SELLER’S GUIDE

Selling property in Baja California Sur offers a unique opportunity, whether you're a long-time resident or a foreign investor. The stunning landscapes, vibrant culture, and growing popularity of this region make it an attractive market. To ensure a smooth and successful sale, understanding the local process, legal requirements, and market dynamics is crucial.

Here is an overview of what to expect when selling your property in Baja California Sur.

THE PROCESS OF SELLING

First step would be to partner with a local real estate expert : we can help you get ready to put your property on the market by providing accurate valuations. By understanding the local market trends, we can help you price your property competitively.

Before listing your property, we have to ensure all your documents are up-to-date and readily available. This will streamline the selling process. Our legal team will help you go through the necessary documentation.

Next step is preparing your property for sale. First impressions matter. Taking the time to prepare your home can significantly impact its appeal and saleability. Consider:

• Decluttering and deep cleaning to create a sense of spaciousness and cleanliness.

• Depersonalizing by removing personal items to help potential buyers envision themselves in the space.

• Arrange furniture to highlight the property's best features.

• Fix any obvious issues that could deter buyers or lead to complications during inspection.

Once your property is prepared and your documents are in order, the selling process generally follows these steps:

• Listing and Marketing: we will market your property through various channels, including online listings, professional photography, and open houses.

• Receiving Offers : Potential buyers will submit offers.

• Negotiation and Promissory Agreement : Once an offer is accepted, a formal promissory agreement is signed. This legally binding document outlines the agreed-upon price, deposit amount, payment terms, closing timeline, and any contingencies.

• Working with a Notary Public : The “Notario Publico” is a crucial, government-appointed legal professional who oversees all real estate transactions in Mexico. Their role is to ensure the legality of the sale, verify documentation, calculate and withhold taxes, register the transaction with the Public Registry of Property, and transfer title. We will coordinate all the necessary steps with the Notary.

• Escrow Process: In Mexico, it's common to use an escrow service, particularly for foreign transactions. An escrow agent is a neutral third party who holds funds and documents until all conditions of the sale are met. This provides security for both buyer and seller.

• Fideicomiso Transfer (if applicable): If your property is under a fideicomiso, the bank holding the trust will be notified of the sale. The new buyer can either assume the existing trust or establish a new one. We will guide you through this process.

• Closing: On the closing day, all parties (or their legal representatives) sign the final Public Deed before the Notario. The Notario registers the deed with the Public Registry of Property, and funds are disbursed from escrow. This is when legal ownership officially transfers.

FEES

Selling property in Baja California Sur involves certain taxes and costs. It's essential to factor these into your financial planning:

• Real Estate Agent Commission: Typically ranges from 5% to 8% of the sale price, plus 16% IVA (Mexican sales tax).

• Capital Gains Tax (ISR - Impuesto Sobre la Renta): Mexican law applies capital gains tax on the profit from the sale of residential property. This can be calculated in by our Notario who will help you find the best financial strategy.

• Fideicomiso Cancellation Fee: If your property is held in a fideicomiso and the new buyer does not assume it, there will be a fee to cancel the trust, typically around US1,000-US1,500.

• Notary Fees: The Notario Publico charges fees for their services, including verifying documents, preparing the deed, and handling tax payments. While some Notario fees are typically paid by the buyer, sellers will have some related costs.

• Escrow Fees: If an escrow service is used, there will be a fee for their services, usually around US500-US750.

Selling your property in Baja California Sur can be a rewarding experience. With its increasing popularity as a tourist destination and a haven for expatriates, the demand for real estate remains strong. By understanding the process, preparing thoroughly, and enlisting the right professionals, you can navigate your sale with confidence and achieve a successful outcome.