# buying property...



## anoutlaw (May 13, 2009)

If you want to buy land and it costs about 1,000,000 pesos how do you go about it? How did you do it if you have?

It is easy to buy if the money is in Mexico but what do you do when the money is in your account abroad?

Wire transfer to seller is not an option for obvious reasons.

The only option i can think of is wire transfer to ones own mexican bank. That way money will get registered in the systems as coming from account belonging to person xyz123 and being deposited to person account in mexico belonging to person xyz123.

Will this be an issue? I dont see why it would but i can imagine it could get flagged/delayed/hacienda gets tipped even though no reason for them to know etc.. etc..


Im sure others have been wondering the same


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## DNP (May 3, 2011)

anoutlaw said:


> If you want to buy land and it costs about 1,000,000 pesos how do you go about it? How did you do it if you have?
> 
> It is easy to buy if the money is in Mexico but what do you do when the money is in your account abroad?
> 
> ...


Smells like money laundering. You wanna be anoutlaw? Mexico's as good a country as any to get caught, do time, lose your money...

And you want advice!?

WashDC/SMA


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## sparks (Jun 17, 2007)

Check Intercam ... you can write a check on your home bank and they will issue you a cashiers check to deposit in Mexico


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## sparks (Jun 17, 2007)

DNP said:


> Smells like money laundering. You wanna be an outlaw? Mexico's as good a country as any to get caught, do time, lose your money...
> 
> And you want advice!?
> 
> WashDC/SMA


Nonsense !!!


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## makaloco (Mar 26, 2009)

anoutlaw said:


> The only option i can think of is wire transfer to ones own mexican bank. That way money will get registered in the systems as coming from account belonging to person xyz123 and being deposited to person account in mexico belonging to person xyz123.


That's exactly how I did it in 2006, and there were no delays or other problems. Since the transfer put my Mexican bank account balance substantially over $USD 10K equivalent, I had to report it to the US Treasury using the FBAR. Once the money arrived, I had my Mexican bank issue cashier's checks in pesos to give the sellers at the closing (this was at their request).

DNP, why do you think this could be viewed as money laundering???? There was a pretty hefty paper trail on the US end.


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## conklinwh (Dec 19, 2009)

We actually did 1m peso land purchase in 2009. We did wire transfer from our US bank to Actinver Lloyd(others use Intercam). Cost me $15USD at home bank. It was treated as domestic wire transfer as went to Actinver account at BofA for further transfer to our Actinver account at no charge. We had learned that could transfer to a dollar account and work with our bank officer to maximize the conversion rate. 
Also, seller definitely did not want in cash or check but rather a wire transfer to their account.


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## La Paz (May 16, 2011)

anoutlaw said:


> If you want to buy land and it costs about 1,000,000 pesos how do you go about it? How did you do it if you have?
> 
> It is easy to buy if the money is in Mexico but what do you do when the money is in your account abroad?
> 
> ...


Whether a fideicomiso is required or not, you need to have a Notario involved for several legal aspects associated with a land sale/purchase. The land needs to transfer away from the seller's name & into the buyer's name, property tax responsibility has to be transferred from seller to buyer, proof is required that property taxes are paid in full through the closing date, as well as documents dated less than 30 days prior to closing from Ayuntamiento stating there are no existing liens or encumbrances on the property which much be legally cleared prior to sale. 

You are mistaken, there *IS* a need for Hacienda to be in the loop, a legal requirement in fact. The buyer is legally responsible for acquisition taxes (was 2% of the sales price the last time I bought land in Baja) & the seller is legally responsible for capital gains taxes, if applicable, based on specific circumstances at the time of sale.

Laws & rules are in place for the protection of both buyer & seller in a transaction, it's to everyone's benefit to know, respect & adhere to these laws. This is the Notario's function, they know all the legalities for any type of transaction. 

makaloco is correct if you are a US citizen the TD F 90-22.1 (FBAR) must be filed for the appropriate tax year anytime you have $10,000.00 or greater on deposit for *any* length of time outside of the USA.

