Q&A / FAQ
How do I list a property for sale with Ajijic Paradise?
Listing your property for sale with Ajijic Paradise is easy! Want to learn more about the process? Feel free to reach out for additional information.
What visas options are there for living in Mexico?
Visa and residency options vary based on your specific circumstances. Many expats opt for one of the temporary residency paths available which has the potential to lead to permanent residency or even Mexican citizenship in time. Please contact us for additional information.
Can Ajijic Paradise help me get my RFC?
In Mexico, RFC stands for “Registro Federal de Contribuyentes,” which translates to the Federal Taxpayers Registry. It is a unique tax identification number assigned to individuals and businesses for tax purposes. The RFC is used in various financial and administrative transactions, and it is essential for conducting legal and financial activities in Mexico. Contact us for help with getting yours set up.
Can I own property in Mexico?
Yes! Absolutely! Foreigners may obtain direct ownership with a direct deed of a property in the interior of Mexico. You can even purchase property on the coast, but it requires a bank trust with different documentation and fees.
Why do I need a Realtor?
The benefits of working with a Realtor is the relationship you and your Realtor establish and between the parties involved in the transaction – other brokerages, Notarios, developers and home inspectors. Your Realtor is knowledgeable about the obligations and responsibilities of both parties.
Why do I need a Notario?
A Notario is a highly qualified lawyer with a great deal of llegal experience. They are appointed by the State and legally responsible for many necessary types of documents. Realtors work with Notarios in all real estate transactions, helping to prepare or gather all required documents, of which there are many. All the involved parties are looking out for your best interests
If I am considering buying a home, how do I get my money into Mexico?
While you are at the bank getting Mexican pesos, go and talk to your friendly Bank manager. Mention that you may be considering purchasing a home in Mexico and need to know what the Bank’s rules and procedures are for
initiating wire transfers. Real estate transactions here require a minimum of a 10% initial payment. Money laundering rules between the USA, Canada & Mexico require full disclosure. Cash and cheques are not accepted. Only a wire
transfer will work. Your Bank will not initiate a wire just by you picking up the phone while in Mexico and requesting that funds be sent. Complete a form, or whatever instructions your Bank requires before you leave. Then when you are ready to make an offer, you will be able to contact your Bank and easily complete a wire request.
How much are Buyer’s closing costs?
We calculate between 3% – 3.5% of the selling price to cover Notario closing costs. They are an obligatory part of the legal process that allows a buyer to safely obtain property in Mexico. The largest of these fees are the land transfer tax, Notary fees and the appraisal. Keep in mind that this does not include pro-rated calculations for property tax, utilities, bank fees and, if applicable, homeowners fees and an inspection report.
Do I need a Mexican will if I own property in Mexico?
If you own property, vehicles, bank accounts, investments and such in Mexico, it is advisable to make a will, otherwise the Mexican government can become involved in the decision making regarding your estate. A Mexican will can be written as to not revoke your home country will, but rather recognize both. It can be quite challenging for your loved ones to deal with your estate if you do not have a Mexican will. When you purchase a home, there is an opportunity to add direct line beneficiaries to the deed. At the closing, consider having a will prepared as you will receive a discount.
When are my property taxes due and where do I pay them?
Your property taxes are due at the beginning of the year, but you have until the end of February to take advantage of discounts granted for prompt full payment. The municipal office for the Lakeside area is in Chapala. You will need to take a copy of last year’s predial. If you have a listing with us, don’t forget to send us a copy of the new year’s paid invoice so that we may properly calculate your closing prorations.
Is solar power available at Lakeside?
With an abundance of year-round sunshine, solar power is a logical alternative for power in Mexico and Lake Chapala has become known as “the solar capital of Mexico”. Solar energy has become very popular here and is
highly accessible as well as affordable. There are several solar panel providers at Lake Chapala as well as Guadalajara.
What costs do the Sellers pay?
In Mexico, the commission is paid by the seller. We usually charge a commission of 7% on houses with a value up to $300,000 USD. The commission is negotiable on houses above that value. Sellers are also
responsible for Capital Gains tax, if applicable. The Notario can help to reduce this cost. We recommend that furniture and vehicles be sold separately so that they are not included in the commission or tax total.
What is an RFC?
Registro Federal de Contribuyentes or personal tax number. You require one of these in order to claim exemption on the Capital Gains earned when you sell your home.
What is a CURP?
Clave Única del Registro de Población. This is similar to the Social Security number for US and the Canadian S.I.N. It is a
government issued ID number and is also listed on your driver’s license, Mexican residency visa and bank account. You need a CURP before you can get an RFC.
What is a finiquito?
This is a severance pay. When you sell your house, you need to sever any staff you may have hired – maid, gardener and such – and calculate their severance pay based on hourly wage and the years they have worked for
you. They are required to sign a letter stating that they have no claims against the seller. This is one of the many services we provide as part of the closing process. We just need the employee’s name, start date and the amount of
pesos you pay them per week. We will calculate and prepare all the documents.
What is CFE?
Comisión Federal de Electricidad is the electrical utility service. They bill every two months and you can pay online or at various locations such as OXXO, Soriana, or banks.
What is Telmex?
This is the telephone/internet utility service. It is a monthly bill that can be paid online or at various locations such as OXXO, Soriana, or banks.
What is SIMAPA?
Sistema Municipal de Agua Potable y Alcantarillado is the water utility service Your water and sewage service fees are due at the beginning of the year, but you have until the end of February to take advantage of discounts granted for prompt full payment. These fees are collected at the SIMAPA management office corresponding to your property’s village. If you have a listing with us, don’t forget to send us a copy of the new year’s paid invoice so that we may properly calculate your closing pro-rations.