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Buyers Guide

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Buyers Guide

ONCE YOU HAVE IDENTIFIED THE RIGHT PROPERTY YOU WILL WANT TO MAKE AN OFFER TO PURCHASE THAT PROPERTY.

[1] COPYRIGHT © DAVID PULLEN PROPERTIES 2014

Buyers Guide

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MAKING AN OFFER AND NEGOTIATING Offer Process: I.

The offer is presented in writing in Spanish being the legal language of Mexico with a courtesy translation in English through your real estate agent. At times, the offer is made orally depending on the client’s request and time constraints. You may decide to accept or counter the offer as part of the negotiation.

II.

The seller may accept or decide to respond to your offer by countering your offer.

III.

In the case of numerous offers, for the same property your agent or broker will help to design a strategy with you to establish a final offer that meets your requirements.

IV.

The final offer process should conclude in an agreement in terms, purchase price, special conditions (if required) and the corresponding closing date.

V.

If you require legal advice, David Pullen Properties can refer you to a reputable real estate attorney to review all contracts related to the sale.

[2] COPYRIGHT © DAVID PULLEN PROPERTIES 2014

“Puerto Vallarta offers a myriad of real estate opportunities for every type of investor” — David Pullen Properties Associate

Buyers Guide

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CONTRACT OF SALE AND DUE DILIGENCE Once your offer has been signed and authorized by the seller, you will enter the due diligence period.

Your agent and or attorney will exercise “due diligence” according to the irrevocable conditions and terms within the offer by requesting the pertinent paperwork from the seller and or the listing broker or agent.

In the case of a condominium the typical documents required would include: I.

Minutes of the last calendar year annual homeowners meeting.

“It’s our responsibility to provide our clients with a clear understanding of the purchasing process in Mexico” — David Pullen Properties Associate

II.

Statement of the building’s financial condition.

III.

The building’s regulations and by-laws.

IV.

Building assessments due and payable prior to the closing date.

V.

A home inspection.

VI.

A list of inclusions and exclusions of furniture, appliances and artwork.

VII. Pro-ration of expenses.

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In the sale of a home generally the following information would be required by the buyer: I.

Monthly or yearly operating Costs.

II.

Home inspection.

III.

Inclusions and exclusions of furniture, appliances and artwork.

IV.

Pro-ration of expenses.

V.

Severance pay of employees.

VI.

Cancellation of Union Contracts if this applies.

— David Pullen Properties Associate

VII. Based on the results of the “due diligence” that has been performed,

the Buyer if in agreement will release the conditions and move forward with the offer to purchase.

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“Choosing the right broker will make all the difference when purchasing in Mexico”

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DEPOSIT, ESCROW AND CLOSING COSTS I.

The buyer will then deposit 10% of the agreed upon sales price with the established Escrow Company. An individual Escrow account is set up for each real estate transaction.

II.

The signed offer, escrow agreement, title and other personal information for both the buyer and seller are then sent to the designated Notary Publics office.

III.

It is important for the buyer to take into consideration that their closing costs run between 4 to 6% of the agreed upon sales price.

IV.

An initial closing cost deposit will be sent by the Buyer by means of a wire transfer to the Notary Publics office to be applied to the closing fees and expenses.

V.

The buyer’s 10% deposit will be held in a designated escrow account until the established closing date and the signing of the corresponding Title deed.

“Purchasing a property in Mexico does not need to be a complicated affair” — David Pullen Properties Associate

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CLOSING BEFORE A MEXICAN PUBLIC NOTARY I.

The final step is the closing that normally takes place within 60 to 90 days from the signed acceptance of the offer by both the buyer and the seller.

II.

Prior to the closing, the buyer would wire the balance of the purchase price to the Escrow account that would have been already established with the escrow company.

III.

The buyer also needs to have wired the balance of the closing costs to the designated Public Notary prior to the established closing date.

IV.

It is common that the buyer would request a final walk-through of the property prior to the closing however it is important to note that this final inspection request should have been specified within the original offer to purchase.

V.

Generally all appliances and fixtures should be in good operating order and condition prior to the closing date unless the contrary is stated within the original offer.

VI.

The closing will take place within the office of the designated Mexican Public Notary.

VII.

Rarely but at times there are complications in closing on a specific date. It is important that you specify to your agent to place an extension clause within the original offer that takes this into consideration and specifies an additional period in case of any delays.

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“Our mission at David Pullen Properties is to provide exceptional real estate services to our clients” — David Pullen Properties Associate

Buyers Guide

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VIII. Finally, both the buyer and seller will sign the Title before the Public

Notary and will also sign the Letter of Instructions to the Escrow company for the release of the funds of the purchase price from the corresponding escrow account.

IX.

X.

All expenses including real estate fees, Mexican capital gains taxes and any other direct expenses will be noted within this signed letter, and wire transferred accordingly from the designated escrow account to the specified parties.

The buyer’s keys are delivered at the closing and the buyer then takes legal possession of the corresponding property.

[7] COPYRIGHT © DAVID PULLEN PROPERTIES 2014

“Our clients are the most important assets of our firm” — David Pullen Properties Associate

Buyers Guide

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For more detailed information on buying real estate in Puerto Vallarta, please contact one of our real estate experts at info@davidpullenproperties.com At David Pullen Properties we are always here to help.

NOTE: THE ABOVE INFORMATION HAS BEEN PRESENTED AS A BASIC GUIDELINE ONLY. CLOSING EXPENSES AND PROCEDURES WILL DIFFER FOR EACH UNIQUE INDIVIDUAL TRANSACTION. THE REQUIREMENTS WITHIN THIS BUYERS GUIDE ARE SUBJECT TO CHANGES.

[8] COPYRIGHT © DAVID PULLEN PROPERTIES 2014