It is possible to have a wire transfer set up in advance, to be transferred directly to the seller at the time of signing at the Notario's....my buyer set it up this way & called his bank from the Notario's office to release the transfer at the moment of signing. But there has to be a lot of trust & faith on the seller's part....the buyer could be calling his bookie!


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## anoutlaw (May 13, 2009)

DNP said:


> Smells like money laundering. You wanna be anoutlaw? Mexico's as good a country as any to get caught, do time, lose your money...
> 
> And you want advice!?
> 
> WashDC/SMA


I know its not the best nickname to have but hey, dont go assuming all kind of things based on a nickname. By the way DNP 2,4-Dinitrophenol is a deadly diet drug.


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## anoutlaw (May 13, 2009)

sparks said:


> Check Intercam ... you can write a check on your home bank and they will issue you a cashiers check to deposit in Mexico


Thank you for sharing but i dont think it is an option for europeans but will look into it.


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## anoutlaw (May 13, 2009)

makaloco said:


> That's exactly how I did it in 2006, and there were no delays or other problems. Since the transfer put my Mexican bank account balance substantially over $USD 10K equivalent, I had to report it to the US Treasury using the FBAR. Once the money arrived, I had my Mexican bank issue cashier's checks in pesos to give the sellers at the closing (this was at their request).
> 
> DNP, why do you think this could be viewed as money laundering???? There was a pretty hefty paper trail on the US end.


Thank you,

Cashier checks are the best to use once everything is signed and FBAR is for us citizens which i am not. but my country may have something simillar but fairly sure they dont.


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## anoutlaw (May 13, 2009)

La Paz said:


> Whether a fideicomiso is required or not, you need to have a Notario involved for several legal aspects associated with a land sale/purchase. The land needs to transfer away from the seller's name & into the buyer's name, property tax responsibility has to be transferred from seller to buyer, proof is required that property taxes are paid in full through the closing date, as well as documents dated less than 30 days prior to closing from Ayuntamiento stating there are no existing liens or encumbrances on the property which much be legally cleared prior to sale.
> 
> You are mistaken, there *IS* a need for Hacienda to be in the loop, a legal requirement in fact. The buyer is legally responsible for acquisition taxes (was 2% of the sales price the last time I bought land in Baja) & the seller is legally responsible for capital gains taxes, if applicable, based on specific circumstances at the time of sale.
> 
> ...



Thank you for the indepth information, all good to know. When i mention hacienda i was thinking more in general terms. Such as the case of simpy transfering from my own account abroad to account in mexico before initiating transfer of property etc..


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## La Paz (May 16, 2011)

anoutlaw said:


> Thank you for the indepth information, all good to know. When i mention hacienda i was thinking more in general terms. Such as the case of simpy transfering from my own account abroad to account in mexico before initiating transfer of property etc..


Hacienda would not be in the loop for an incoming money transfer....they're only concerned with taxable transactions....bringing your own money in is not taxable....but they'll move really close to the front of the line as/when you begin to spend it. :wink:


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## DNP (May 3, 2011)

anoutlaw said:


> ... By the way DNP 2,4-Dinitrophenol is a deadly diet drug.


What's that supposed to mean? Some kind of threat?

WashDC/SMA


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## Guest (Sep 24, 2011)

I think it's time for you to have a cocktail and chill out, DNP.


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## DNP (May 3, 2011)

GringoCArlos said:


> I think it's time for you to have a cocktail and chill out, DNP.


Probably. Cheers!

WashDC/SMA


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## anoutlaw (May 13, 2009)

DNP said:


> Probably. Cheers!
> 
> WashDC/SMA


I was just tryig to show that usernames are usernames and nothing more 

Cheers,
:tea:


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## FHBOY (Jun 15, 2010)

*Buying Land vs. Buying A House*

OK - now I'm confused. When we wish to purchase a house, and I know that the majority of homes purchased in Mexico are for cash, not financed, how do y'all suggest we go about it [getting payment to the seller]? 

Is buying a house different than purchasing land?


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## La Paz (May 16, 2011)

FHBOY said:


> OK - now I'm confused. When we wish to purchase a house, and I know that the majority of homes purchased in Mexico are for cash, not financed, how do y'all suggest we go about it [getting payment to the seller]?
> 
> Is buying a house different than purchasing land?


