Can a private contract replace the deed?
No, for most families, buying a house means investing all their savings and, often, the most important assets of their lives. There is no document that is dangerous since private contracts and powers of attorney are not long-term solutions and entail great risks for the buyer; for example, the death of the seller by the end of power, which would imply that the death of the seller would have to start a trial to prove the possession of the property and with that the property.
Do I have to make deed forcibly?
One of the main functions of the notary and the Real Estate Advisor is to provide legal security to the patrimony of the families through the formalization of the purchase of real estate in public deed.
For this reason, it is necessary to go to the Real Estate Advisor before carrying out any procedure, payment or contract of sale of a property so that it can review the documents of the property and provide legal advice to the parties.
Who owns a home acquired with a mortgage?
The owner of the property, even when the mortgage loan is valid, is the buyer. The property serves as a guarantee of the credit, only in case of default of payment the banking institution can sue the debtor to pay and, in extreme case, the property can be auctioned.
José Antonio Manzanero Escutia, President of the National College of Mexican Notaries, points out that it is essential to remember that the deed of a property is the only way to have the legal certainty of a property before third parties, including banks. Similarly, it is a way to avoid real estate fraud.
In the case of the seller, do you have to pay any tax?
When a person obtains income from the alienation of a property, that is to say his sale, he must pay the Income Tax (ISR). This tax is only paid by natural persons and in many cases it is the notary himself before whom the sale is made who retains it.
There are some cases in which it is possible to exempt ISR payment or deduct expenses that are subtracted from the profit from the sale of the property and, as a result, a lower tax is paid or nothing is paid.
In the case of legal entities, income is also taxed, but it is accumulated along with other income. It is worth mentioning that there are also non-profit moral persons obliged to pay this tax as if they were natural persons and, there are cases, in which some individuals who are taxed with the business activity regime do cause this tax, but the notary does not Hold In these particular cases, due to the complexity of the topic, it is appropriate to go to Realtor and/or a notary to ask for advice.
What are the costs of deed?
Normally they are paid by the buyer, and are:
Tax on acquisition of real estate (it is local, in some places it is called the transfer tax)
Public registry rights
Rights for obtaining certificates or certificates of various dependencies (such as, certificate of freedom of encumbrances, proof of non-payment of contributions, land use certificates, cadastral plans, among others, and disbursements (payment to managers, transfers, appraisals , per diem, etc.), finally the fees of the notary and the corresponding VAT.
It is very expensive to write a property?
Currently in the metropolitan area of Nuevo León, México, the cost of the deed of sale of a home ranges between 4% and 7% of the total value of the property. The largest proportion of this cost is taxes and fees that the notary retains and has to pay to the treasury.