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Are homes sold with furniture?

Yes, most homes in this area are sold with furniture, some linen and dishes.
If you are not happy with the furniture, you can always use it until the time you want to replace it, and then all you need to do is call the Bazaar, they will pick up the old furniture and sell it on consignment.

Can I bring a Canadian/American car to Mexico?

U.S. and Canadian drivers who prefer to drive their own cars into Mexico can do so by presenting a valid driver’s license, a major credit card (debit or check cards not accepted), presenting the proper paperwork (proof of ownership or leasing contract, proof of citizenship, tourist card, and a major credit card) at the border crossing, paying a permit fee, and posting a refundable guaranteed return deposit. It is a good idea to make extra copies of all the required documents and keep them in a safe place. The importation permit is valid for 180 days and allows multiple entries. When leaving Mexico for the final time, turn in the permit at the border and obtain a receipt. An importation permit is not needed if you are not driving beyond the 20- kilometer border zone. Auto insurance is not required but U.S. and Canadian auto policies are not valid in Mexico; if there is an auto accident, the driver will likely be jailed and the car impounded until the authorities can sort out the details. Mexican auto insurance can be purchased at the border or from companies online. Auto importation ‘ regulations are strictly enforced; if a car is found without the proper permit, it will be immediately confiscated. For full details on auto importation, goto the Consular Section of the Embassy of Mexico at http://portal.sre.gob.mx/was. Portions of the importation permit process can be completed online at www.banjercito.com.mx.
There is a charge, and it can be applied to your Visa. You will need a certified copy of your car title. You will also need your passport and Mexican car insurance which you can obtain there as well as your drivers license.

Can we bring our furniture into Mexico?

Yes, you can bring all your furniture into México one time only.
Lake Chapala Moving (whom we recommend) will do the moving for you as well as make out all your papers. They will also give you all the info needed to make the move. The cost varies as to the size of the load. Figure it to be at least $8,000.00 to $10,000.00 US; however the company will give you the amount. It is insured and they are excellent.

Cost of Living

Living costs include the prices of food, restaurant meals, gasoline, utilities, medical care, and professional services, among others. Generally, buyers from the USA, Canada, and Europe find that the cost of living in Mexico is much less than in their home countries; a fact that is one of l\1lexico’s great attractions. Buyers should keep in mind that the tradeoff for low cost of living may be a lack of infrastructure and services in “undiscovered” locations.

Rehearse Living in the Location

Buyers, especially those who expect to becom e expatriates, should think seriously about making one or more “rehearsal” visits to Mexico and the particular location in which they plan to purchase property. They should experience the climate and the locale in all seasons. ln areas that have a busy high season, vital services such as transportation may be overcrowded in high season and/or not available in low season. Some may find that the geographic and cultural distance involved in expatriate living, even for a few months at a time, outweighs other advantages. lt is best to find out about these aspects of the location and lifestyle before sinking an investment or retirement nest egg into property in Mexico.

Security and Safety

Personal safety and property security are major factors in choosing a location. Gated communities, seIf-contained resort developments, waIIed-in single family homes, and condominium developments are frequently preferred particularly for property that may stand em pty for long periods of time.

Services and Retail

A variety of shopping options is another important factor. At the very least, buyers will be interested in general shopping such as grocery, clothing, houseware, and hardware stores. As well as a variety of private services such as banking, mail delivery, telecommunications, home and auto repairs, landscaping, spas and beauty salons, International Airport only 25 minutes away, among other things.

Transportation and Access

Buyers from Canada, Latin America, and Europe, not surprisingly, favor locations with good airline connections. The buyers’ means of transportation to the property usually determines locations to consider

Why do Business in Mexico?

Whether drawn by the warm climate, relaxed lifestyle and recreation, or investment opportunities, real estate buyers, both residential and investment, are definitely heading across the borders to Mexico.
lt is estimated that more than one million U.S. citizens, one in four expatriates, live in Mexico year-round or for extended periods of time. 1.5 million U.S. citizens own property in Mexico.
Our clientele includes second-home buyers, retirees looking for a low cost of living and investors, consider the possibility that a profitable portion of your market is “thinking Mexico”.

