Sell a Home – The Procedure and Stages
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A New Listing
When we take a listing, we want to be ready to immediately respond to incoming offers. Running around trying to find the necessary documents once we have a pending offer is not how we do it and the more quickly we can respond to a potential buyer, the easier it will be for us to make the sale. For this reason, we request the necessary documents at the beginning in order to avoid such a situation. Below is a list of documents that we need to complete the file along with an explanation on why such document is important. Those documents indicated with an asterisk are requisites for all listings that will appear in the AMPI MLS and the others are general requirements.
Signed Listing Agreement* – In order for the listing to be submitted to the MLS Multiple Listing Service, a signed listing agreement is required by the legal owners of the property.
Escritura* (Deed of Title) – We need to know that you indeed are the owner (either fee simple or in fideicomiso) of the property. The MLS also requires that we have this to list the property.
Government Issued Photo ID – Again, this shows that you are the owner of the property and it will be required in the event of a sale of the property to be presented to the Notary who is doing the closing as well as the escrow company that will be holding the funds.
Current Property Tax Bill* and if possible, its corresponding payment – In calculating some of the taxes, it is important to know the current tax value of the property. The Notary uses this to calculate estimates on capital gains tax payments as well as Buyer's closing costs. MLS also requires this to list the property.
Inventory/Exclusion List – It is the Seller's choice if you want to provide a list of inventory or a list of exclusions but we do not like to show a property without knowing what is or is not included as that is a common question from the clients. Property Disclosure Statement – Your agent will provide this to you to complete as a disclosure on the property.
Capital Gains Tax Estimate – your agent will provide this to you from a Public Notary qualified to make that calculation at the time you list the property and use the documents provided by you.
Administration Letter in the Case of Condominium – Part of the documents we require in the case of listing a condominium are the condominium documents. We will provide you with a letter to the administrator of your condominium requesting those documents. These are ALL documents that you as an owner are entitled to have and Buyers will use to determine the condition of the HOA.
ID Requirements Format – This is a new format required under Mexican law which is basically a summary of the documents and information required by the Notary to close a transaction. We provide this to our clients at the beginning so that they know what to expect.
Privacy Statement – Again, a new requirement under Mexican law and we provide a privacy statement to each of our clients in an easy-to-read bilingual format.
Additional Items/Documents to Complete the File
In today's market, our Buyers are more particular and sometimes more careful in their due diligence when buying. The more complete our file, the quicker we can provide a potential Buyer with the documents they request. Remember, these documents are only provided upon request in submitted offers and are kept confidential.
1. Federal Zone Concession – This applies to oceanfront properties only.
2. Copy of the Payment of the Trust Fees – It is important to have the information on the trust bank as it is the bank that will be approving the deed transferring title in the event of a sale. Trust fees must be current before the bank will act.
3. Copies of Utility Bills (recent) – We will need to see the services on the property to show the Buyer as well as to prepare the transfer document to transfer the utilities to the Buyer at closing. The Notary will also need to see this as a proof of domicile for you, the Seller, here in Mexico.
4. Rental Calendar and Income and Expense Statements – for those that rent and might be marketing the property as an investment property, this will be important. The calendar is also important in the event you have reserved the property for dates that will be post-closing, as a Buyer will be due those rentals and/or deposits.
5. Condominium Documents (in Spanish):
a. Condominium Regime – The Notary will need this document to close and it is also important to review as it usually includes the Bylaws. The Spanish recorded version is the binding version so it is more important to see that version rather than an English translation.
b. Bylaws – so that the Buyer is aware of whatever restrictions may exist against pets, noise, etc…
c. Copies of Minutes Of The Meetings For The Last 2 Years – This is important to see how the condominium is run, any issues that might be pending, any modifications to by-laws, etc…
d. Condominium Financial Statements for the past 2 years – Important to see the finances of the condominium, how are the maintenance fees used, who is paying and who is not, and if there is a reserve account established.
e. Current Budget – All Buyers want to know what to expect insofar as monthly maintenance.
6. Survey – Especially with lots, it is great to provide a Buyer with a topographical survey of the property, if possible.
