Looks like we may actually be approaching a very close closing date on our condo! We have been advised to get a cashier's check made payable to our
developer, to take to the notario for the closing. We have also been told that we need to register this cashier's check when crossing the border. It
is for a very large sum of money. Do you know if we will have to pay any kind of tax at the border on this money? Or is it just necessary to
register it? I'm sure we will be advised, but am curious as to what you Nomads have heard or know. The Gull - 11-14-2009 at 09:47 AM
If they want to sell the property, tell them to meet you in San Ysidro. They will.DENNIS - 11-14-2009 at 09:47 AM
Never heard of anything like that. If it was cash, I wouldn't be surprised.woody with a view - 11-14-2009 at 09:49 AM
if it was cash i wouldn't mention to anybody that i was wanting to "register" it. you wouldn't make it to the first tollbooth.
i like Gull's idea.
You are supposed to declare $10,000 or more
Keri - 11-14-2009 at 09:55 AM
It is best to meet in San Ysidro as the Gull mentioned. Let them transport it. Another thought might be to do a wire transfer to their bank acct. but
I don't know if that's feasible,kbajaguy - 11-14-2009 at 10:08 AM
If they are up front and legit, they will accept a wire transfer, probably to a US bank. Will still probably need a CTR that the bank will fill out.SDRonni - 11-14-2009 at 10:19 AM
No, it's not cash.....it's a cashier's check made out to the developer's corporation.........we have to meet at the notario's office for the
closing.........the transaction of giving the check and signing over the property will happen simultaneously at the notario's office. Otherwise, we
would have to wire the money to the developer and then WAIT for him to receive it before he is willing to sign off.....something hubby is not willing
to do. Wants to hand the check over at the same time he signs off. Make sense?????bajaguy - 11-14-2009 at 10:37 AM
I would check with US Customs and determine if a "Cashiers Check" falls within their description of ........more than "10, 000 in cash"....that you
have to declareSDRonni - 11-14-2009 at 10:41 AM
Bajaguy,
Would I check with US Customs for taking the check INTO Mexico?norte - 11-14-2009 at 10:41 AM
As bajaguy said. check with Customs. I registered money taken out of country once and it is no big deal. They only want to track money laundering
which I assume you are not doing.SDRonni - 11-14-2009 at 10:45 AM
Thanks for the info. Nope, not laundering any money, just trying to buy this condo we've been waiting for for over three years! Now that the end is
in sight, we just don't wanna make any mistakes......do you register it right at the border where we had our FM-3's stamped the first time?bajaguy - 11-14-2009 at 10:45 AM
Quote:
Originally posted by SDRonni
Bajaguy,
Would I check with US Customs for taking the check INTO Mexico?
Yes, ma'am.......you have to report anything over $10, 000 (cash) leaving the US. Don't know if the regulations include a Cashier's
Check........again. I think I would set up a wire transfer to an Escrow account.......your seller should not have a problem with that......
And before you make the final payment.......is your "punch list" on the condo complete????.....everything done to spec and your satisfaction???SDRonni - 11-14-2009 at 10:48 AM
Bajaguy,
Yep, we've been "walking through" for the past several months and have even had ceiling fans/lighting installed. Had another U.S. developer go
through it with us and he was impressed with the construction and attention to detail. Now just have to have all the paperwork in order. Working
with our second attorney on this deal and it is good to finally see light at the end of the tunnel. We just may be able to enjoy this place a few
years before we croak, after all! Crazy that it is now finally happening.....right as the frantic holiday season starts!bajaguy - 11-14-2009 at 10:55 AM
Ronni:
Check this link under definitions.......I think your check qualifies under "Monitary Instruments"
After 5 years are still finding "little things" that need to be corrected by the builder.David K - 11-14-2009 at 11:00 AM
Don't $100 bills have chips so govt. satellites or those devices at the border can locate them?
