Etiqueta: real estate closing

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FIND OUT NOM- 247 OF THE HOUSING SECTOR

Monday, August 21, 2023, By Jessica Hernández, Real Estate Advisor and Marketing Analyst in SILMÉXICO

Last September 19 entered into force the Mexican Official Standard (NOM) 247, which is the one that regulates everything related to Commercial practices- requirements of commercial information and marketing of real estate destined for residential housing and minimum elements that the related contracts must contain.

What is its purpose?

Regulate the implementation of strategies for the commercialization and advertising of real estate, for what is sought with this NOM, to protect the rights of consumers before real estate companies, developers, construction companies and all those involved in the real estate sector.

What does this Mexican Law stipulate?

Among the conditions stipulated in NOM-247 regarding the operation of real estate activities, are:

  • The advertising used by the provider must be true and verifiable.
  • Images and other descriptions must not mislead consumers.
  • Do not use messages that insinuate that the purchase of property makes you have superior personal qualities to those who do not make this purchase.
  • Honesty with the description of the property that is for sale, that is, type of materials, date of construction, etc.
  • Ads that discredit any other institution or brand should not be published.
  • The provider is obliged to inform and respect the prices, rates, guarantees, quantities, qualities, measurements, interests, charges, terms, restrictions, terms, dates, modalities, reservations, and other applicable conditions in the commercialization of real estate.
  • The provider must have the executive construction project in an affordable way, either digital or in physical form.
  • The provider must inform the consumer about the legal status of ownership and/or possession of the real estate.
  • The sale price of the property must be offered in national currency. If it is decided to use another currency, it will be at the exchange rate that governs the place and date in which the payment is made, in accordance with the applicable legislation.

Which institutions are responsible for monitoring compliance with this Standard?

Supervision of proper compliance with NOM-247 is the responsibility of the Ministry of Economy through the General Directorate of Standards and PROFECO (Federal Consumer Attorney’s Office).

Are there consequences for non-compliance with NOM-247 by the supplier?

Suppliers must analyze the effects of non-compliance with the NOM since the sanctions provided for in the Federal Consumer Protection Law indicate fines ranging from $617.41 to $2,414,759.14 Mexican pesos. The Federal Consumer Protection Law establishes that the recidivism of infractions (that is, when the same infringer incurs two or more violations of the same legal precept during the course of one year, counted from the day the first infraction was committed) results in the suspension or cancellation of the Supplier’s operations.

Are you about to sell your house and want to know more about this Standard and other aspects to consider when marketing the property? Contact our advisors at info@silmexico.com, call 951 127 1380, or go to any of our offices in Oaxaca City and Huatulco.

Bibliography: 

    • NORMA Oficial Mexicana NOM-247-SE-2021, Prácticas comerciales-Requisitos de la información comercial y la publicidad de bienes inmuebles destinados a casa habitación y elementos mínimos que deben contener los contratos relacionados, SECRETARÍA DE ECONOMÍA, Ciudad de México, DOF, 22 de marzo 2022, [citado el 21/08/2023], disponible en https://www.dof.gob.mx/nota_detalle.php?codigo=5646251&fecha=22/03/2022#gsc.tab=0 
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FOREIGN COMPANIES AND INDIVIDUALS’S REAL ESTATE ACQUISITION IN PRC

Monday, August 14, 2023, By Nan Chen, Legal assistant

Since July 2006, foreign companies and individuals are no longer permitted to directly acquire and hold PRC real estate for “investment purposes” (eg, greenfield evelopment projects and acquisition of buildings for investment holding and/or leasing). Today, foreign companies and individuals must obtain approval from the PRC foreign investment authority to set up a local company to carry out real estate
investment.

I. INTRODUCTION

According to the current law, foreign companies and individuals may directly acquire PRC real estate for “self-use” or “self-residence” purposes in certain limited circumstances. Foreign companies may purchase a “reasonable quantity” of buildings for self-use for their representative offices or branches in China. Note, however, that foreign companies and individuals from countries without diplomatic relations with China could be restricted from acquiring PRC real estate even for self-use purposes.

II. APPLICATION MATERIALS

For application with the designated bank, foreign individuals and entities need to submit the following materials:

1. Branches or representative offices established by foreign entities

(1) Sales or pre-sales contract for the property;
(2) Approval documents for the establishment of the domestic branch or representative office and valid registration certificate;

(3) Relevant certificates issued by the competent real estate authority regarding the registration and filing of the pre-sales contract of the property signed by the domestic branch or representative office; and
(4)A written undertaking stating that the purchased property meets the principle of self-use.

