What Documents You Need to Sell Your Home in Puerto Vallarta

What Documents You Need to Sell Your Home in Puerto Vallarta

If you’re considering selling your property in Puerto Vallarta, having the right documentation prepared in advance can make the process smooth and efficient. In this guide, we’ll walk you through the essential documents you need, along with tips to ensure they’re in order before you put your home on the market.

1. Proof of Ownership (Escritura Pública or Deed)

• Description: The escritura pública, or deed, is a notarized document that proves your ownership of the property. It’s essential for any real estate transaction in Mexico.
• Preparation Tip: Verify that your name, property address, and details are accurate. If you’ve inherited the property or acquired it through a fideicomiso (bank trust), make sure the trust documents are also accessible.

2. Identification and Legal Residency Documents

• Description: As the seller, you need to provide official identification, such as a passport (for foreigners) or an INE card (for Mexican nationals), to verify your identity.
• Preparation Tip: Make sure your identification is valid, and if you’re not a resident of Mexico, have a certified copy of your passport and visa information handy.

3. Fideicomiso (Bank Trust) Documents (For Foreign Sellers)

• Description: Foreigners selling property in the restricted zone (which includes Puerto Vallarta) must provide fideicomiso documents. These include the original trust agreement and any amendments that verify the trust’s current status.
• Preparation Tip: Contact your bank or trustee well in advance to obtain certified copies of the fideicomiso documents. Note that you may need to pay a fee to transfer or close the trust upon the sale.

4. Property Tax Payment Receipts (Predial)

• Description: Property taxes in Mexico are paid annually, and the current year’s predial receipt confirms that these taxes are up-to-date.
• Preparation Tip: Ensure you have receipts for the past 3-5 years, as buyers or their agents may request a history of payments to verify tax compliance.

5. HOA (Homeowners Association) Payment Receipts (If Applicable)

• Description: If your property is part of a gated community or condominium with HOA dues, you’ll need proof of paid HOA fees.
• Preparation Tip: Have records showing payments over the past year, as well as any statements from the HOA confirming there are no outstanding balances.

6. Utility Bills (Water, Electricity, Gas)

• Description: Recent utility bills show that the property is up-to-date with essential services. This may include water, electricity, and gas receipts.
• Preparation Tip: Collect the last 3-6 months of bills and confirm there are no unpaid balances. Buyers often request these to estimate ongoing utility costs.

7. Title Search and No Lien Certificate (Certificado de Libertad de Gravamen)

• Description: The no lien certificate confirms that the property has a clear title and no encumbrances. It’s issued by the local registry and is a key requirement in any sale.
• Preparation Tip: Work with your agent or attorney to obtain this document from the public registry office. It’s recommended to request this document once you decide to list the property, as processing may take a few days.

8. *Property Appraisal (Avalúo)*

• Description: A recent property appraisal determines the market value of your home. Although optional, it can help set a competitive price and facilitate financing if the buyer requires it.
• Preparation Tip: Consider hiring an accredited appraiser to provide an up-to-date valuation, especially if your property is unique or has recently undergone renovations.

*Although in Puerto Vallarta, because it is a highly desired destination for investors, the price resulting from an appraisal is not always taken as market value, but it does give an idea of ​​the value in some cases, especially in properties that are not located in an area high demand in the market*

9. Sales Contract or Offer to Purchase (Contrato de Compraventa)

• Description: Once an offer is accepted, a formal sales contract is drawn up to outline the terms and conditions of the sale. This is typically prepared by your agent or notary.
• Preparation Tip: Work with your real estate agent and notary to draft a clear, detailed sales contract. Be ready to review and adjust it based on negotiations.

10. **Capital Gains Tax Calculation (ISR)

• Description: Mexican law requires sellers to pay capital gains tax (ISR) on the profit from the sale. Documentation of purchase price, any improvements, and time owned can affect this calculation.
• Preparation Tip: Consult a tax advisor or accountant to determine your potential tax liability. If you’ve lived in the property as your primary residence, certain exemptions may apply. Gather documentation of any property improvements that may offset the tax amount.

**Your real estate agent or your notary will help you give you a very approximate idea of ​​the ISR payment scenario, prior to listing your property, or, if applicable, before closing.*

Preparing Your Documents for a Smooth Sale

Selling your property in Puerto Vallarta can be straightforward if you have your documents prepared and accessible. Here’s a quick recap of steps to ensure a smooth documentation process:

1. Gather and Review: Collect all relevant documents, review them for accuracy, and address any inconsistencies.
2. Check with a Professional: Consult with a real estate agent or attorney for any unique requirements in Puerto Vallarta.
3. Prepare Copies: Have both physical and digital copies of each document to expedite the sale process.

Taking time to organize and verify these documents will help you avoid potential delays and make the sale of your Puerto Vallarta property as efficient as possible. With these essentials prepared, you’ll be ready to move forward when the right buyer comes along!