Seriously, a wire transfer between banks has got to be the safest way... right?Tano - 11-14-2009 at 11:02 AM
Above everything else, keep in mind where the actual “transaction” takes place. If in Mexico, any problems that might arise will have to be resolved
under Mexican jurisdiction; if in the US, well, you know. I would consult with a competent attorney before sinking a lot of money into a deal of this
caliber. Do not lull yourself into thinking that nothing untoward will happen. Cover all your bases, but then, that applies to everything in life.
That’s why America got to be what it is, and other cultures did not.
¡Tengan cuidado!bajaguy - 11-14-2009 at 11:05 AM
Quote:
Originally posted by David K
........................Seriously, a wire transfer between banks has got to be the safest way... right?
..............
I would prefer a wire transfer to an Escrow accountDENNIS - 11-14-2009 at 11:09 AM
Just put the cashiers check in your pocket and go buy your condo. Why make problems for yourself?k-rico - 11-14-2009 at 11:48 AM
Quote:
Originally posted by DENNIS
Just put the cashiers check in your pocket and go buy your condo. Why make problems for yourself?
That's exactly what I did. Also, Bank of America made it very clear that cashier's checks are just that, checks. I had one made out to me by Citibank
that I took to BofA, my bank, and asked them to take it and make out one for the same amount to someone else. "No way Buddy, your check has to clear
first", says the bank manager. And this was when everybody thought banks were trustworthy, except bank managers apparently. They were worried it might
be a forgery.
I'd certainly understand the hesitancy these daze.
They are not as good as cash.
[Edited on 11-14-2009 by k-rico]noproblemo2 - 11-14-2009 at 01:51 PM
Do you have any neighbors at the condo complex that you can ask how their transactions were done?fdt - 11-14-2009 at 02:01 PM
Actualy, if you want to know what the law is:
- If you are carrying more than US$10,000, or its equivalent in other currencies, in cash, checks, money orders or any other monetary instrument, or a
combination of them, you must declare the amount exceeding US$10,000. You will not have to pay duties or taxes, but you must declare it on the Customs
Declaration form. Failing to declare it is a violation of Mexican Law and such violation is sanctioned with administrative and even criminal
penalties.
A cashiers check is a monetary instrument!SDRonni - 11-14-2009 at 02:45 PM
Thanks everyone for all your help! We will declare with US Border AND Mexican Border authorities.
At least some of the other neighbors there are using the developer's financing, so no large amounts of $$$ crossing the border.k-rico - 11-14-2009 at 05:24 PM
SDRonnie, don't forget about the IRS Form 3520. Whether or not you need to file is debateable, but look into it and decide for yourself.
[Edited on 11-15-2009 by k-rico]SDRonni - 11-15-2009 at 10:58 AM
Thanks, K-rico. Yes, looks like we'll have to file this one, too. Checked with a CPA and he said to not do so would be really risky. While I hate
jumping through all these hoops, we don't want to do anything foolish at this stage of the game. Too much to potentially lose. I don't know what it
is going to cost to file this thing and not even sure if Scotiabank (who hold our fide) will do the part they're supposed to do. We shall see.SDRonni - 11-16-2009 at 07:09 AM
Ferna, check your U2U.............BigWooo - 11-16-2009 at 07:56 AM
It's a bit late for SD Ronni, but for foreign real estate transactions, First American Title provides a reasonably priced way to have true "escrow"
services in Mexico. I didn't know about them when I did my Mexico transactions, but I recently used them in Nicaragua. Last year I sold a piece of
property there and used First American to control all the deposits and disbursements.
All deposits and payment are made to First American. They draft up an escrow agreement that sets conditions which must be met before money is
released to the Notario, buyer, seller, or any one else who may be receiving payments as a result of the sale. First American handles disbursing the
money...only when proof is provided that the conditions of sale have been met.
The cost for their services in my case was about $500.00 USD. It's protecting the buyer so they paid the cost.
