Udeserve, a referral company

26/04/2023

https://www.vallartadaily.com/puerto-vallarta-shine-in-the-2023-conde-nast-traveler-readers-choice-awards-nominations/

Puerto Vallarta (PVDN) - Guadalajara and Puerto Vallarta, two of the most visited destinations in Jalisco, have recently been nominated for the 2023

14/09/2022

https://www.vallartadaily.com/be-aware-of-vacation-rental-scams-in-puerto-vallarta-on-facebook/

A group of friends originally from Zacatecas planned a dream vacation in Puerto Vallarta, through Facebook they found the publication of a house with a

14/07/2022

Gotta love PV!

The natural beauties and various attractions that Puerto Vallarta has, represent a magnet for film and television production companies, an industry that

23/06/2022

Great article!

https://banderasnews.com/cost-of-living-a-great-reason-to-move-to-puerto-vallarta/

14/05/2022

Interesting article.

Due to its location, which connects the south of the American Continent with the United States, Mexico is a transit country for foreigners, but it has

13/05/2022

Our new promo! Welcome to our paradise! 😎 https://www.youtube.com/channel/UCIzlCKK7A_qD9-1Cf14P86w

19/01/2022

On Real Estate in Puerto Vallarta. Part 8. "What Did I Buy?"

You are now the proud owner of the beneficial rights of a trust, the body of which is the property. Think of a glass of water – the glass represents the trust and the water is the property. You have complete control of the glass. Same thing with a trust – you control it completely. You can sell the property, rent it, gift it or lend it – just so long as whatever it is you are doing with it is legal. You will also be obliged to maintain it and pay property taxes. Property taxes are .08% of the assessed value – which was established when you purchased the property by way of the tax assessment appraisal that was registered with the assessment office (the ‘Catastro’). Property tax rates in Mexico are extremely low as they do not represent a significant source of governmental income and must be held to the lowest common denominator.

The trust has a 50-year lifespan. Unlike a lease, at the end of the 50-year period it will become renewable for a filing fee of approximately $1,000 US. Thereafter it is renewable in the same manner, for subsequent 50 year periods in perpetuity. The bank acts as trustee – most banks in Mexico have trust departments to manage trusts (fideicomisos). They charge an annual trustee fee of about $550US. The trusts in the banks are ‘off balance sheet assets’ in that in the event of a bank closure or dissolution (there has never been a bank failure in Mexico – ever), the trusts are not considered assets of the bank and would be assigned to another bank under the auspices of the Bank of Mexico.

When you sell the real estate, you will become subject to capital gains tax based upon your cost base – in pesos – in your deed, which was or should have been, your actual purchase price at the exchange rate of that day – and, the sale price. The capital gains tax at the present time is 36% of the gain and is subject to certain deductions, one of which is the real estate commission.

As of January of 2014, the government tax authority went digital and you are required to receive a digital factura (receipt) indicating the value you paid for the property. This receipt will come via e-mail with two formats attached, a PDF and an XML document. Generally speaking, only the tax authority will have the software to read the XML document, but this is the one which needs to be safeguarded with your important documents so that it can be presented if and when you decide to sell, to be used as your proof of value for capital gains tax calculation purposes.

It should be noted that there is a process for exemption of capital gains tax. Your agent can provide that information based on the current laws in effect so that you could prepare for the likely event you would want to exempt in the future, keeping in mind these laws change and what might be applicable today may not be at some point in time in the future.

29/12/2021

On Real Estate in Puerto Vallarta. Part 7. "The Closing"

There is a saying in Mexico that next to God, the Notaries are the most important people in the country – and there are some that would even debate that! Notaries must pass the Mexican equivalent of the bar exam, they are then required to take two years of extensive study while practicing in a notary’s office following which they are subjected to a 3-day examination program and finally must be appointed by the state to a specific office in a city of which there are only a predetermined number of “notario” offices appointed. This is very different from the concept of a notary in the US or Canada. Notaries in Mexico are the only entities that are recognized by the Commercial and Land Registry and the taxation authority and they are empowered to collect taxes for all 3 levels of government.

At the appointed time, the buyer, seller and their respective agents will meet to ‘close’ – or as it is known in Mexico, ‘formalize’ the real estate transaction in the notary’s office. One can get a basic idea of the documentation required and the various entities that are needed in order to generate these documents.

Over the past 8 to 10 years, paralegal closing coordinator offices have opened that are typically owned and operated by ex-employees of notary offices, or fully qualified lawyers who specialize in Real Estate laws and transfers. The closing coordinators have the skill-set needed to prepare all parts of the required documentation and are fluently bi-lingual (which most of the employees of the notary’s offices are not). They perform a lot of the work necessary for the closing on behalf of the notary offices, and they are also able to explain important information and help the real estate buyer and real estate seller, along with their real estate agents, towards an orderly closing. In addition, they review the draft trust deed for approval by the trustee banks.

