:11 PM. Reason: Legs caught me...
Old 09-27-10, 12:44 PM   #4
Santiago
 
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Default Re: Newbie ? regarding buying Baja land

No, these are hypothetical, no one is doing anything other than just a discussion. However, we do know people who are 'buying' a house, living in it but haven't got around to getting the fide completed. We were simply wondering if the seller or buyer could back out of the deal at that point or who exactly owned the place.
Old 09-27-10, 01:18 PM   #5
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Default Re: Newbie ? regarding buying Baja land

1-2. I bought my property under similar circumstances (from Mexican owners), but it was a house, not just a lot.
3. There was a purchase/sale agreement (promesa de compra-venta) which my RE agent submitted with my deposit on the property and the seller signed acceptance. As I recall, I'd have forfeited the deposit if I'd backed out after they'd signed, and if they backed out, I'd have gotten it back. No idea how this compares to the US.
4. Apart from the deposit, they got their money all at once, at the closing in the notario's office.
5. I took possession immediately after the closing. Permits are needed before starting construction (depends on location).
6. I paid directly with cashiers checks made out in the seller's name. The notario didn't handle the money in any way.
7. No. The fideicomiso acts as a new deed that supersedes the old deed in the seller's name. They turned their deed over to me.
8. Not sure, but my guess would be that B (seller) still officially owns it. I wouldn't have turned over the money before having the fideicomiso.
Old 09-27-10, 02:25 PM   #6
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Default Re: Newbie ? regarding buying Baja land

Quote:
Originally Posted by BajaGringo
These are all questions that should be answered by the real estate attorney they hored to represent them. They do have one working solely on their behalf, right???

.
Sorry BG.....I HAD to capture your typo in a quote before you came back & caught it! In my personal experience, most (but certainly not all!) Notarios are pretty nice & I wouldn't be referring to them as Ho's!
Old 09-27-10, 04:30 PM   #7
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Default Re: Newbie ? regarding buying Baja land

Hos indeed!
Old 09-27-10, 04:46 PM   #8
longlegsinlapaz
 
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Default Re: Newbie ? regarding buying Baja land

Santiago, now that I got picking on BG out of the way.....

I've bought 3 pieces of raw land over the past 11 years. None were Ejido, two fronted the FMZ, all had title issued in seller's name at time of sale.

Casa #1
Seller asking $40K USD....I offered $35K....we split the difference at $37,500 USD. $10K USD down upon signing purchase/sales agreement, $27,500 USD at closing within 2 months.

Casa #2
Seller asking $250K PESOS, I said I'll take it....seller tried to raise price, I held him to the price he quoted me 4-5 hours earlier. I paid 50% upon signing Purchase/Sales Agreement & paid balance at signing of fideicomiso in Notarios office. I took possession of property at that time. Back taxes were owed on this property, but I paid them to allow the sale to move forward & turned the paid tax receipts over to the Notario at signing & they reduced the balance due to the seller by that amount. Seller brought original title to the Notario's office & presented it to me when they received final balance. Time-frame offer to closing approx 6 weeks.

Casa #3
I paid 50% upon signing Purchase/Sales Agreement & paid balance at signing of fideicomiso in Notarios office. Seller brought original title to the Notario's office & presented it to me when they received final balance. Property became mine at closing. Time-frame offer to closing approx 2 months.

#3. Signing of Purchase/Sales agreement. Either party can back out prior to signing. After signing only if the other party tried to renege or misrepresented something that would affect the terms & conditions of the original deal.

#4. I've always put sizable amount down....50% on last 2 purchases....kinda as a sign of good faith that I really wanted the property & wasn't planing on backing out of the purchase agreement. Amount of down is totally negotiable, but Mexican sellers I've bought from have typically ask for a minimum 50%.....or more!

#5. Only after final signing at Notarios does the property legally change owners. This is a legal issue & the signing date will be held off if buyer & seller have mutually agreed upon a date 60/90/120 days after signing the Purchase/Sales Agreement. In other words, Notarios will not schedule signing until the date the seller is actually releasing the property to the buyer.

#6. Money is handed over directly to the seller in the Notario's presence, they wait until the amount is verified or in the case of cash, the money has been counted.

#7. Evidently not, because the Notario was physically present in both instances when the seller handed the original title over to me.

#8. I believe, IF you've stated an accurate representation of the facts....the property, including any improvements the B's have made would legally belong to the original seller! I strongly recommend that you strongly recommend to the A's that they hightail it back to the Notario's office & get that fideicomiso finalized & signed. Typically, the most common thing that delays a final signing for any length of time is an unresolved legal issue with the property itself. If the seller backed out at this point, for whatever reason, or worse, if the seller dies, his heirs would inherit the property & the A's would be screwed! Taxes are the responsibility of the legal owner....in this case, the seller....if final signing has truly not occurred!

Hypothetical B is in a great position!! And were there any witnesses to handing all the money off? Signed documents, showing the amount has been paid in full? Hypothetical A is in a really (hypothetically) sucky position!

Old 09-27-10, 07:16 PM   #9
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Default Re: Newbie ? regarding buying Baja land

I still recommend to everybody thinking of buying property to rent first to get to know the area to make sure it is a good fit. That will also give you a chance to get to know the people and especially potential neighbors who are the best source for any "chismes" about the property / seller which could lead to potential problems. Once you feel good about going forward I always tell everybody to go into the deal only if represented by a real estate attorney (ho) who will protect your interests. It is a few hundred dollars very well spent and happy endings are a sure bet!

There are some very good points / tips offered here in this thread based on experience as well...
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