EL CID REAL ESTATE FREQUENTLY ASKED QUESTIONS
What is the price range of properties in El Cid's residential community?
Prices begin around $180,000 USD for a new two-bedroom, two-bathroom condominium with golf course view. Lots begin at $105,000 USD.
Do you have financing available?
El Cid can provide financing for five (5) years with a current rate of 9.25% per year. Papers need to be signed in advance with monthly payments sent to our U.S. bank account. There are no prepayment penalties should you wish to pay in advance.
Can I rent out my property?
El Cid does not rent properties, but individual owners can rent or use an established rental management company here in Mazatlán.
Can I use the facilities at El Cid Resorts?
Yes, simply let us know which resort you wish to visit and a pass will be given to you for the days you require.
Is country club membership automatically included when I purchase real estate?
Membership in El Cid Golf & Country Club is optional for a fee.
How much is the El Cid Golf & Country Club membership and maintenance fee?
The initiation fee for a 10-year membership is $10,100.00 USD. Every year thereafter there is a monthly maintenance fee of $350 USD. There also is a "required spend" of about $300 USD per year, which must be spent in the Club House restaurants.
Are there grocery stores nearby?
There are many well-known stores within a five to ten minute drive, including Soriana, Mega, Wal-Mart, Sam's Club, and Casa Ley.
Am I allowed to have pets at El Cid?
Pets are allowed if they are not left alone and are well cared for in your home and on your property.
How much are the annual taxes?
Annual taxes are based on the value of your property, and are very low in Mexico. For example, a $180,000 USD condo might have annual taxes of $450 USD.
How expensive are electric and water services? Are they provided by El Cid or the city of Mazatlán?
These services are provided by the city. Water can cost approximately $20.00 USD a month and electricity might be around $90.00 USD a month. In the summer, the fees are typically 30% higher due to the use of air conditioning.
What is the typical cost for maid service?
The cost is currently about $15.00 USD for four (4) hours of cleaning.
What types of documents are required for the trust?
You must complete a bank form, provide copies of your passport and driver's license, and pay the cost to open and purchase the trust.
What are typical closing costs?
Closing costs are 7% of the property value. Additionally, a one-time Trust is approximately $2,420 USD and includes closing costs for the first year.
Can you recommend a notary? How expensive are their services?
We can provide you with the names of several reputable people. They can provide estimates of their fees.
How long does it take to have the deed put in my name?
Approximately 45 days after you pay your Trust fees, a 50% down payment is required for the notary to begin the necessary paperwork.
Are there any other payments to be aware of?
The Home Owners Association fee starts at $1,400 USD per year, depending on the specific area in which you reside.
May I use US or Canadian dollars (cash) to pay for merchandise or services?
As of September 14, 2010, a new policy has been enacted affecting cash payments in foreign currencies. Please note that during your next visit to Mexico, cash payments can only be made in Mexican Pesos. All other payment methods (credit/debit cards and travelers checks) will still be accepted where indicated. El Cid Resorts maintains "exchange bureau" facilities in all six of our hotel properties located in Mazatlán, Riviera Maya, and Cozumel where you may exchange up to $1,500 USD per person in cash to Mexican pesos. We also have ATMs within our properties for withdrawals, and there is no restriction as to the amount of cash in Mexican pesos that a person can withdraw.
Other valuable information:
It is a common misconception that foreigners cannot own Real Estate in Mexico, but in reality they can. However, there is a restrictive zone, as described below, and we have to consider the following alternatives:
- Outside the Restricted Zone, a foreigner or foreign corporation can acquire any type of real estate as any Mexican National, holding the property as a direct owner complying with Mexican law.
- Within the Restricted Zone, a foreigner or foreign corporation may obtain all the rights of ownership, but it must be in a bank trust known as Fideicomiso.
- Another alternative is to purchase non-residential property through a Mexican corporation. The corporation can be, under certain conditions, 100% foreign owned, with a provision in its by-laws that the foreigners accept to be subject to Mexican laws and agree not to invoke that laws of their country.
- Also the real estate acquired must be registered with the Foreign Affairs Ministry and used for non-residential activities. In other words, under said conditions, foreigners can acquire properties designed for tourist, commercial and industrial use.
The Restricted Zone
The Mexican Constitution regulates the ownership of the land and establishes that in a zone of 100 kilometers along the border, or 50 kilometers along the coast, a foreigner cannot acquire direct ownership of the land. These areas are known as "Restricted or Prohibited Zones". Nevertheless, the latest Mexican Foreign Investment Law, which became law on December 28, 1993, makes the allowances mentioned above.
Fideicomiso or Bank Trust
Any foreigner or Mexican National can constitute a Fideicomiso (the equivalent to an American beneficial trust) through a Mexican bank to purchase real estate anywhere in Mexico, including the Restricted Zone. To do so, the buyer requests a Mexican bank of his/her choice to act as a trustee on his/her behalf.
The bank obtains the permit from the Ministry of Foreign Affairs to acquire the chosen property in trust. The Fideicomiso can be established for a maximum term of 50 years and can be automatically renewed for another 50-year period. During these periods, you have the right to transfer the title to any other party, including a member of your family.
The bank becomes the legal owner of the property for the exclusive use of the buyer/beneficiary, who has all the benefits of a direct owner, including the possibility of leasing or transferring his/her rights to the property to a third party or pre-appointed heir. During this period, the foreigner is considered as a Mexican National.
The trustee is responsible to the buyer beneficiary to ensure precise fulfillment of the trust, according to Mexican law -- assuming full technical, legal, and administrative supervision in order to protect the interests of the buyer/beneficiary. Fideicomisos are not held by the trustee as an asset of the bank.
For practical purposes, even in the unrestricted zone, many foreigners and Mexican Nationals, for that matter, prefer to hold their property under a Fideicomiso.
Whether you're single, raising a family, or in your golden years, El Cid Real Estate will help you find the vacation property of your dreams. With more than 30 years of real estate experience, El Cid specializes in creating fantastic lifestyles. For more information about our Mazatlán Mexico vacation homes, contact us today.