Now that you are selling, it makes sense to prepare your title files in order to avoid unpleasant surprises.
*WARNING
Don’t wait until a prospective Buyer makes an offer. If there are issues to be addressed, deal with them ahead of time. Otherwise, you’ll lose time, effort and possibly even the sale!
Step 1
Verify that you have the following documents:
An official looking document which is stamped by both the Property Tax Department and the Public Registry Office. The public registry information will also indicate date of registration and book and page number. These stamps are generally on one of the last pages of the document.
*REMEMBER
Provide all documents, including:
Receipt of payment of Acquisition Tax.
Receipts of payment for Bank Trustee fees.
Receipts of payment for Property Taxes.
Receipts of payment for Homeowners Association’s fees.
Receipts of payment for Utilities.
What about outstanding utility bills?
Seller is responsible for paying for utilities to the date Buyer receives possession unless otherwise agreed. Unpaid utility bills may become a lien on the property.
Step 2
Estimate your Capital Gains Tax. It is always safe to estimate a tax of 30% of the entire selling price. It may be lower, however, if you can provide official receipts for deductible items. A copy of the deed with the stamps of the property tax department and the public registry office is required to make a more accurate estimate.
Please remember: Capital Gains Tax in Mexico is paid as follows:
25% of the amount of the transaction (no deductibles apply) or 35% of the difference between acquisition value and sales price, less allowable deductions.
Step 3
Instruct the Trustee Bank to transfer title to the Buyer or to the person(s) indicated by him/her.