Differences in buying real estate in Mexico

It was a culture shock for me at first when I moved from BC Canada as a licensed real estate agent to Playa del Carmen in 2003 to see the differences in how business is done between BC and Quintana Roo.

 

Now that I have so many years of experience as an owner/broker of a real estate company in Playa del Carmen, the practices are second nature.

However, I understand how foreigners feel when they cross the border and venture into the real estate market in Mexico.
It is our role to give you the education and information needed for you to make your own best decision when purchasing a property in Playa del Carmen or Tulum, Mexico.
 

What are some of the differences between buying real estate in Playa del Carmen and Riviera Maya Mexico vs buying real estate in Canada and USA?

First, it’s important to know who you are working with and how they do business in Riviera Maya.
How experienced is the agent? Do they work with a reputable firm? References? Are they licensed to sell real estate in Riviera Maya?
Many “agents” are independent, with no real estate education or training, no experience, and no understanding of the fiduciary duty to you the customer.
They are acting in their own interests, not yours. Be aware of this.
The laws, the culture, and the language are different.
Here are LivingRivieraMaya.com  we work in a Canadian model of real estate.
I am the broker of my company and I have 5-7 buyer agents working at the agency. They meet with me and I am responsible for their actions. They work for you the buyer with your interests at heart.
Since late 2014, there is a law in Quintana Roo that requires anyone selling real estate in any capacity should be licensed.
Since early 2016 I have license number 83.
In all Quintana Roo,  there are only about 285 licensees,  where there are about 2500 “agents”.
Most “agents”  have no training,  no education,  and little experience, yet many foreigners trust them with a big investment.
For an agent to acquire a license to sell real estate, there is an educational component of the license that takes several months to complete. Then there are steps of the government agency to become licensed. An agent must renew the license every year with 30 hours of continuing education!
This is one of the biggest differences in real estate in Quintana Roo and Quebec – the lack of regulatory enforcement of licensing.
Know who you are dealing with.
Next, the big difference is that there is NO central MLS where all properties are listed for all agents/ clients to search and see.
There are a million different agent websites, and it’s very confusing because you can see the same property listed 5 times at 5 different prices.
Keep in mind that just because you see it online does not mean its an accurate price or even that it is really for sale.
We have access to all the properties and can show you any listing by anyone.
We verify the true status of the property for you that saves you time money and energy.
There is a definite need to find and work with an experienced professional real estate agent when buying a home or a condo IN Playa del Carmen or Tulum or anywhere in Riviera Maya.
Another major difference is here in Mexico we are primarily a cash-based market.
Meaning the price you see is the price you pay in cash (wire transfer), from your own resources. No bank financing in Mexico for foreigners.
A very important consideration for owning real estate in Mexico is that the roles of notarios and lawyers are somewhat different.
Lawyers legally represent you at the purchase contract level and liase with the notarios throughout the closing process to ensure you receive a clear title.
Notarios, by comparison, are lawyers with many years of experience. Then there are specialized courses and exams for notarios. Once all that is passed, a notario may be appointed by the governor of the state. It is a lifetime appointment.  There is one notario for 30,000 in each location.
 
What makes the notario so special in any real estate transaction?
Notarios are the only authority that can create a new deed,  or convey deeds between parties. They are also the person to assess and collect and pay any capital gains tax for the seller. The onus is on the notario to pay capital gains tax, not the owner.
If I were an investor like you reading this,  I might be daunted by this information.
Rest assured,  that when you want to own real estate in Mexico, at LivingRivieraMaya.com, we have served customers like you to ensure you have a smooth enjoyable process. You will make a safe and secure real estate investment in Riviera Maya.
Judi Shaw
Owner/Broker
www.LivingRivieraMaya.com
1 604 628 7247 direct
1 760 994 1716
+(52) 984 116 3251 Mex cell

More than a Beach: The top 10 things to do in Riviera Maya

Cenote in Riviera Maya
As much as one enjoys going to the beach on vacation, sometimes it’s good to switch it up and experience something different. Maybe on a certain day, you are feeling a little sunburnt? The great news with the Riviera Maya is there is so much to see and do, that it is nearly impossible to experience it all. There are many activities that one can only experience in the Riviera Maya and that is what makes this place so unique. Let’s take a look at the top 10 things to see and do in the Riviera Maya when you want to switch up a beach day:

