BAJA REAL ESTATE
Possibly, the biggest decision you can make when planning to build in Mexico is choosing a realtor. Sounds exaggerated? Think about these facts: realtors are not licensed in Mexico. They don't go to school to learn their trade. Any one with proper visa or citizenship can call themselves a realtors.
Realtors are under no obligation to disclose problems with the property. In fact,they don't have to disclose whether you are purchasing proper title.
Some old houses have pipes too small to pass toilet paper. You could be faced with significant costs to upgrade the plumbing.
There are real estate organizations that brokers and agents join to create an air of credibility-these are not licensing agencies. It is smart to ask agents how long they have been in the business-how they were trained etc.
A quality realtor I spoke with, advised that you to seek title insurance when making a purchase. He also suggested you find an inspector when buying. Mexico is attempting to replicate as much of the title processing procedure we are accustomed to in the US. One needs to realize that Mexico has only been selling land and homes with the Fedeicomiso system, to non-citizens, since the 90's.
Thank Pancho Villa
Pancho Villa helped make it possible for foreigners to own land in Mexico.
When Pancho was only 16 years old, in 1894, he came home from working the fields. The hacienda owner intended to have sex with Pancho's 12 year old sister. Pancho grabbed a pistol and shot the man.
Pancho fled to the mountains and began a life of defending the peasants against the hacienda owners. He spent much of his time reallocating land and stabilizing the economy.
After the Mexican Revolution (1910-1920) the ejido system was re-initiated. Land was expropriated from the wealthy landlords by the Mexican government. Petitioners for the land were allowed to farm the properties. The government gave them seed and equipment to aid in the farming.
Prior to the 1990's the land was divided into ejidos. At that point the Mexican government fell on hard times. President Clinton loaned Mexico several billion dollars. The government realized it couldn't afford to continue providing financial help for farmers anymore. The ejidos were given to large families in each area of Mexico. They were allowed to sell this land and the proceeds go to the family members of the ejido. In Todos Santos there are 256 families involved. Thousands of ejidos exist in Mexico.
When property is sold, all families receive a share and sales tax numbers are issued. Property taxes in Mexico are not excessive. Of course taxes on unimproved property is taxed at a lower rate. For this reason, many homes have not been completed.
Buying and building in Mexico could be one of the most exciting and rewarding occurrences in your life. Or, it could be a nightmare from hell. There are great many decisions to be made in a highly recommend you get the services of a very good quality realtor. One that understands permits. Mexican laws and all the steps necessary in the purchase process. That beautiful piece of property on the ocean can end up being excessively expensive to access.
When we bought there was no roads to the property. We had to have faith in our realtor and developer, that we were getting good property.
As it worked out our partial was too narrow to include the size of pool we needed. Our developer managed to acquire 10 more feet at a nominal price, to accommodate our pool.
You will find a great deal more information about buying real estate in Baja by registering and receiving our Baja Escape E-Book.
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