BUYING REAL ESTATE AT OCEAN DELRAY

A. Whether you purchase real estate in the U.S. or Mexico, Espiritu Los Cabos recommends Title Insurance for every property you purchase. We insure our cars, homes and our health — it is just as important to insure one of your largest investments: your property. Title Insurance is available for properties in Mexico purchased by U.S., Canadian and Mexican citizens. Fact: Just because you have a trust does not ensure you have free and clear title. Title insurance is a necessity. Fact: In a Espiritu Los Cabos property search, the property’s title is searched all the way back to the Mexican Revolution. Most trust-securing title searches only go back to one or two owners of record.

A. In the trust document, the Purchaser must name the Beneficiary or foreign Owner of the property. The purchaser can be an individual, multiple partners, a foreign corporation, an estate trust, a living will, or another entity. The Trustee of the trust (the Mexican bank) will take direction from whomever you name as the Beneficiary. Note: You may legally name a U.S. corporation as the Beneficiary of the trust.

A. The Notary will calculate the Seller’s capital gains tax based on the purchase price, in Mexican Pesos, at the time of acquisition. This information is indicated on the deed of title. The notary then adds to the Seller’s original purchase price the cost of any construction or remodel (original facturas/receipts required) as well as the closing costs the Seller paid at the time of purchase. After applying annual inflationary credit and construction depreciation factors, the resultant cost basis is determined. The Notary then determines the capital gains tax (ISR) by subtracting the cost basis, as well as the sale’s commission from the sale price, to obtain the ‘gain’, which is taxed at 35%.