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MexLaw

MEXLAW > MexLaw (Page 9)

Important Considerations of the Construction Contract

Whether you are hiring a contractor for new construction or a renovation project in Mexico, it is imperative to have a contract with your contractor. Construction contracts are designed to establish the obligations between a builder and an owner of a property concerning the execution of work. Its primary purpose is to determine the price, terms, and the manner in which work must be carried out according to the conditions agreed in the contract. The construction contract between individuals is regulated by the Federal Civil Code and the commercial code. Before proceeding with a construction contract, it is important to consider some...

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The Condominium Regime in Mexico

What is the condominium regime and why is it important? The condominium regime is a document granted by a Notario Publico and recorded in the Public Property Registry, and until the developer has received the regime, the new buyers do not have legal title to the property. In some instances this process can take up to six months. Once the state and local municipalities approve the project, the regime is the legal approval issued by the government. The regime contains the rules and regulations of the development. It also includes the legal documents of the property including location, description and measurements of...

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You Have Purchased Property in Mexico, What’s Next?

The most critical points that must be considered after purchasing a property in Mexico include: Getting Possession of the Original Title Deed Get that title deed in your hands; five to six months after both parties sign the title deed, your lawyer or the Notary must provide you with the original title deed. The original title deed includes the boleta de registro with the folio number; this document guarantees the title deed has been registered in the Public Registry of Properties. In their files the last information will be the transfer of rights in favor of the purchaser. Annual Payment on the...

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Real Estate Purchase and a Bank Trust Assignment of Rights

Foreigners buying property in the restricted zone of Mexico are required to purchase through a (fideicomiso) bank trust. In some cases, the buyer will take over an existing bank trust. This is known as an Assignment of Rights (Cesion de Derechos) and depending on the amount of time left on the existing trust, you may be advised as the buyer to take over the trust rather than pay set-up costs to create a new trust. In order to create a new trust, there will be added fees and the cost of extinguishing the current trust. Anytime a person accepts to carry...

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Take Advantage of Discounted Property Taxes (Impuesto Predial)

By owning property in Mexico, you already enjoy a lower cost of maintenance and taxes, but did you know you may take advantage of further discounts by prepaying your Impuesto Predial? January is tax time for property owners in Mexico; property tax Impuesto Predial is calculated in the first two months of the year. Discounts are available if you pay your property tax in full before the due date. The percentage of the discount may vary from state to state and from year to year, ranging from a 5% to 20% discount depending on when you pay your taxes. In Quintana...

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