Will I lose my American/Canadian citizenship if I move to Mexico?

No, you will still be an American/Canadian citizen. How-ever, you will need to have either an FM-T (Tourist Visa) or An FM–3 to live here.
FM-T, Can be obtained at Mexican Border. Costs approx. $ 500 pesos ($50.00 US).
You will need copies of ALL pages of your passport and a copy of a major credit card.
FM-3, Can be obtained either at the Mexican Embassy of your state or here in this area. Costs approx. $3000 pesos ($300.00 US)

Requirements: Copies of all pages of passport, Last 3 bank statements (proving minimum income of $900.00 US per month). Proof of address (Original Telephone & Electric bills, lease or deed), Marriage License or Birth Certificate. Front & right profile pictures measuring 4 cm X 4cm. (Pictures must be taken with no jewelry or eye glasses, and your hair must be off your forehead and ears. Cannot be on instant photo paper).

What is SRE Notification?

This is the fee, a non-Mexican must pay to purchase property in México. Approx. $500.00 each.

What you need to buy Real Estate in Mexico?

a. Passport

b. Visa- With Readable Stamp on Back

c. 10% of Purchase offer Price for Down Payment

d. A notary to oversee and do the closing of the deal

e. SRE Notification.

Buying with Direct Deed

This clause, which is part of the Constitution, is very important for foreign real estate owners. The clause states that the real estate owners agree to be bound by the laws of Mexico and not seek recourse to law in their home countries. Foreigners must sign a Calvo Clause agreement to obtain permission for real estate ownership from Mexico’s Secretary of Foreign Affairs. This clause is usually inserted into property deeds.

Can we get Title Insurance as in the US or Canada to protect us?

Yes, it’s available.

Deposits and Escrow

A deposit of earnest money is expected to accompany presentation of the offer to the seller. A deposit of ten percent is customary.

The practice of escrow in Mexico is in an early stage. There are established companies, such as Stewart Title, among others, that offer escrow services.

Can a real estate company act as the escrow agent? Yes, it can and many do so.

Do they have Clear Deeds in Mexico?

Yes, the only difference between your deed here and the one in the US or Canada, is the deed will be in Spanish.

Do you own the land?

Yes, you own the land. There are restrictions on ocean front property and properties bordering other countries.

TRUST: The property is held in trust by a bank of your choice. Benefits: anyone can be beneficiary, Problems: An annual fee is paid to the bank which raises yearly.

Ejido Land

This body of law, la Ley Agraria, maintains the National Agrarian Registry which oversees disposition, use, and modification of ejido land. Once a parcel of land is totally unincorporated from agrarian control, its registry is transferred to the local Public Registry of Property.

How do I receive title to my Real Estate?

You have a choice of: DIRECT DEED: Similar to the US except beneficiaries must be direct line or spouses….No annual fee

If you should be responsible for paying Capital Gains, how is it figured?

When you purchase your property, a new Avalúo (Tax Evaluation) is done on the property, and when you sell the property, another Avalúo is made. The difference between the two avalúos is considered taxable for Capital Gains tax. It does not matter what you paid for the home, nor what you sold it for. If you make major improvements, like room additions, added a carport, etc, these can be deducted. The Capital Gains can be as much as 25% of the avaluo difference.

Must we pay CASH for a home in Mexico? Is it in Pesos?

Yes, you pay cash, and in American dollars.

Notary Law and Federal Law of Public Brokerage

This law regulates notaries, the public brokers specializing in mercantile and property law. They are entrusted by the Government with the functions of broker, appraisal expert, legal advisor, arbitrator, or public recorder of official documents.

Public Registry

The Registry is the public record of property deeds. The individuals who administer the offices of the Federal Public Registry (RPdeC), centrally or locally, maintain the records.

Steps in the Transaction?

For foreigners, the process of finding and purchasing a property in Mexico follows the same general sequence and principles as in the USA, Canada, and Europe.

