Is Escrow available in Baja California? – Baja Legal Advice

Yes, there is escrow in Baja California and Baja California Sur, and yes, you should demand Escrow to be involved in your transaction. There are several reliable options available in most cities, such as in Rosarito, and in Los Cabos and La Paz.

Click Here For More Information About Using Escrow In Baja

Being in escrow is a contractual arrangement in which a third party receives and disburses money or property for the primary transacting parties, most generally, used with plentiful terms that conduct the rightful actions that follow. The disbursement is dependent on conditions agreed to by the transacting parties.

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Rafael Solorzano - Baja Legal Advice

Rafael Solorzano
Attorney at Law / Licensed Exclusively in Mexico

Baja Legal Advice Facebook Group

Renting a Property in Mexico – Baja Legal Advice

The Lease Agreement

(Be careful what you bargain for)

Once an offer for a lease is accepted, a formal written rental agreement must be signed by the parties, all rent payments must be secured with a receipt.

If value added tax is added to the payment of rent, an invoice must be issued by the landlord to the tenant (an invoice is not a receipt).

The rental agreement is a private contract which allows the tenant temporary use of a property in exchange for a specified amount of rent. Rent is usually paid on a monthly basis, unless specified otherwise in the contract. It is advisable to have the contract reviewed by a lawyer to ensure that its terms do not violate the civil code. Estate agents generally ensure that this is done.

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Capital Gains and Tax Exemptions – Baja Legal Advice

A common problem surfaces when a seller requests or demands that the buyer declares to the notario that the price paid for the property is lesser than that which was agreed.

How does this work?

The seller tells the buyer that if the actual sales price is declared to the notario this will result in excessive annual property tax, FALSE!

Some Sellers that are unaware or do not qualify for tax exemptions (such as that provided by article 93 of the Federal Income Tax Law) go to extents to avoid paying capital gains and when they persuade the buyer to consent in declaring a lower the price to save capital gains, they will then ask for 2 checks to be handed out.

One check is to be declared to the notary as the sale price for tax purposes and the second check (given under the table) covers the difference that would make the gain taxable, the problem is that if the buyer is unaware of this it will then become an issue if and when the buyer decides to sell the property because he actually consented to inherit the seller’s tax liabilities.

Rafael Solorzano - Baja Legal Advice

Rafael Solorzano
Attorney at Law / Licensed Exclusively in Mexico

Baja Legal Advice Facebook Group

Buying or Selling in the Rosarito Beach Area? Call Us! Rosarito Beach Real Estate

Professional Real Estate Advice with Kanoa and Rafael for Rosarito Beach

Kanoa interviews Rafael Solorzano, a Baja Real Estate Attorney, regarding the importance of having a professional handle the closing process in a Real Estate purchase transaction.

Rafael among other topics also stresses the importance of doing due diligence and how he’s able to complement the work of a real estate professional.

Here’s a list of questions Kanoa asked Rafael:

1:18 – Please introduce yourself and tell us about what you do
6:57 – Tell us about your Facebook group Baja Living Advice
9:53 – How can people avoid problems with their transactions?
15:03 – How can you complement a real estate agent?
18:32 – What is the importance of disclosures, and due-diligence?
23:46 – What would be your advice to buyers today?
31:59 – Who would be your ideal client?
34:15 – What is the expectation of clients regarding discounts in Mexico?
39:40– Can people enjoy their experience buying a property in Mexico?
41:42 – How can you contact Rafael Solorzano?

Rafael Solorzano - Baja Legal Advice

Rafael Solorzano
+52 (664) 188-7001

Baja Legal Advice Facebook Group Rosarito Beach Real Estate

Feuding with your Landlord? – Baja Legal Advice

 Here is a refresher on your rights
and obligations regarding leases


Civil Code for Baja California

ARTICLE 2272.- A lease consists of the agreement between two parties which reciprocally agree to, on one part, to allow the temporary use and enjoyment of something, and the other to pay for that use and enjoyment a price that has been agreed.

A 99 year or 30-year lease? Nonsense!

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Signing Legal Documents In A Foreign Language

Every week I review documents sent to me by clients which where drafted and signed by parties in a real estate deal, most of such documents are not compliant with Mexican Law, call them to purchase agreements, promissory letters, etc. why? I already stated that they are not compliant with our laws, also, many times these documents are drafted in a foreign language.

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When the Landlord Refuses to Make Repairs to the Leased Premises

What Does The Law Say About It?

Not a week goes by without me receiving several calls or messages having to do with Landlord abuse, among which failure to make timely and proper repairs to the property, pocketing the security retainer, among others.

This is a common and recurring scenario: Your landlord required you to pay thousands of dollars in cash upfront for either a 1 or 2-month rent payment plus a security deposit when leasing the property. Just as they hand over the keys, you are rushed o sign the lease and skip a “Move-In Inspection,” of course. After you move out, no matter how many days you spend scrubbing the place, the landlord does its own walk-through, conjuring any discrepancy they can muster in the place. It doesn’t matter if the discrepancy or rubbish existed when you moved in or not.

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Switching Trust Banks

I have been asked this multiple times, can I switch banks, the reason usually is to save money or to have a functional relationship with the bank (Bancomer is too expensive and bureaucratic, Banorte is slow as a snail, HSBC is not taking any more business and is hard to reach).

Well, it is possible to switch banks by replacing your current one but it is not going to be cheap.

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Mexican Developers Rules

Planning to Buy a Condo?

If you plan to buy a condominium unit in a new or recently completed complex, read this:

Negotiating a fair price, entering a fair contract, choosing the right location, the options and amenities, etc., is not nearly enough, you must have a copy of the CCR’s that will govern the complex and how the HOA will be integrated and how will it be run is also very important, so don’t neglect asking for a copy of the CCR’s and find out if the developer will be controlling the HOA and for how long, also if the developer is to have 2 or more votes per every unit compared to the 1 vote for every resident.

I often hear this from my readers:

“Our community is in the early stages of development; there are 3 dozen lived-in homes. The community is about 2 years old… I have lived here for less than two years. Our developer has appointed a board of directors consisting of three of his employees and not surprisingly maintains solid control of the community.

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Rights And Obligations Contained In Your Real Estate Trust

I know, some of you will give me that look, but chances are that 3 out of 4 people with a fideicomiso are not familiar with the terms and obligations contained in their respective trust agreement.

Common Rights specified in the trust:

  1. To rent the property;
  2. Encumber the property to guarantee obligations such as loans;
  3. Bequeath the trust interest;
  4. Assign your trust beneficiary rights.

Continue reading Rights And Obligations Contained In Your Real Estate Trust