2. Foreign individuals who have worked or studied in China for more than one year

(1) Sales or pre-sales contract for the property;
(2) Identification certificates;
(3) Valid employment contract or study certificate for more than one year;
(4) Relevant certificates issued by the competent real estate authority regarding the registration and filing of the pre-sales contract of the property signed by the foreign individual.

III. LOANS

In addition, according to a statement issued by China’s National Development and Reform Commission in 2012, medium and long-term loans (i.e. loans exceeding one year in duration) given to foreigners by foreign banks for the purpose of home purchases will not be permitted. This statement applies to all foreign banks in China, which means foreign banks can no longer borrow money from overseas to provide medium and long-term loans to foreigners for the purposes of home purchases.
However, such banks can still use their own funds to provide mortgages to foreigners.
Alternatively, foreigners have the option of seeking home mortgages from domestic
Chinese banks.
Reference

1. https://www.china-briefing.com/news/regulations-on-real-estate-property-purchases-by-foreigners-in-china/

2. https://resourcehub.bakermckenzie.com/en/resources/global-corporate-real-estate-guide/asia-pacific/china/topics/real-estate-law

3. https://www.mohurd.gov.cn/gongkai/zhengce/zhengcefilelib/200607/20060726_1577

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ETHNOBOTANICAL GARDEN OF THE CITY OF OAXACA: A SPACE DEDICATED TO THE CARE AND PROPAGATION OF ENDEMIC PLANTS OF THE STATE.

Friday, August 11, 2023, By Jessica Hernández, Real estate advisor and marketing analyst in SILMÉXICO

Located just behind the church of Santo Domingo de Guzmán, is the ethnobotanical garden, a space dedicated to the safeguarding and study of endemic flora of the state of Oaxaca, it is one of the favorite places of nationals and foreigners who visit the City.

How did this sanctuary come about?

The Garden is part of the Santo Domingo Cultural Center, which occupies the old convent that was built in the 16th and 17th centuries for Dominican friars. The land of the Garden was part of the old orchard of the convent.

This space served as a barracks from the mid-19th century until 1994, and was used as dormitories, parking lots, sports fields, and other military facilities. In colonial times it had other uses linked to the life of the convent, as can be seen in the remains that have been restored inside the Garden: irrigation and drainage channels, ponds, lime kilns, laundry rooms, a ceramic oven, and a paved road for the carts that supplied food and fuel. 

The hundreds of plants that can be seen in the garden began to be planted in July 1998, and since then, the arduous task of collecting, planting, propagating, and caring for them, etc, has been carried out.

Why was it called Ethnobotanical?

In addition to exhibiting the plant species that inhabit the state, this garden was founded to show the close relationship between plants and culture, since a large part of them, both in ancient times and today, are used as food, medicine, condiments, dyes, and have been a source of inspiration in art.

In addition to a nursery, the garden has a seed bank, a herbarium, and a specialized library where visitors can consult information on flora, ecology, and botany.

Do not forget to visit this site on your next visit to the City, and let yourself be surprised by the beautiful flora of the different regions that make up our state. Besides that, it is a place where you will be happy to take more than 1 photo.

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TOPOGRAPHY AND ITS IMPORTANCE IN CONSTRUCTION

Wednesday, August 9, 2023

By Edilberto Bautista Cruz

Civil Engineer at SILMÉXICO

Topography is the science dedicated to the study of land and its forms through coordinates (X, Y, Z), planimetric and altimetric, through which a three-dimensional representation of the terrain can be made. 

This science is one of the primary tools for civil engineering, it is responsible for geometry to process and disseminate information on the physical, geographical, and geological characteristics of a certain terrain to later bring them to a plane and carry out construction projects.

On rough terrain, topography is even more important, as unevenness can make construction difficult and increase costs. 

For example, if the terrain is very steep, it may be necessary to build retaining walls or embankments to level it. Which will result in a significant increase in construction costs.

To measure the surface of the land it is necessary to make use of different techniques, including the use of theodolites, levels, and total stations, to obtain precise information for the creation of maps and plans that help make decisions about the design and building of a project.