Contact info:
First American Title Insurance Company
Sawgrass Lake Center
13450 West Sunrise Blvd., Suite 300
Sunrise, FL 33323
National: +866.680.4639
Fax: (954) 838-9228
Email: mexico@firstam.com
Tony Antón
Director General, México
1702 Kettner Boulevard
San Diego,CA 92101
T 619-615-0163
C 619-251-1688
F 866-695-6012SDRonni - 11-17-2009 at 05:25 PM
Well, here's what happened! Downloaded the form to be filed at the U.S. Border, filled it out. Went with our cashier's check to U.S. side of San
Ysidro. The CBP officer there said that we did NOT have to report the check! It was a cashier's check and, as such, could not be cashed by us. I
was so unsure about his answer (though he said he had 19 years' experience) that I wrote down his name! The information, even on the CBP website, is
so ambiguous! Sooooooooooooo, we went to enter Mexico, went into the "declare" lane, they took a copy of the check, copy of hubby's passport, we
filled out a little form and we were on our way to the notario's office. The deal is DONE, we are now the happy owners of our condo we have been
waiting for for oh so long! That balcony is just calling us to toast that ocean with a margarita! Can't wait! This has been a long 3+ years!
Thanks to all of you for the info!bajaguy - 11-17-2009 at 05:28 PM
Good on ya Ronnie!!!!!....Congrats on your new place.
Will you have a Nomad housewarming party between Christmas and New Years???Bajahowodd - 11-17-2009 at 05:29 PM
Oh boy. How great is that? Kudos to you guys. Buena Suerte.noproblemo2 - 11-17-2009 at 05:29 PM
CONGRATS & Welcome to BajaSDRonni - 11-17-2009 at 05:36 PM
Nomad housewarming party sounds great, but we will probably be out of town between Christmas and New Year's! Thanks for all the kind thoughts and
words! Greatly appreciated!Bajahowodd - 11-17-2009 at 05:39 PM
Seduced again.DENNIS - 11-17-2009 at 05:44 PM
I am so glad for you that it's over. I'm also so glad for you that it's just beginning.
Bienvenidos a Mexico...your new home.k-rico - 11-17-2009 at 07:59 PM
Hey Ronnie,
Check your fidi, are the annual fees stated in dollars and the allowable annual percentage increase tied to the peso inflation rate?
Bankers are scum the world over.
[Edited on 11-18-2009 by k-rico]
wire transfer
jkruk - 11-18-2009 at 06:56 AM
a wire transfer to the notario is also an option. I believe your bank will report it as necessary, the contractor will be paid by the notario.All will
be happy????MitchMan - 11-18-2009 at 03:31 PM
I used First American escrow service and was not pleased with them.
First of all, their title search isn't nearly as thorough as Stewart's title search. Stewart goes back as fas the the Mexican revolution, First
American doesn't go back that far.
The first American personnel in the Florida office were very nice and apparently accommodating, but when it came to actually reviewing all the closing
documents that it would require in order for them to be certain that all the criterion are met, they took a giant step backwards. They said that they
only were going to review a few items. Well, that isn't good enough for me. I mean, how can you be certain that all criterion are met if you don't
look at the all the documents? So, in order to protect my money, I had to pay a lawyer to be present at the closing in the notario's office to do the
actual checking of the documents and the entire transaction before I would make payment to the Seller's representative. Instead of using the First
American Escrow to hold and disburse purchase money funds, I wired funds from USA to a Mexcian Bank USD account and issued a check to the sellers from
this account on the day of the closing after my lawyer reviewed and witnessed all documents. I did open an escrow with First American Escrow early on
at the time I tendered the offer for the real estate and I paid them their $500 USD escrow fee and then deposited the 5% purchase money deposit with
them. But after I querried them in detail as to what documents they would review at closing, I was not at all impressed. I don't remember
specifically which exact documents they would and wouldn't review, but I do remember that whatever those documents were that they would review, they
weren't sufficient.
