Blog | Monday, August 19, 2024
4 Real Estate Facts You Won’t Learn From Your Realtor
Ready to wake up in a sunny, seaside oasis every morning? You can live life on your terms in sumptuous, spectacular style by making a move to the luxurious East Cape. It’s located just minutes from Los Cabos along Baja’s iconic stretch of paradise.
When it comes to navigating real estate in East Cape, there are some things your realtor won’t be able to tell you.
Read on for four fascinating real estate facts you need to know for a smoother international home-buying (and moving) experience.
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Your dream home might not be on the market yet
The first thing you need to know about real estate in East Cape is that the hottest properties may be yet to come.
Make sure you have someone on your team with experience and knowledge about your non-negotiables and local real estate trends before starting your search.
The fact is, you need a local contact who has their pulse on the most current, up-to-date market information. They will also have the scoop about properties that may not officially be listed yet, but will be soon. Or, they can point you to luxurious properties where you can build and customize your own Private Villa.
Have you seen everything currently for sale, and nothing checks off all of your boxes? Be patient and take advantage of connections you have in the area–through your realtor, or otherwise.
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Getting to know your new neighbors has benefits
Introducing yourself to those individuals or families residing in your desired new neighborhood can be invaluable.
Not only do they actually live in the spot you seek–whether it’s as a primary residence or second home– but they’ll have insider information about local day-to-day living, as well as annual celebrations, events, and cultural happenings in the area.
They can also advise you on safety tips, and thoughts on local schools, or shopping, dining, and entertainment recommendations.
Speaking of safety, they can keep an eye out for your property in your absence (a favor you can reciprocate), and even recommend moving companies or staff to employ at your estate.
Establishing a friendly relationship with your neighbors creates an opportunity for a mutually beneficial relationship that can extend long beyond signing on the dotted line.
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Foreign homebuyers have additional hoops to jump through
Of course, this information will come out as you go through the actual real estate transaction. However, it’s helpful to know what to expect before the process begins.
Do your due diligence and review the following factors. You’ll need to know these things before sitting down to sign on the dotted line.
A notary public is necessary
In Mexico, a notary public is required to purchase residential property. Although it may initially seem like a hassle, the presence of a notary public provides numerous benefits to you as a foreign homebuyer.
Utilizing a notary public ensures all of the proper steps are taken to procure your property. For instance, they will guarantee that the transaction meets all legal requirements and follows all Mexican real estate laws.
They’ll prepare and finalize documents, and see that the property is transferred correctly.
Furthermore, a notary public can ensure that the property is free of any liens or other encumbrances prior to purchasing.
If your real estate professional does not recommend a notary public for your use, you may locate and secure one of your own choosing.
Title insurance
Obtaining a title insurance policy is another smart move to make when shopping for real estate in Mexico–especially as an expat.
In the event that the residential property you want to buy does have a lien, title insurance will protect you. This helps with other potential pitfalls that might incur; such as lawsuits or future monetary losses.
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According to Mexican laws, location matters
Before kicking off your Los Cabos home search, brush up on the basics of residential property zoning laws in Mexico.
A property’s exact geographical location, as well as its history, may bring about unexpected baggage. So there are some extra precautionary steps to be taken.
International borders or beachfront property
Is the residential property you’ve got your sights set on is within 62 miles of an international border or 31 miles from a coastline? You’ll need to acquire the property–which is considered to be in a restricted zone–through a third party.
In Mexico, this third party is known as a “fideicomiso,” or a real estate bank trust.
The purpose of a fideicomiso is to establish a trust agreement between you, the foreign buyer, and the seller. Through the agreement, the bank takes on a fiduciary role on behalf of the buyer.
When the transaction has been completed successfully, the buyer retains all ownership rights to the property. Including the right to sell, lease, or leave the property to their heirs.
As a foreign homebuyer, you can expect to pay a one-time charge to establish the trust, followed by a yearly maintenance fee for the trust, which is usually calculated based on a percentage of the property’s value.
Ejido property
Some prime, beachfront properties in Mexico may actually be Ejido land.
Ejido land is communal agricultural land, usually granted to an indigenous community, that combines shared ownership and individual use.
Over the years, Ejido land, initially not considered to have great financial value, has become highly sought-after, waterfront property.
Currently, foreigners cannot buy Ejido land–only Mexican citizens can do so.
While there are a few exceptions or loopholes to this rule, expats that do find a way to purchase property on Ejido land may still be subject to a transaction that’s not totally secure.
Mexican homebuyers who wish to buy property on Ejido land are required to obtain full approval from the community members, document the separation of their property from the greater Ejido land, and convert that parcel to a freehold title in a complex, multi-step process.
Put your newfound knowledge about real estate in East Cape to good use by purchasing a piece of property with lavish, laid-back sophistication at Casa Blake. The free-spirited soul of Costa Palmas, Casa Blake homes are located at the water’s edge in the mesmerizing Marina Village. Step outside your door and immerse yourself in opportunities for premier shopping, fine dining, and first-class amenities all around you.
