BajaNomad

Selling home and FM3

Tod - 2-3-2011 at 07:01 PM

Hello,

So, I know it is required to have your FM3 as a homeowner (I do have mine this question is for a friend who does not). When you go to sell your home what are the repercussions of selling without your FM3, if any.

Thank you!

DENNIS - 2-3-2011 at 07:08 PM

I've never heard of any. I doubt it's an issue, especially if the seller plans to leave the country.

CortezBlue - 2-3-2011 at 07:28 PM

As of Aug or Sep Mexico has changed some laws and do NOT recognize FM3's as a document for proof of primary residency. You now must have an FM2. My neighbors in SF lived in their home for 8 years as permanent residents and had an FM3. They sold in Sept and the Notario informed them that would have to pay 25% of the SALES total, not of the profit. They we about ready to renew their FM3 and the Notario told them if they had an FM2 they would have a one time exclusion. Luckily they were able to get the FM2 in time to not get stuck with the 25% or about $66K.

I wish I had more info about the change, but it was either Aug 18 or Sep 18 that was mentioned as the date of change.

Maybe someone else has some info on this.:wow:

bajatravelergeorge - 2-3-2011 at 08:25 PM

Quote:
Originally posted by CortezBlue
As of Aug or Sep Mexico has changed some laws and do NOT recognize FM3's as a document for proof of primary residency. You now must have an FM2. My neighbors in SF lived in their home for 8 years as permanent residents and had an FM3. They sold in Sept and the Notario informed them that would have to pay 25% of the SALES total, not of the profit. They we about ready to renew their FM3 and the Notario told them if they had an FM2 they would have a one time exclusion. Luckily they were able to get the FM2 in time to not get stuck with the 25% or about $66K.

I wish I had more info about the change, but it was either Aug 18 or Sep 18 that was mentioned as the date of change.

Maybe someone else has some info on this.:wow:



How many years do you have to have your FM3 before you qualify for your FM2? What if you sell before you qualify for a FM2? What if you just have a vacation house and just use a FMM? It doesn't make sense that you lose a third of the selling price! If its true, we need to start making big noise. This would be a huge ripoff! :(

UnoMas - 2-3-2011 at 09:47 PM

None as I know right now, might change next week. I keep mine just in case they change the rules in my favor. Welcome to Mexico and have a nice day.:biggrin:

Bajatripper - 2-4-2011 at 11:56 AM

Quote:
Originally posted by morgaine7
Here's an article from last year that sheds some light:
http://internationalpropertyjournal.com/blog/2010/02/25/112-...

Kate


Good article. Thanks, Kate

Hook - 2-4-2011 at 12:07 PM

That article poses almost as many questions as it attempts to answer.

Is it just me, or does it always seem like the notarios in the San Felipe area are always quick to interpret new laws in their financial favor? And often, no other part of the country is doing it in the same manner.

25% of the SELLING PRICE, NOT THE PROFIT................HOW CROOKED IS THAT???

[Edited on 2-4-2011 by Hook]

akshadow - 2-4-2011 at 12:59 PM

I believe there are no Notarios in San Felipe, but that you go to Mexicali. It is quite possible they think US americans should pay as much as possible.
I assume many sales of "leased" houses never show up. It seems there is no real information on what happens when funds change hands and the new "owner" gets a new lease from the Mexican land owner.
Does anyone know what happens or is supposed to happen with these lease changes
Quote:
Originally posted by Hook

Is it just me, or does it always seem like the notarios in the San Felipe area are always quick to interpret new laws in their financial favor? And often, no other part of the country is doing it in the same manner.

25% of the SELLING PRICE, NOT THE PROFIT................HOW CROOKED IS THAT???

[Edited on 2-4-2011 by Hook]

DENNIS - 2-4-2011 at 01:39 PM

Quote:
Originally posted by akshadow
Does anyone know what happens or is supposed to happen with these lease changes




Nothing, really. If your landlord is honorable, he just makes up a new lease for the new tenant and life goes on.
In fact, there is no issue since the house on lease land actually belongs to the landlord. He's just letting you use it even though you did build it. He could easily have you dispossesed.
That's the advantage of wood frame houses. BURN BABY BURN.

Dave - 2-4-2011 at 02:37 PM

Quote:
Originally posted by akshadow
I assume many sales of "leased" houses never show up. It seems there is no real information on what happens when funds change hands and the new "owner" gets a new lease from the Mexican land owner.
Does anyone know what happens or is supposed to happen with these lease changes


Homes on leased land are sold as personal property and do not qualify for a homestead exemption.