Continue reading

Benefits of buying a Re-Sale Property

We can show you any property that interests you in the Riviera Maya. There is no need to look with many agencies. We will show you any pre-construction new condo project, and any already built properties.
Most important is to find the right property, at the right price for you.
Often we see that resale properties, already built, are overlooked by our investors in favor of a buying pre-construction property.
Why?
Many people are pre-sold on the belief that pre-construction is “the best deal” out there.
However, this can often be a misconception. The savvy buyer understands the following:

  • There are great deals available on resale properties. Prices often can be lower than a pre-construction property.
  • It’s our specialty to know and show you the market.
  • Use of escrow when paying for a property means funds are protected.
  • No risk of paying a developer directly who might not complete a pre-construction project.
  • You know what you are buying, such as the condition, the colors, the appliances, etc.
  • With pre-construction properties, what if it does not turn out the way you thought?
  • Often resale properties are fully furnished, as added value.
  • Buying furniture can be considerably more expensive than anticipated for new construction.
  • Resale is ready for immediate personal use.
  • There is no waiting period for construction to finish as with pre-construction.
  • It has the HOA (homeowners association) established, you will know the cost of maintenance, pool work, yard work before you negotiate on the transaction.
  • It has a property tax value established.
  • You purchase in an established neighborhood. You know what is around you.
  • Streets, lights, neighborhood parks, and restaurants are established.
  • Resales offer a shorter timeline to close on the transaction,  get the deed from the
    notary and you get the keys. NO waiting time for those important items.
  • Bring your suitcase and open a cerveza. Turn-key ready.
  • You KNOW what you are buying. No mystery involved.

SOME THINGS TO CONSIDER WHEN BUYING A RESALE:

  • You will have to pay for it all time of purchase upfront, no payment plans.
  • You might want to renovate to your liking.
  • Hidden cost upgrades? Use Property inspection.

Ready to make an informed decision? Check out our Riviera Maya Re-Sale Listings

Tulum or Playa del Carmen as an Investment Option

You have picked two of my favorite places to invest in the Riviera Maya. Both are great investment opportunities for different reasons, and being in close proximity to either place, you can’t go wrong with investing in Tulum or Playa del Carmen. This article will show you the advantages of investing in Playa del Carmen and the advantages of investing in Tulum. Continue reading

Say Goodbye To Sargasso And Hello Again To Our Beautiful Beaches

For those of you who are unfamiliar with what Sargasso is, it is basically seaweed that has washed ashore. The seaweed is caused by climate change and different wind patterns. The warmer the water, the more the seaweed spreads around the Caribbean. Continue reading

Buying Real Estate in Mexico

PLEASE BE CAREFUL WHEN LOOKING TO PURCHASE REAL ESTATE IN MEXICO

Although having a real estate license IS REQUIRED in Playa del Carmen and all Quintana Roo, according to a law passed in 2015, it is estimated that only less than 1% of those who are selling real estate are licensed. Continue reading

Cancun again at the top of the list in 2018

It is no surprise that the fact that Riviera Maya real estate remains one of the smartest real estate investments available in the Americas is a direct result of the highly touristic nature of the area which spans from Cancun to Tulum, including Playa del Carmen, Puerto Morelos, Puerto Aventuras, and several other beachfront towns.

This year, Cancun maintained its position as the number one summer hot spot for US travelers, according to Airlines Reporting Corp. (ARC).

According to the aforementioned institution which keeps track of the number of tickets purchased for the top ten most booked destinations, Cancun came in first, as it did in 2017. Meanwhile, Orlando bumped New York out of its second-place finish last year as New York fell to third place.

Moving up in popularity this year is Las Vegas, jumping from sixth to fourth place. London held firm in fifth place, while Punta Cana, Dominican Republic dropped from fourth to sixth most booked summer destination. Seattle held its 7th place 2017 spot, while Chicago rose to eight most booked destination, bumping Honolulu down one notch from last year.

Los Angeles rounded out the top ten most booked destinations with the closing position.

Chuck Thackston, ARC Managing Director of Data Science and Research, said that overall, travel this summer is higher than last year, “reflecting the continued strong economic conditions.” He noted, “average ticket prices are also slightly lower in most cases, so taking a vacation continues to be a great value.”

As tourists continue to pour into Riviera Maya through the Cancun airport, smart investors purchase property in Playa del Carmen, Cancun, Tulum, and other towns in the area confident that the current trend will continue and ROI will remain very high.

What are you waiting for? Call us now for more information about buying property in Riviera Maya.