Within the construction services offered by SILMÉXICO, we take care of carrying out soil studies with the help of topography,

visiting the site to reconnoiter the terrain, and reviewing where the key points will be, such as the baseline, landmarks, and necessary references. In the case of photogrammetry, a drone is used for a preliminary flight to reconnoiter the terrain and the area, to plan another flight for a later visit, with this information a work table is made in which the surveyor selects which are the coordinate points to be able to do its survey, either with a total station, with a GPSRTK or with a drone, once this work is done, that cloud of points is processed to be able to define the sections and profile that will help to know the conditions of the terrain to seed the architectural project and match it physically. All this is done by returning to the field and restating the tied project.

Once the data has been compared in the field and the office, the work is carried out, in which topography continues to play the main role, since it is in charge of laying out and leveling the land that will be cut to form the platform on which the construction will be planted, the topography will closely follow the entire construction process of the work, since with its guide the outline of the walls and placement of the floor levels will be carried out. Likewise, care will be taken to avoid collapses in the walls and columns during the process. At SILMÉXICO we will help you ensure that your construction is in optimal conditions throughout the process, taking care of each of the vertical and horizontal details.

For more information about our wide range of construction, accounting, marketing, and legal services in the real estate branch, contact us through any of our communication channels,

info@silmexico,

951 127-13-80,

or visit any of our offices in the state of Oaxaca.

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WHAT IS TURN-KEY REAL ESTATE?

Tuesday, August 8, 2023

By Jessica Hernández 

Real Estate advisor in SILMÉXICO

Maybe in your search for your new home or your next investment, you have found properties with the title “turn-key” on real estate websites, and you may not have a clear definition of it.


First, we will set its overall definition, most of the people in the industry mention that a turn-key property is one that is occupied or move-in ready, with appliances in working condition and no obvious structural or electrical issues. Although “turnkey” homes are not fixer-uppers, they may nonetheless require cosmetic upgrades or a refreshing.

    • What are the advantages of investing in turn-key properties? 

    • The benefits of turnkey properties are numerous, especially when you invest within emerging markets. These turnkey properties already reside in strong neighborhoods, so you immediately have a positive property investment in place. 

    • Another benefit of turnkey properties is the rental cash flow they create. And when you work with a real estate investment firm, they help you seek out tenants and show you how to successfully keep them long-term. You’re guaranteed a steady stream of cash flow, which is essential to keep your investment thriving. 
    • While rental income is one of the most common reasons to invest in turnkey properties, the ability to resell is what sets these investments apart. Sure, you can flip a home or build a condo complex for a quick payout, but with a rental property, you’re building equity, generating passive or semi-passive income, and you’ll still have the property to resell.
    • There should be minimal repairs or renovations needed on the property. 

In conclusion, generally speaking, turn-key properties don’t have to be “new” or “modern”, however, they have to be livable and ready to rent out upon purchasing. If they meet those requirements, they are considered turnkey. 

If you found yourself interested, find out about the wide range of real estate that we offer in SILMÉXICO and contact us through any of our different communication channels:

info@silmexico.com 

951-127-1380

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IMPACT AND SIGNIFICANCE OF A LETTER OF INTENT (LOI)

Monday, August 7, 2023

By Shannon Lam- Legal 

Assistant at SILMÉXICO

As part of our consultancy services, at SILMÉXICO we are constantly reviewing and signing documents with our clients. One of these documents that is common in our day-to-day is called a Letter of Intent. A letter of intent, or an LOI, is a formal letter that outlines an agreement between two parties in a commitment to do business together. Depending on the jurisdiction and the particular situation in which they are employed, letters of intent (LOIs) may be subject to different laws.

  1. Preliminary agreement: LOIs are a way for parties who want to engage in future commercial negotiations or transactions to establish a preliminary agreement. They serve as a starting point for subsequent negotiations and help to make sure that each party has a written comprehensive overview of the terms and conditions. The prospective agreement’s key provisions are described in a LOI. It might contain information about the nature of the task, the cost, the terms of payment, the deadlines, the deliverables, and other essential elements of the deal. An LOI helps prevent misunderstandings by outlining these key parameters up front and offers a basis for negotiation.
    1. Details of purchase and sale– location, price, deposit, etc. 
  2. Commitment: Signing a LOI demonstrates the parties’ commitment to and seriousness in pursuing a potential business transaction. It demonstrates a readiness to negotiate and take the deal forward, strengthening the relationship between the parties.
    1. Financial penalties
  3. Negotiation guide: LOIs serve as a guide for later discussions, directing the negotiation process. The parties can concentrate on the last-minute terms and conditions because they serve as a structured beginning point for conversations. This shortens the negotiation process and saves time by highlighting and resolving crucial concerns at the beginning.
  4. Obtaining funding/attracting investment: In some circumstances, Letters of intent (LOIs) can be used to get money or entice investment. An LOI, which outlines the proposed terms of investment and the anticipated benefits, could be presented to potential investors by a company seeking investment, for instance. This could spark attention and start other conversations.
  5. Due diligence: LOIs may include clauses allowing for a period of due diligence, during which the parties may obtain and assess data regarding one another’s enterprises. This makes it possible to evaluate the transaction’s viability, risks, and potential rewards in greater detail before moving through with a final agreement.
  6. Creating a timeline: LOIs frequently specify a deadline by which the parties want to reach a binding agreement. This timetable guarantees that negotiations go swiftly and fosters a sense of urgency. Additionally, it enables both parties to schedule their tasks and distribute their resources appropriately.

