Every year, local and federal government’s requirements change. Different institutions request documents that were not necessary the previous fiscal year. In today’s Baja California Real Estate having the correct and updated documents for the property and for the owner(s) is almost as important as having a good marketing strategy, staging and desirable market point. ISR taxes for a person selling will start at 22% of the net gain in Mexican Pesos. Sellers have to have a solid tax strategy to reduce or even eliminate this impact.
Failing to have any of these papers ready might result in delaying of an operation, its collapse and or a bad rep for the property in the general market, keeping potential buyer’s and their agents away.
My personal strategy is to be in constant contact with the Top RE, lawyers and Closing Coordinators to update a questionnaire that I present to my sellers. Answering this questionnaire and providing the support information is how I guarantee that no legality will delay or stop the closing process.
The average time for a unit closing to be performed from the moment the original LOI is presented to the time escrow is disbursed and keys are delivered varies from operation to operation. Readiness of the parties is one very important element, however the more financial institutions (banks) are involved the more time a closing might take. I would say a healthy average time table to close would be 45 working days. However if both seller and buyer are working with different Fiduciary and Lending banks, the time might increase by half or even more.
Do not let the information from your friendly neighbors or social media deceive you.
Best advice as always is look for a professional, with good references and proven experience. Get an appraisal or at least an opinion of value from an appraiser. This will allow you to know if this is the right moment to sell and if your values are on the market.
Correct market valuation and impeccable documentation is the key to a safe, short and uneventful closing.
