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J.P.
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Location: Punta Banda
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Quote: Originally posted by DENNIS  |
Make sure you use a notario for contracts of any kind. All parties must be legal in Mexico if you expect protection in Mexico.
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There's Notario's and then There's Notarios there's only Two Federal Notario's in Ensenada.
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BigBearRider
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I'd use a reputable lawyer, and have the lawyer suggest a good notario. Where are you looking? Pescadero?
[Edited on 2-17-2017 by BigBearRider]
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pauldavidmena
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Location: Centerville, MA, USA
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| Quote: Originally posted by BigBearRider | I'd use a reputable lawyer, and have the lawyer suggest a good notario. Where are you looking? Pescadero?
[Edited on 2-17-2017 by BigBearRider] |
Yes, the house is in Pescadero, BCS.
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BFS
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You can purchase the home with owner financing in a trust that protects both the seller and the buyer, with all of the terms called out in the trust
and both parties appearing on the title document.
Once the seller meets all of the terms (payments over however many years are on the document) the seller is removed from the title. So yes it can be
done legally and safely. However many sellers are very hesitant to finance so the seller of this home may not be keen. The best way to find out is to
present an offer with your financing terms through your broker.
Good luck!
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pauldavidmena
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Location: Centerville, MA, USA
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| Quote: Originally posted by BFS | You can purchase the home with owner financing in a trust that protects both the seller and the buyer, with all of the terms called out in the trust
and both parties appearing on the title document.
Once the seller meets all of the terms (payments over however many years are on the document) the seller is removed from the title. So yes it can be
done legally and safely. However many sellers are very hesitant to finance so the seller of this home may not be keen. The best way to find out is to
present an offer with your financing terms through your broker.
Good luck! |
Our realtor has mentioned the concept of a Fideicomiso de GarantÃa, which sounds like the type of trust you're describing. I'm confident in
his ability to get the various parties and pieces together, but it's all brand new to me.
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Lee
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Posts: 3508
Registered: 10-2-2006
Location: High in the Colorado Rockies
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| Quote: Originally posted by BFS | You can purchase the home with owner financing in a trust that protects both the seller and the buyer, with all of the terms called out in the trust
and both parties appearing on the title document.
Once the seller meets all of the terms (payments over however many years are on the document) the seller is removed from the title. So yes it can be
done legally and safely. However many sellers are very hesitant to finance so the seller of this home may not be keen. The best way to find out is to
present an offer with your financing terms through your broker.
Good luck! |
I might do it this way. A Rent to Purchase Option Agreement. Small down, say $5,000.00 and monthly payments all of which apply to the purchase
price at the end of a year. At that time, a balloon payment for the balance is due. If you decide not to buy, seller keeps funds, you walk
away. If you do buy, pay off the balance with outside money.
As safely and legally you might be protected, you do not want to test the Mexican court system after hiring a lawyer.
Another option is an offer 20-30% below asking. Offer includes all furniture, and/or vehicles that might around. Pay cash with outside
money.
Find out what list price was a year ago. Might be time for a huge discount.
I advise not being a real estate partner with someone who has a lien on a property you've bought (owner carry).
Lastly, agent works for the seller and has a fiduciary responsibility (ha ha) to the seller. At least that's the way it should be. Seller is
paying the commission. No reason for you to trust the agent, ever, but anyone playing both sides is really not to be trusted.
US Marines: providing enemies of America an opportunity to die for their country since 1775.
What I say before any important decision.
F*ck it.
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J.P.
Super Nomad
Posts: 1673
Registered: 7-8-2010
Location: Punta Banda
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| Quote: Originally posted by Lee | | Quote: Originally posted by BFS | You can purchase the home with owner financing in a trust that protects both the seller and the buyer, with all of the terms called out in the trust
and both parties appearing on the title document.
Once the seller meets all of the terms (payments over however many years are on the document) the seller is removed from the title. So yes it can be
done legally and safely. However many sellers are very hesitant to finance so the seller of this home may not be keen. The best way to find out is to
present an offer with your financing terms through your broker.
Good luck! |
I might do it this way. A Rent to Purchase Option Agreement. Small down, say $5,000.00 and monthly payments all of which apply to the purchase
price at the end of a year. At that time, a balloon payment for the balance is due. If you decide not to buy, seller keeps funds, you walk
away. If you do buy, pay off the balance with outside money.
As safely and legally you might be protected, you do not want to test the Mexican court system after hiring a lawyer.
Another option is an offer 20-30% below asking. Offer includes all furniture, and/or vehicles that might around. Pay cash with outside
money.
Find out what list price was a year ago. Might be time for a huge discount.
I advise not being a real estate partner with someone who has a lien on a property you've bought (owner carry).
Lastly, agent works for the seller and has a fiduciary responsibility (ha ha) to the seller. At least that's the way it should be. Seller is
paying the commission. No reason for you to trust the agent, ever, but anyone playing both sides is really not to be trusted.
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Speaking as a former Broker R.E. Law is written to protect the unscrupulous acts of the Agency. NOT THE CLIENT.
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Lee
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Location: High in the Colorado Rockies
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One more thing. I know someone locally I'd hire as a Buyer Agent. Write the contract including your Agent's commission -- guessing the list
agent will have to split his commission. Whatever the split is, the seller pays the commission.
