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Title Transfer (up to 60 Days)

Title Transfer (up to 60 Days)

Fourth – Title Transfer (up to 60 Days)

The buyer and seller submit all necessary documents to the Closing Company, Closing Officer, and/or Notary to complete the Transaction File, which will be submitted to the Notary and Trustee Bank. This includes all information needed to follow the established timeline. The Closing Officer, Closing Company, and/or Law Firm in charge of closing will provide the Notary and Trustee Bank with the Transaction File, which includes all requirements for the Notary to proceed with the transaction. The Associate Attorney and the Notary will be available to answer any questions from the buyer, seller, or their respective counsel at any time.

The Notary will calculate an estimate for Capital Gain Tax for the seller’s review, this is usually done before the offer is accepted. Taxes are calculated based on the value of the seller’s purchase (cost basis) and the sale price of the property, considering the estimated peso value of the USD value at closing (Capital Gain tax or ISR for 2019 is 35% of the profit or gain in pesos). The Notary’s office will prepare Trustee Bank Instruction Letters for both the buyer and seller to sign. These letters notify the Trustee Bank that the property has been sold, the terms of the sale and acquisition, the appointment of the Notary as the official overseeing the sale, and also provides a proxy for one of the Associate Attorneys in the Notary’s office to sign the deed of title on behalf of the buyer and seller at closing, so neither the buyer or seller needs to be present. These letters will be submitted to the parties with instructions on how to comply with Mexican Law, including apostilles, notary in the US, Consular Certifications, Translations, and others.

The Notary, Closing Company, or Law firm will request the Foreign Affairs Permit (FAM or SRE Permit) from the Ministry of Foreign Affairs, which is a requirement for any foreigner purchasing property in Mexico. The Notary will prepare the Deed of Title held in Trust (Trust Deed) for the Trustee Bank’s review, as well as the buyer and seller. The Trust Deed, also known as a Fideicomiso, is the ownership mechanism for foreigners (non-Mexican citizens) in Los Cabos, as well as all coastal and border areas of Mexico. The appointment of the Trustee is generally determined by the Notary and will often be the same Trustee as the seller for cost and continuity reasons. The Trustee’s only responsibility is to hold the Trust Deed on behalf of the Beneficiary Owner(s) and to act in accordance with their instructions. Property held in trust is not considered an asset of the Trustee Bank in accordance with Mexican Constitutional Law. If there is an existing Trust, then an assignment of Beneficiary Rights can be prepared. If the Purchaser is Mexican, then the cancellation of the Trust and if both are Mexican is a Deed Transfer. Upon review and acceptance of the Trust Deed, as well as closing documentation requirements, the Trustee will authorize the Notary to execute the Trust Deed with the Parties or their authorized Proxy(s).

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