Recommendations After Signing Title Deed (Bank Trust) – Ensuring a Smooth Transition to Your New Property in Mexico
Congratulations! You have officially become the proud owner of a property in Mexico, and it’s time to bask in the beautiful weather, breathtaking views, and amenities that come with your new residence. However, before fully immersing yourself in the joys of homeownership, there are a few essential tasks to consider for a seamless transition. Let’s start by reviewing the final steps of the property closing process in Mexico:
After signing the deed, the notary will pay the change of ownership tax to the municipality. This process usually takes around 4 months. Once the change of ownership tax has been paid, the notary will provide you with the testimonio. This is the deed that has been duly registered in the public property registry.
1. Change of Ownership and Registration:
With the testimonio in hand, proceed with the change of ownership at the municipality. While the municipal authorities ideally initiate the process, due to a high volume of requests, delays may occur. To expedite the process:
– Visit the municipality with necessary documents: copy of the deed (including the registration slip), a copy of the ISABI payment receipt, a copy of the owner’s ID, and a letter requesting a change of ownership.
– If someone else handles the procedure on your behalf, provide them with a simple power of attorney.
Once the change of ownership is completed, the next property tax bill will be in the client or fiduciary’s name. If the clients do not initiate the change of ownership, the property tax will continue to appear in the name of the seller.
2. Transfer of Contracted Services:
You will be able to change the contracted services for your property to your name, including electricity, water, internet, etc., once you obtain your testimonio. Our only recommendation is to ensure that all your documentation is in order and to visit the relevant offices as soon as possible. Acting promptly can expedite the process and minimize any potential delays and costs. At this point, you will have an official proof of address in Mexico under your name.
3. Payment of Condominium Fees:
Check the policies of your condominium administration for payment methods (electronic transfer or cash) and coordinate payment details with them.
4. Annual Expenses Planning:
Predial (Property Tax) Payment: Pay annually, preferably from December to February to take advantage of municipality discounts for early payments. Make payments directly to the municipality, using your cadastral number.
Click here to read more about property tax payments in Mexico.
Federal Zone Payment (for beachfront properties): Pay annually or bi-monthly, either online or at the municipality cashier, using your cadastral number.
Fiduciary Payment: Pay annually via electronic transfer or credit/debit card. Coordinate payment details directly with the bank that holds your trust.
5. Consideration of Immigration Status:
Review your immigration status and explore the benefits of becoming a Mexican resident. Contact our immigration specialists for personalized guidance and information.
6. Rental Considerations:
If you plan to rent out your property, our partner company Mextax offers extensive experience in personal and business accounting services in Mexico. Feel free to reach out to Mextax for assistance.
Embrace your new life in Mexico and take pleasure in settling into your new home. Remember, we are here to support you every step of the way. Don’t hesitate to contact us for any further assistance or inquiries. Welcome to your new chapter in Mexico!