Buying real estate process in Puerto Vallarta, whether you’re a Mexican national or a foreigner, can be straightforward with the right guidance. Here’s a step-by-step path tailored for both types of buyers, especially when working with Daniel Duran at Century 21 Bayside Properties.
1. Define Your Goals and Budget
- National Buyers: Determine if you’ll need a mortgage and, if so, review lending options with Mexican banks.
- Foreign Buyers: Decide if this will be a vacation home, rental investment, or retirement property. Set a budget in your home currency and account for any exchange rate fluctuations.
2. Consult with Daniel Duran
- Schedule an Initial Consultation: Daniel, who is bilingual, will provide insights into Puerto Vallarta’s neighborhoods, current market trends, and properties that match your needs.
- Get Guidance on Financing Options: He can connect you with local mortgage brokers, lawyers, or property managers, providing clear explanations in both English and Spanish.
3. Choose a Property
- Explore Listings: Daniel can arrange visits to available properties, including virtual tours for remote buyers.
- Review Investment Potential: He can advise on rental potential, appreciation trends, and ROI projections if you’re purchasing as an investment.
4. Understand Legal Requirements
- National Buyers: Mexican nationals follow a standard property purchase process.
- Foreign Buyers: Since Puerto Vallarta is within the “restricted zone” (50 km from the coast), foreigners must use a fideicomiso (trust).
- What is a Fideicomiso? It’s a bank trust where the bank holds the title for you, allowing you to control the property fully.
- Duration: Typically set for 50 years, renewable.
5. Make an Offer and Negotiate
- Daniel can help you present a competitive offer in line with market trends.
- Negotiation Process: He’ll guide you through any negotiations in your preferred language, ensuring you understand each step.
6. Prepare for Closing
- Appoint a Notary: In Mexico, notaries oversee real estate transactions, ensuring legal compliance.
- Conduct Due Diligence: Daniel will coordinate with the notary to confirm the title is clear and the property is free from liens or debts.
7. Secure Financing (if applicable)
- National Buyers: Finalize mortgage approval with your bank or lender.
- Foreign Buyers: Explore options with international lenders or Mexican banks that support foreign financing.
8. Sign the Purchase Agreement
- Deposit: Typically, a deposit of 5-10% is required to secure the property.
- Documents: Daniel, being bilingual, can assist you in reviewing all documents. He can arrange for translation if needed.
9. Finalize Closing and Transfer Funds
- Escrow Account: Foreign buyers may use an escrow account to hold funds securely until closing.
- Final Signatures: Attend the notary’s office to sign all documents, with Daniel providing bilingual support.
- Pay Closing Costs: Expect closing costs to be around 5-7% of the purchase price.
10. Take Possession and Register the Property
- You officially own the property after signing!
- Registration: The notary will register the title in the Public Registry, confirming you as the legal owner.
With Daniel’s bilingual expertise, you’ll feel supported through each step, whether you’re a national or foreign buyer.