7. Proof of Service Letters – Generally, in the case of lots, we should provide letters from each utility company showing that service is (or is not) feasible on that lot.
8. Feasibility of Construction and Zoning – Especially for lots, often it is key to know what you can or cannot build on a certain property or what can be added to existing construction.
9. Certificate of No Liens – to show that there are/are no liens against the property and if there are, the nature of the lien. Your agent will be able to help you obtain this certificate.
During the Listing
During the time your property is on the market, the property will appear in print and web-based advertising as well as on social network sites like Twitter and Facebook and be featured in open-houses and other marketing. It will be featured on the Coldwell Banker website and promoted to real estate agents all over the world through the Flex MLS System and the Coldwell Banker global network.
The Closing Process
Congratulations! We have received an offer on your home! We will review the offer with you and answer any questions you may have. We also have an attorney who is available and standing by to help if needed. We will provide you with recommendations on how and if to respond with a counteroffer or if it is better to accept the offer as written. That said, you, the client, will have the last word. We will prepare the response as per your instructions and review the same with you so that it is correct. This may go back and forth a few times or not at all, but we are here to guide you through the procedure. This can all be done via fax or e-mail with original signatures required once we have the final accepted offer.
You and the Buyer have reached an agreement – what great news! In general cases, there will be a term of due diligence so that the Buyer can review the documents pertaining to the property, conduct (at their expense) the necessary inspections, and other contingency items that may or may not apply.
Escrow is open and contingencies are removed! What does this mean? This generally means that the Buyer has deposited the required 10% good faith deposit into the escrow account and is satisfied with the due diligence. This means we are going forward to closing. We work closely with the Notary to coordinate all closing aspects of the transaction.
Do I need to be present for the closing? As the Seller you will need to be present at the closing or grant a power of attorney to someone that you trust to sign documents at closing on your behalf. We, as your real estate agent cannot act as your representative in this aspect as it would be a conflict of interest. If you cannot be present, the power of attorney can be prepared for you to sign.
If you are in the United States, you can have the power of attorney notarized by a local notary and then "apostilled" by the Secretary of State of the state in which you sign. If you Google "apostille + secretary of state + (the name of your state)", information will come up on how to get this done. It is very simple.
If you are Canadian, you will have to have the power of attorney signed in the Mexican Consulate nearest you and each consulate has its own format and rules. This link shows the information on the consulates in Canada.
What else do I need to do for closing?? You will need to prepare to liquidate your staff or employees if you have them. Your agent will be able to guide you through this. You will need to make sure that all bills associated with the property are brought current. Now all you need to do now is relax and wait for the notary to process the paperwork for the Buyer. You will need to provide wire instructions to your agent so that we know where to send your proceeds and there may be some incidental costs to cancel your fideicomiso trust or bring yourself current on taxes and fees. We will provide you with a proration statement prior to closing to show what expenses you will need to pay at closing, prepaid costs that will be reimbursed to you at closing, taxes due the government, if any, and finally the net proceeds that you will receive on the closing date.
The closing date is here! Finally! The closing date is here. The Notary office will set the time of closing according to the schedules of both Buyer and Seller and based on the Notary office workload and availability. Generally, closings take place after 10 am and before 5 pm. Up to three days prior to going to the Notary, the Buyer will usually do a walk-through of the property just to make sure everything is in place. As a Seller, once you leave your property after the walkthrough, you will not return.
At the Notary office, you will review the paperwork with the Notary and closing coordinator to make sure everything is in order. Aside from the deed transferring title to the Buyer, you will be signing disbursement instructions to the escrow agent which instructs the escrow agent where to send your funds. It is important that you provide COMPLETE wire instructions to us prior to the closing so that there is no delay in you receiving your money. Wires sent prior to 1:00 p.m. will be transferred that day and may be received in your account on the same day.
Once documents are signed the Notary will send the escrow agent the disbursement and copies of the deed and funds will be released. You provide the keys to the Buyer and the closing is complete!
Post-Closing Follow Up
As a Seller, your job is done. Be sure and keep a copy of the transfer deed and tax payment statement for your own records (you will be given this at closing). Once again, congratulations!