Frequently Asked Questions
1. About Garza Blanca Real Estate
1.1 What types of properties are available?
- Penthouses range from 3,653 sq ft to 6,430 sq ft.
- Two bedroom residences from 2,228 sq ft
- Three bedroom residences from 3,529 sq ft.
Every residence has its own private balcony with stunning views of the bay, beach and hills. The two and three bedroom units have lock-off features, allowing rental flexibility.
1.2 What type of ownership is available?
Our residence villas are sold in two types of resort ownership –Deeded full ownership and a limited number of deeded fractional ownership residences, every share in fractional ownership is secured by separate deed of the purchased Villa.
1.3 Can I finance my purchase?
Yes, we are offering direct financing for a limited time. We can finance your property for up to 10 years, with a typical deposit of 25% of the price. Some owners will, however, either pay all cash, or get financing on their own or equity from their primary residence, using a line of credit. Contact your Signature Residences representative for more details on direct financing.
2. About buying property in Mexico
2.1 How can I directly own a property in Mexico?
By Mexican law foreigners cannot directly own properties that are 62 miles from the border or 31 miles from the coast line. That’s why the trust deed was created; it allows foreigners to own property in prime locations like Puerto Vallarta, Jalisco, Mexico.
2.2 What is a Trust Deed in Mexico?
A Trust Deed known in Spanish as a Fideicomiso is a Real Estate trust held by a Mexican bank, the bank acts as the Trustee only, and you are the Main beneficiary and those you designate as your beneficiaries are the substitute Beneficiaries of the trust. As the main beneficiary of the trust, you will maintain control over it, retaining the use of the property to enjoy, lease, improve, mortgage, sell, inherit or place in your will.
2.3 Is there a trust administration fee?
The trust will be administered by the Mexican bank on your behalf and will charge a yearly fee of about $450 - $700 USD
2.4 Do I have to renew my trust?
The Trust is done for a period of 50 years and can be at any time renewed for perpetuity. A minimum fee can be assessed when renewed.
2.5 Do I need Title Insurance?
Title insurance has been available in Mexico since 1993 and its purchase is optional. Some foreigners are used to having Title Insurance as part of the real estate transaction, so they feel reassured by having it.
2.6 Who and what is a Notary in Mexico?
A Mexican Notary is a licensed attorney, certified by the State and Federal government to act as an official and impartial representative of the government of Mexico. A Mexican Notary is similar to a notary in Canada and has far greater responsibility than a notary in the US. A Mexican Notary has passed stringent exams required by the Mexican government. They provide strict security of original and record the documents with the Land Registry Office.
2.7 What purpose does the Notary serve?
The Notary performs a variety of tasks including the authentication of legal documents, the calculation of capital gains tax and is responsible for ratifying all Real Estate transactions in Mexico. In a real estate transaction, the Notary is equally responsible to the buyer and the seller and ultimately responsible to the Mexican government. Their job among other things is to ensure the legality of the transfer of title, to calculate and retain taxes, paid to governmental offices on behalf of the sellers and buyers, after the closing they record the transaction at the Land Registry office for you.
2.8 What are the Total Closing Costs?
The closing costs will depend on the purchase price. It is about 5%, it will include the transfer tax (ISAI) of about 2% which is retained by the notary and paid to the Mexican government on your behalf, and Notary legal fees, a registration fee which is a percentage of the assessed value of the property, other fees needed to prepare your trust deed such as tax certificate, no lien certificate to ensure the property is free and clear at Land Registry Office (hall of records)., permit from the Minister of Foreign Affairs to establish the trust deed, property appraisal and other administrative fees.
2.9 What other expenses should I consider on the purchase of property in Mexico?
For residence residenciaowners, maintenance and security is handled by the Residenceminium Owners Association, paid for through monthly fees. However any maintenance to the inside of the residenciais responsibility of the owners of the residenciawith the exception of fractional owners.
At Garza Blanca our 5 star resort services assure your home is safe and prepared to the highest standards for you, your family and guests at your convenience. The level of service is created, maintained, and controlled by your Home Owners Association and operated by Garza Blanca Preserve Resort & Spa. A menu for additional services is provided to Garza Blanca buyers at the time of their purchase, these services can be hired directly thru our owner service manager.
3. About buying a fractional property in Mexico
3.1 What is the basic idea underlying fractional ownership?
The basic idea is that it makes sense to share the ownership of a holiday home because vacation homes are simultaneously expensive, but not used very much. Fractional ownership provides a balance between the amount of time a vacation home is actually occupied and the costs and responsibilities of second home ownership.
3.2 Who does Fractional Ownership suit?
Fractional ownership is suitable for:
- Those who want to purchase an overseas property but only use it a couple of times per year or for monthly periods.
- Those who are interested in buying overseas but want to experience the resort services and location before committing to whole ownership.
- Those who could afford whole ownership but do not feel it makes financial sense given the low use.
- Those who could afford a cheaper apartment but really want to own a large residence.
3.3 How is fractional ownership different from timeshare?
There are two main differences. First, the fractional ownership property will always be the same for life, the timeshare will be subject to reservation and availability and you cannot be guaranteed to get the same unit, you will get the same type of unit with a different location for a period of usually 30 years. Second, Fractional ownership is just that. You own a percentage of the property whereas with Timeshare you only have the right to use the property. Because Fractional owners actually own a percentage of the property, their share may appreciate with time.
3.4 Can I sell my share in the future?
Yes, you may resale your shares just like any general real estate sale. Typically, resale shares are listed with a local real estate broker, who will promote the sale of your share the same way they promote any other property for sale. You may also sell your share yourself, by advertising in any publication, newspaper, or on the Internet at free real estate listing sites. You set the price and are in control of the sale, just like any other property sale.
3.5 About the ownership, do I get a deed?
Yes, fractional ownership is held by a deed (trust deed), the same as whole ownership. Membership clubs don’t transfer ownership, so there is no conveyance of ownership documents.
3.6 Generally, what is the range of prices?
Prices vary according to the type of residencia and range from about $110,000 to $268,000. The average fraction price is $165,000. for a 2 bedrooms and $268,000 for 3 bedroom.