At the closing, the closing coordinator will also appear at the notary’s office and will usually walk through and translate the 40 plus page trust deed with the buyer and seller, answering any questions, should they so request.

Once the notary has stamped the trust deed, it will immediately be sent together with copies of the Certificate of No Lien and the preventative notice to the escrow company by the notary’s office. The escrow company will also receive a Letter of Disbursements signed by the seller and the buyer setting out exactly to whom and how much is to be wire transferred according to the detailed information set out in the Disbursements Letter. Upon receipt, the escrow company will execute the disbursements and funds are generally received by bank transfer that same day.

While the actual trust deed will not be presented to the Public Registry office for probably several days by the notary, everyone is protected from the possibility of any third party charges from being registered by means of the certificate of no lien and the preventative notice, both of which are generated by the Public Registry office at the same time. The preventative notice issued by the registrar freezes the title for a period of 45 days and is obtained at the same time as the certificate of non-encumbrance showing that the property is free and clear and is generally renewed at some time during the initial 45-day period for another 45-day period giving everyone sufficient time to close and present the trust deed for registration. The actual registration will take between 30 and 90 days and the buyer will be notified by his agent (typically) as to when it can be collected from the notary’s office.

15/12/2021

On Real Estate in Puerto Vallarta. Part 6. "The Closing Costs".

At this point, the agent and/or Closing Coordinator will provide the buyers, who will be responsible for 100% of the closing costs, as they pertain to the transfer of domain, with a closing cost estimate. It is an estimate because the exchange rate fluctuates in Mexico and it can have an effect not only on the fees and expenses but, more importantly, upon the value of the property which is often ‘sold’ in terms of US Dollars but always registered in Mexican Pesos.

The buyer will be asked to advance about half of the estimated costs to the notary to cover his out-of- pocket expenses, and the balance is usually paid through the escrow account and transferred to the notary at the closing.

The Closing Costs in Mexico consist of various fees and expenses and generally total between 3% to 10% of the actual purchase price (higher if there is a mortgage involved). These costs are always the responsibility of the buyer. (The seller will bear the cost of the real estate fees and his capital gains taxes, as applicable). The closing costs cover all costs associated with the transfer of domain except the cost of the escrow account and the engineer’s inspection.

• Transfer Tax
• Trust Permit and Foreign Investment Registry with Department of Foreign Affairs
• Trustee Bank Acceptance Fee
• Trustee Bank First Year’s Trust Fee (This fee is paid to the Trustee Bank every year on the anniversary date of the closing)
• Appraisal for Future Tax Assessment
• No Lien Certificate
• Preventative Notice Advice
• Registration Fees to Public Registry
• Notario Publico’s Fee

09/12/2021

For those of you who love architecture.

https://www.archdaily.com/973197/architecture-in-mexico-projects-to-explore-the-territory-of-puerto-vallarta

Puerto Vallarta is a city located in the state of Jalisco, in the west region of the country facing the Pacific Ocean. It consists of 1,301 km² and,...

01/12/2021

It's picking up!!!

During the past weekend, the Puerto Vallarta International Airport registered the arrival of approximately 22,000 visitors. During the past weekend, the Puerto Vallarta International Airport registered the arrival of approximately 22,000 visitors.

30/11/2021

On Real Estate in Puerto Vallarta. Part 5. "The Escrow and The Due Diligence".

The escrow deposit is managed by independent third party escrow company. The escrow protects all parties in the transaction and avoids the situation where an interested party, agent or other entity is charged with managing the deposit. For what are pretty obvious reasons, this is critical to any properly written real estate agreement in Mexico or anywhere else in the world. These deposits can accrue interest at the option of the parties. In the event of default or disagreement, the wording in the contract will take precedent; failing that or failing the ability of the parties to negotiate the disposition of the deposit between them, the matter will become the subject of a lawsuit – something that happens only in the most remote cases. There is a cost for the escrow which varies with each escrow company in Mexico. Generally, the escrow cost can range anywhere from $700US to $1,000US, depending upon the escrow company. These costs are often considered to be the responsibility of the buyer.

The real estate purchase agreement may often call for some points of due diligence – everything from boilerplate items such as copy of the deed and copies of the tax and HOA receipts, to a full engineering inspection. Built into the agreement, all due diligence items must be given a clear time frame and either stipulate methods to repair or provisions for cancellation in the case of catastrophic discoveries. Once the real estate due diligence items have been signed off, the agreement then becomes unconditionally binding for both parties and the closing process can begin.