Confidentiality: LOIs may have clauses requiring confidentiality or exclusivity throughout the negotiation process. These clauses can safeguard confidential information and stop the parties from negotiating with multiple prospective partners at once, enabling more concentrated and private conversations.

Overall, LOIs are a convenient tool in business, helping to facilitate initial agreements, establishing the ground for discussion, and giving the transaction process structure and clarity. However, it’s imperative to realize that letters of intent are frequently non-binding and subject to further discussion and the signing of a formal contract. 


For this, and more information about real estate processes, please contact us through any of our communication channels: info@silmexico.com, 951-127-1380. Or visit us at any of our offices in the state of Oaxaca.

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THE IMPORTANCE OF SAFE PASSWORDS

Thursday, August 4, 2023

By IT Department

Your passwords are keepers of your accounts online. They protect your personal information such as your financial information from unauthorized access. But, if your passwords are insecure, these can be deciphered by hackers

Strong passwords are of paramount importance because they help protect your sensitive access information will not authorize. Hackers and cybercriminals use various methods to crack passwords weak. These methods include attacks by predetermined lists, attacks of brute force, and social engineering. With the advancement in technology, password formats have become more vulnerable.

A strong password is one that is easy to remember but hard to guess.

Here are some tips for creating a strong password:

  1. Use a combination of upper and lower case, numbers, and special characters. This increases the password complexity making it more difficult to guess.
  2. Your password must be at least 12 characters in length. My name, Francisco, has 9, the longer the password, the attacker will have more difficulty deciphering it.
  3. Avoid using personal information in your password. This includes your name, date of birth, or any information that can be easily “guessed”.
  4. Do not use the same password for different accounts. If an account password was compromised, all your accounts will be compromised.
  5. Change your passwords regularly. This will help you protect your accounts if a password was compromised.

Finally:

 

Take care of the information you share online. Do not share your passwords with anyone else person, even with people you trust. Be on the lookout for social engineering (phishing) scams. Phishing scams are those where you receive an email or go to a web page that tries to trick you into giving personal information, including your password.

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STEPS TO FOLLOW IN THE CONSTRUCTION OF A MEXICAN REAL ESTATE PROJECT

Wednesday, August 2, 2023

By Valeria Cadena Lopez 

Civil Engineer in SILMÉXICO 

Over time, society has tended to invest in real estate projects, because they are one of the most feasible and intelligent investments that offer us a good return, in addition to their increase in purchasing power. If you are interested in investing in real estate, our SILMÉXICO team can guide you on this path.

If you are searching for the acquisition of land, SILMÉXICO will be happy to accompany you, advise you, and offer you the best deals in the state of Oaxaca that suit your needs. 

Once the site is acquired, a construction plan is prepared, which consists of carrying out the analysis-diagnosis, where we list each of the needs and desires of the client, with the experience of our team of engineers and architects, it is possible to develop an executive comprehensive project. 

It is important to carry out a financial analysis to calculate the costs of acquiring materials, construction costs, payments of construction personnel, and indirect costs. To ensure its cost, we consider the percentage of inflation and contingencies, to maintain a budget close to reality to mitigate cost overruns.

We maintain a direct link with our suppliers, which allows us to offer our clients better prices for materials and construction supplies, reducing the cost of construction.

It must be considered, that before starting building your project, our team must obtain the pertinent construction permits and licenses from the corresponding area to be built.

Executive projects are carried out based on the client’s needs, then soil mechanics tests and topographic surveys, to make calculation reports and prepare structural plans to guarantee the safety of your real estate project.

When starting the construction, the preliminary works of the foundation and structure are executed according to the design and structural calculation. Our technical team of specialized labor supervised by the Civil Engineer, allows the correct construction processes in the construction of your project, abiding by the technical construction regulations in force in the State. 

