Category: Attorney advice

Why you should ask for a CLG before you buy property

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By Liliana Elena Gonzalez There are a huge amount of owners selling their own properties, so now, more than ever before, you should be aware of the minimum paperwork that needs to be gathered to protect your investment.  One of those papers is the CLG, and trust me, it will save you future “headaches”. CLG  is “certificado de libertad de gravámenes” (means certificate of free liens) and it is issued by Registro Público de la Propiedad (public recording office). CLG will certify that the property you intent to buy is free…

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10 Reasons why you should hire an attorney when you purchase property in Michoacan

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By Liliana Elena Gonzalez Unless you’re significantly experienced in the buying process, you speak Spanish fluently and you are familiar with legal paperwork, it will be wise to hire a real estate lawyer. Legal representation will provide peace-of-mind (someone looking out for your interests). Here are ten reasons why: 1.- There is no specific law for real estate transactions in Mexico. – Therefore, there is no obligation to write a purchase agreement or “Attorney Review Period” in an offer. 2.- There is no mandatory education or test to become a…

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Is the owner the real owner?

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By Liliana Gonzalez @mexatua In my almost 20 years as a real estate attorney and broker, I have found several issues in the owner´s deed that makes it difficult or impossible to close on a property, unless legal paperwork or procedures are done. When I list a property for sale, I review the deed and, if I see any issues, I immediately start working on fixing them. Same thing when buyers hire me to represent them in a FSBO or when the owners have their own agent. In some cases, the…

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What you should do if you have a property for rent or lease in México?

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By Liliana Gonzalez @mexatua If you own property in México and you need to rent it out, I have 7 suggestions to protect you in case something goes wrong (renters not paying rent on time, or not paying at all, causing damage to your property or building, fixing anything without your permission, causing problems to neighbors, you name it).Here are my suggestions: 1.- Have a good rental agreement in Spanish, prepared or reviewed by an attorney. If you are working with a real estate agent, make sure he/she is a lawyer or TSUCI…

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Taxes in a Real Estate Transaction in Mexico

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By Liliana Gonzalez @mexatua Four different taxes might apply in a real estate transaction in Mexico: ISAI, IVA, Acquisition ISR and ISR a) Acquisition tax.- Also known as ISAI. b) Value added tax. – Also known as IVA. c) Acquisition ISR tax.- This is a tax on the profits for acquisition d) ISR tax. – Also known as I.S.R. (Impuesto Sobre la Renta). The first three taxes, if apply, must be paid by buyer. The last one must be paid by seller. a) Acquisition tax.- ISAI (impuesto sobre adquisición de…

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Do you know what Catastro Price is?

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By Liliana Gonzalez @mexatua Catastro is the analytical inventory and recording of real property located in a certain area. Its aim is to keep a census with all quantitative and qualitative characteristics of real estate in the area. Catastro is handle by the state´s treasury office in every state in Mexico (called Tesorería). Catastro divide properties by areas and set values. These values are the basis to calculate yearly tax payment also known as predial payment. Catastro price equals the government price.  It updates values at any change of property:…

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Foreigner´s Will in Michoacan

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Mexico´s formal name is Estados Unidos Mexicanos (United Mexican States). The United Mexican States are a federation of thirty-one free, sovereign, autonomous and independent states, and the Federal District. All states have the right to create their own constitution. Mexico City is the Federal District, seat of the government (powers of the Union) and capital of the United Mexican States. The city is coextensive with the Federal District territorially and administratively. If the federal government moves to another city, the Federal District would be transformed into another state of the…

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