Easiest question first....no, the exact same process applies for both casa or unimproved land purchases.

The terms & conditions that buyer & seller agree to can be unique & varied....but I've made 3 land purchases & all of the sellers wanted cash in full, handed over at closing. As a buyer, I'd never expect a seller to carry any of the balance. As a seller, I carried the balance plus interest once....would NEVER do it again! 

The majority of people I know have the funds wired into their own local account, which leaves the funds & disbursal amount & timing totally in the buyers hands. In my personal experience, doing business with Mexicans is totally different than doing business with fellow gringos; just as the typical sales/purchase process is different here than where most of us originated. First-time buyers in Mexico are very leery of the fact that Mexico doesn't deal in escrow accounts & typically, the seller will expect as much as 50% down....50% down going directly into the seller's hands versus 5-10% earnest money going into escrow is difficult for a first-time buyer to feel comfortable with & rightly so....but it's the norm!! Please understand that all my experience in buying property (3) & selling (2) have been in Baja, and I acknowledge that local practices can vary by region & local customs. However, in my experience, whatever terms & conditions the buyer & seller agree to, the Notario will incorporate into the legal closing documents, so it'll be legally binding for both parties.

Interestingly enough none of the people I've bought property from were willing to deal in anything but cash (no local personal check or bank check)....and this after I'd put 50% down....cash....in their hands! I could have read that as a lack of trust on their parts....I choose to read it as standard local practice for this area.

As a buyer, I personally have never left the Notario's office at closing without having paid in full for property I've purchased from a Mexican. I have left closing with monies owed to me by ****** buyers. One buyer called his stateside bank at the moment we signed & gave authorization for the funds to be released via prearranged wire transfer directly into my account, funds were received & available to me the next business day.

I guess the bottom line is you've got to go with whatever you're comfortable with. But I can pretty much guarantee that the process won't evolve like anything you were used to in Kansas, Toto!

More than you asked for, but not nearly all you'll need to know! :nod:


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## conklinwh (Dec 19, 2009)

So far, we have only been buyers. Notario is certainly a critical piece. 1st thing that we learned is that shopping for a notario is really key. The buy/sell of property can be a real culture clash and you really need a notario that has been successfully involved in the process, hopefully multiple times.
Traditionally Mexico has been a cash transaction society. Our sellers by the way stressed that they much preferred wire transfer because of the cash transfer restrictions. We've also been told that mortgages are becoming more affordable, not sure if a good thing, and Scotia Bank has been specifically mentioned.


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## RVGRINGO (May 16, 2007)

The previous post explains the situation quite accurately. However, our first home purchase in 2001 was easy; we shook hands, got an agreement drawn up, I handed over a personal check for a deposit, to the Mexican seller and moved in. We closed the following week with a second check.

When we sold that house, and bought the next one, it was done through a pair of real estate offices and was not as efficient. There were omissions and errors to correct. However, the realtors had banks in the USA and the money was handled through them. I had 'change' coming and took a check from the realtor.


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## bigfootbill (Feb 2, 2011)

Try to make the purchase with your 401 as the owner via Entrust Inc
B


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## TundraGreen (Jul 15, 2010)

To add one more experience:

When I bought, it was much like buying a used car. The title (escritura) was exchanged for cash. The seller and I shook hands on a price, then I found a Notario Publico who drew up the escritura. I got a release from the Secretaria de Relaciones Exteriores. The only hang up was that there turned out to be 5 owners. So the Notario got all five signatures on the Escritura then showed me the signatures but kept the escritura. Then I transfered the money from my account to one of the owners (with their agreement that one could receive the money). We both had accounts in the same Mexican bank. When the owners confirmed to the Notario that they had the money, the Notario released the escritura to me.


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## FHBOY (Jun 15, 2010)

Based on the collective knowledge is that we establish an account at a Mexican bank for a major financial transactions such as property or a car, so that money can passed directly, correct? 

 Other threads have mentioned Mexican banks only as a convenience, but not a a main depository for SSI or pension/annutiy remittances [better a US/Canadian bank] with a US/Canada address and an ATM card.

OK - wow this Forum is great for getting information - thank y'all.


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