Purchasing real estate involves:

1. finding the property

2. negotiating an offer

3. performing due diligence

4. obtaining proper documentation

5. arranging payment

6. closing the transaction

Within the transaction’s sequence of events, there are key differences in procedures, documents, and people involved in the transaction.

“Buying south ofthe border, however, is not like buying property in the United States or Canada, and purchasers must always remember that the process is different than purchasing another house in their neighborhood. Even if you believe you are a savy real estate person, take off your domestic blinders and prepare to look through a different set of glasses. That is not to say that real estate transactions (operaciones) in Mexico are totally different or more complicated… but more awareness, street sense, and patience usually are needed.

What are the Notary Law and Federal Law of Public Brokerage?

This law regulates notaries, the public brokers specializing in mercantile and property law. They are entrusted by the Government with the functions of broker, appraisal expert, legal advisor, arbitrator, or public recorder of official documents.

What does the SELLER pay?

Commission, Capital Gains (if applicable).

What Impacts Property Values?

Factors that influence property values include:

> Access: roads, harbors, and airports
> Infrastructure: streets, water and waste system, communications, telecommunications
> Services: hospitals, medical facilities, retail stores, grocery stores, restaurants
> Community: presence of other expatriates
> Attitude: acceptance by local population of foreigners and newcomers
> Atmosphere: relaxed, traditional, colonial
> Climate: warm weather, year-round spring, or “some like it hotl”
> Recreation: boating, fishing, golf, ecotourism, cultural activities
> Development: variety of property types and price ranges
> Security: gated communities, condo units, self-contained
> Supply and demand: hot seller’s market
> Future development: residential, commercial, recreational

What is a Notary?

*An attorney
*5+ Years apprenticeship with qualified notary
*Special Additional Classes that Speak only on the Transfer of Real Estate
*An Appointment to the Office of Notary for Life, unless they get into serious trouble

What is an Apostille?

ls it necessary for a buyer or seller to be present at the closing in order for the transaction to conclude? Buyers or sellers can grant powers of attorney to third parties who act on their behalf. The grantor should allow the grantee sufficient authority to carry out the intended action but no more than instructed to do.

The power of attorney must be signed before a notary public and “apostiIled” by the Secretary of State in the country in which it was executed.

The apostille is a form of internationally recognized notarization. It is a brief document that when attached to another document authenticates or legalizes it. ln 1981, the Convention Abolishing the Requirement of Legalization for Foreign Public Documents was established. Under this Convention, signed in the Hague, signatory countries agree to mutually recognize each other’s public documents so long as they are authenticated by an apostille. Mexico and the USA are both signatories to this convention, but Canada is not.

Other signatory countries include:
Germany, Argentina, Australia, Austria, Bahamas, Spain, Israel, France, Greece, and Norway.

In countries that are not signatories to this Hague Convention, documents to be used in Mexico must be authenticated by obtaining a legalization or ratification from the Mexican Consulate; the Consulate maintains a list of authorized notaries with samples of their signatures and is able to ratify the authenticity of the notary’s signature.

A closing company can assist with preparing the appropriate power of attorney for the buyer or seller. These powers of attorney are particularly helpful in coordinating the legal presence of buyers and sellers, particularly when one, or both, are foreigners.

For information on signatory countries and downloadable apostille forms, go to www.apostiIIeinfo.com.

What sort of Taxes must I pay for a home in Mexico?

Home taxes here run from $100.00 US to $275.00 per year.

Who must pay Capital Gains?

A SELLER that cannot prove he/she has owned and occupied is property 4 to 6 months (different Notaries use different months). This is usually no problem as long as original utility receipts show ownership as to name and address of the owner. All names on the deed must have a current FM-2 or FM-3 at the time of closing.
Properties that have tax value over $500,000 US approx., must provide original utility receipts for the last 5 years to avoid capital gains.

Who pays closing costs?

The BUYER pays closing costs based on the tax value of property.
Commercial properties pays 15% IVA tax (based on tax value on construction only) plus closing cost.


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