Personally, I would not buy in the Cerritos area. I'm biased.
And I'd only buy where I had water and power. That would be a deal breaker.
US Marines: providing enemies of America an opportunity to die for their country since 1775.
What I say before any important decision.
F*ck it.
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pauldavidmena
Super Nomad
Posts: 1715
Registered: 5-23-2013
Location: Centerville, MA, USA
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| Quote: Originally posted by Lee | One more thing. I know someone locally I'd hire as a Buyer Agent. Write the contract including your Agent's commission -- guessing the list
agent will have to split his commission. Whatever the split is, the seller pays the commission.
Personally, I would not buy in the Cerritos area. I'm biased.
And I'd only buy where I had water and power. That would be a deal breaker. |
This particular property is in Pescadero Heights and has both power and water. I'm not against being off the grid in principle, but I'm thinking that
any sort of adventure should wait until I'm living in Baja full-time.
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mtnpop
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Location: Colorado/mulege
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Keep in mind that any changes to a Fidei, there is a fee of some kind to do so...
So if you pay off the loan and you need to get the seller's name off the fidei, there will be a Notario fee....
This is what we have experienced in the past, Have friends that needed to get a spouse name off and the fee was almost like getting a new fidei.
Might just be the Notario, but just be aware..... and if the seller should go to tthe happy hunting ground before paid off then signiatures might be
a problem....
Does not work quite like the old title insurance system up north....
It might work out for you or others may have had better experiences than many we know of...
Common sense is a flower that doesn\'t grow in everyone\'s garden.....
A wise man once spoke nothing.....
Never kick a cow chip on a hot day!!
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pauldavidmena
Super Nomad
Posts: 1715
Registered: 5-23-2013
Location: Centerville, MA, USA
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| Quote: Originally posted by mtnpop | Keep in mind that any changes to a Fidei, there is a fee of some kind to do so...
So if you pay off the loan and you need to get the seller's name off the fidei, there will be a Notario fee....
This is what we have experienced in the past, Have friends that needed to get a spouse name off and the fee was almost like getting a new fidei.
Might just be the Notario, but just be aware..... and if the seller should go to tthe happy hunting ground before paid off then signiatures might be
a problem....
Does not work quite like the old title insurance system up north....
It might work out for you or others may have had better experiences than many we know of... |
Given that the seller has moved back to the States on account of health issues, the whole idea of a joint fideicomiso made me a bit apprehensive. This
is why we're leaning toward a home equity loan and are exploring that avenue in parallel.
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MitchMan
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Posts: 1856
Registered: 3-9-2009
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Lee is spot on. Didn't realize that the seller is an American until your last post; thought it was a Mexican fee title holder. I wouldn't trust a
Mexican fee title holder to abide in good faith to a complicated transaction involving carrying back a loan. Even a lease to buy arrangement wherein
you pay $5,000 USD up front doesn't seem very safe.
One big caveat that I religiously abide by now, after all my experiences in Baja over the last 12 years is "Do not pay for anything up front" in
Mexico.
Suppose your seller decides not to sign anything or deliberately neglects to do anything at all when it comes to the time when you want to go forward
with the actual purchase; what are your options then? He still owns the property and has possession of your $5,000. Your legal remedies would be
very expensive and take a long time to resolve, if in fact they could actually be resolved. Jurisprudence for a foreigner is not what it should be at
all, not even close to that in the USA. If you are going forward on the assumption that forcing contractual compliance in Mexico as a foreigner is
the same as it would be in the USA, well, it is not even close. Not to mention that you probably need a Residente Permanente visa status to enforce
contractual rights in Mexico. I have been told by legal representation that a visitors visa does not entitle you at all to legal Mexican rights.
This is something that Americans that have an interest in Mexican real estate via a fideicomiso should understand.
You cannot enforce your rights in a fido unless you are a Residente Permanente. An FMM visa is just a "visitors" visa and doesn't entitle you to the
protection of contractual rights in Mexican courts in the holding of an interest in real estate via a fideicomiso.
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pauldavidmena
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Location: Centerville, MA, USA
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@MitchMan - You have a good point regarding legal standing in Mexico, as we will be coming in under an FMM for the next few years at the very least.
The way I see it, I have two issues - not being able to be in Mexico for more than a week or so per year, and not having ready access to enough cash -
with the same root cause, namely that I haven't retired yet, and I don't have a job that would allow me to work remotely for long stretches of time.
The question is whether or not the issues are enough to be deal-breakers.
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MitchMan
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I have had a vacation home in La Paz for about 9 years and I go about every other month for about 2 weeks at a time. That has worked for me as a home
owner their (fido). The trick is to have a home near the airport and to be in such a big city as La Paz that has everything that a home owner needs
within 3 miles of the house. I originally wanted a place in Loreto, but I do not know how that would have turned out as flights there are not cheap
nor are they as regular as they need to be for me and I am not so sure about the ability to address maintenance issues there, not to mention other
things like supplies and food availability at competitive prices and good variety. Cost, supply and maintenance availability, and competitive fight
prices are all important for an absentee owner like me. La Paz does the trick on all counts.
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