In the end, the delivery of your project is made, with a detailed review where we make sure together with the client the correct functioning of each of the areas, facilities, and equipment, granting the guarantee of your project. 

At SILMÉXICO we have a group of professionals in civil engineering, architecture, accounting, and legal, to make your real estate project a reality. Contact us by phone: 951-127-1380 or visit any of our offices in the state of Oaxaca.

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THE IMPORTANCE OF THE NDA IN A NEGOTIATION AND ITS LEGAL CERTAINTY

Monday, July 31, 2023

By Juan Luis Santiago Medina 

Legal Assistant at SILMÉXICO

Currently, in the corporate world when exposing the idea of ​​working jointly with third parties outside your company, office, or business you tend to expose private or corporate information, however, at the time of any embezzlement within the business that you seek to celebrate, could significantly harm your environment.

But how to protect the personal and corporate data of your company, office, or business within a negotiation?

As legal advisors, within a legal business, we must consider that discretion and confidentiality play a very important role in the success of a business, and that is where those called by the corporate world “NDAs” intervene, which, for Its acronym in English, we will translate it by Confidentiality Agreements, but really, what do we understand by NDA or confidentiality agreement?

According to various legal sources, Confidentiality Agreements are those legal agreements by which the parties establish conditions of use, transfer, or exchange of information that they consider “Confidential” but essential to ensure the success of the negotiation, understood from something fundamental such as address, marital status to more sensitive issues, account statements, company partners, digital signatures, tax status, among others.

To delve into confidentiality agreements, we must understand that they may contain what the parties consider necessary to ensure the personal and corporate protection of their core.

Understanding the concept of the famous NDAs, what are the benefits of signing them?.

  • Certainly, a good business is one that is duly supported, speaking from a legal point of view, which are precisely the pros; 
  • Protection of the intellectual property of your brand, company, or business.
  • Certainty protects the confidentiality of your personal and corporate data.

Protection against embezzlement or bad faith by third parties who, for legal business reasons, have information in their possession.

 

In conclusion, we understand that NDAs are vital and practical tools to protect sensitive information and strengthen the negotiation between the parties so that in case there is any misuse of shared private information, you can always count on the support legal if you have already signed this instrument and you are duly advised.

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OAXACA IS A TOP CHOICE FOR FOREIGNERS LOOKING TO MAKE MEXICO THEIR HOME

July 28, 2023 

By Jessica Hernández

Customer Service

Every year is visible the increase in the number of foreigners who have decided to reside in the country. The most significant number of migrants that entered México in the last 5 years came from the United States, 381K people, and 8,858 people from Canada.

Mexico is already host to a strong contingent of foreign residents who live here full-time or part-time, and although the reasons they tend to cite for choosing to live in Mexico vary, common themes include a welcoming culture, agreeable climates, the delicious flavors and fresh produce, and affordable living costs.

Above all, foreigners are looking for a comfortable life, already retired from productive activities, and they find, in locations close to the Oaxacan capital in the city itself, and on the coast, a pleasant climate, a less expensive economy compared to that of their countries of origin, and a quiet life.

 

It’s not just retired who are seeking change: we’re receiving interest from people in their middle ages, and even some younger working-age people whose transferable skills enable them to exercise their talents in various areas of the ‘knowledge economy’—especially online working, or as they are known and named “digital nomads” 

 

Another attraction for people seeking an alternative lifestyle here is the lower cost of living in Oaxaca—which translates into things like more retirement savings for those still in their working-age, and more sustainable living standards for those on fixed incomes in retirement.

The state has countless landscapes that make foreigners fall in love with them and make the decision of living here. Likewise, retired like Oaxaca due to its nice weather, as most of them come from cold parts of the world, they prefer sunny and warm days in places such is the case of the Oaxacan coast. 

As foreigners come from big cities where the hustle and bustle, and smoke are their bread-and-butter, they prefer tranquil places where they can disconnect from stress and slow down from their usual pace of life. 

 

There is huge investment potential in Oaxaca state. Housing prices are low, while infrastructure, including the 420 Million USD highway and 26 Million USD airport expansion is well underway. This will help result in an appreciation in oceanfront and in the City’s properties in the area.

From its untouched beaches to its rugged coastline and mountainous landscapes with colonial buildings, Oaxaca is truly Mexico’s hidden gem.

If you found yourself interested, find out about the wide range of real estate that we offer in SILMÉXICO and contact us through any of our different communication channels:

info@silmexico.com 

951-127-1380