BUYING REAL ESTATE AT OCEAN DELRAY

Ocean Del Ray ensures a smooth and simplified purchasing process for our clients. Below are Frequently Asked Questions regarding property ownership.

Q. When do I pay for my property?

A. The Purchaser only releases funds once the Purchaser holds clear title. By utilizing our Third Party Escrow service, your money is held in an individually numbered escrow account until your trust is complete and the property rights have been transferred to you, the Purchaser.

Q. Is Title Insurance a necessity?

A. Whether you purchase real estate in the U.S. or Mexico, Espiritu Los Cabos recommends Title Insurance for every property you purchase. We insure our cars, homes and our health — it is just as important to insure one of your largest investments: your property. Title Insurance is available for properties in Mexico purchased by U.S., Canadian and Mexican citizens. Fact: Just because you have a trust does not ensure you have free and clear title. Title insurance is a necessity. Fact: In a Espiritu Los Cabos property search, the property’s title is searched all the way back to the Mexican Revolution. Most trust-securing title searches only go back to one or two owners of record.

Q. How do I ensure ownership of the land that I am going to purchase?


A. In the trust document, the Purchaser must name the Beneficiary or foreign Owner of the property. The purchaser can be an individual, multiple partners, a foreign corporation, an estate trust, a living will, or another entity. The Trustee of the trust (the Mexican bank) will take direction from whomever you name as the Beneficiary. Note: You may legally name a U.S. corporation as the Beneficiary of the trust.

Q. How is capital gains tax calculated? 


A. The Notary will calculate the Seller’s capital gains tax based on the purchase price, in Mexican Pesos, at the time of acquisition. This information is indicated on the deed of title. The notary then adds to the Seller’s original purchase price the cost of any construction or remodel (original facturas/receipts required) as well as the closing costs the Seller paid at the time of purchase. After applying annual inflationary credit and construction depreciation factors, the resultant cost basis is determined. The Notary then determines the capital gains tax (ISR) by subtracting the cost basis, as well as the sale’s commission from the sale price, to obtain the ‘gain’, which is taxed at 35%.

THESE MATERIALS ARE NOT AN OFFER TO SELL OR SOLICITATION TO PURCHASE PROPERTY TO ANY RESIDENT OF A STATE OR COUNTRY, WHERE REGISTRATION IS REQUIRED PRIOR TO SUCH OFFER OR SOLICITATION, AND IS VOID WHERE PROHIBITED BY LAW. THIS DOCUMENT REFLECTS THE INTENTION OF THE DEVELOPER, HOWEVER, GRAN ARMEE DEL CABO, SA DE CV RESERVES THE RIGHT TO MAKE ANY CHANGES WITHOUT PRIOR NOTICE AND TO MODIFY RENDERINGS, FLOOR PLANS,AMENITIES AND SERVICES AVAILABLE TO THE RESIDENCE WITHOUT CONSENT FROM ANY THIRD PARTY.