Realty, Real Estate, Real Property

Realty, Real Estate, Real Property

We all know what “realty,” “real estate” and “real property” refer to in our day to day lives, but what do these terms really mean?

In legal terms, realty, real estate and real property are the terms used to talk about land and property that has been improved legally in some way. These improvements can include canals, roads, buildings, dams, and wells etc in addition to houses and buildings. Property can thus be divided into real and personal property, both of which are protected by civil laws in all countries throughout the world.

The Real Thing!

The word “real” comes from the Latin word for “thing”, which has come to refer to real estate property. “Real” property is therefore protected by “real” action. The current laws have now distinguished between real and personal property. Real property is the land itself and anything that is attached to the land. Personal property is all personal belongings, which include furniture, clothing, finances, and everything “personal.” Immovable or real property comes with a deed or title of the land, while movable or personal property doesn’t require a title.

Estates, Realty and Ownership Interests

There are different laws for real property, estates, and interests. There are different types of estates and these types of estates are determined by factors such as the sale of the property, a will, a lease, and more. There are rights that come with an estate, and in order to transfer those rights either through a sale, lease or will etc, the estate and property rights have to be determined first.

Here are some more real estate terms that may be of use:

Fee Simple: A fee simple estate can be transferred freely. The fee simple estate is the most common estate, and the tenant can enjoy the use of the property as well as ownership.

Conditional Fee Simple: A conditional fee simple is an estate that can last forever if the deed owner grants these stipulations. If the conditional fee simple is followed, then the property will remain with the grantor, with the possibility of being passed on to another party.

Fee Tail: The fee tail is an estate that is given to an heir if the tenant has passed away.

Life Estate: A life estate is an estate that is also known as a ‘life tenant’, because the estate will continue for the entire life of the grantee. The life estate can be sold, but the duration will continue on as long as the grantee is still living.

Leasehold: The leasehold is a limited term estate. In the contract the lessee and the lessor are invested in the property. The lessee agrees to pay rent to the lessor that has been agreed in the contract.

Montgomery Fruit Company arrival

Montgomery Fruit Company in Banderas Bay

When you think about making a place your second home, you may be interested in knowing a little about its background and history. Banderas Bay has been one of Mexico’s favorite places, where many foreigners have settled and treated it as their home away from home. Many don’t know that this very scenic place has its share of history to tell with many mysterious twists and turns that has influenced much of what it is today. Below you will find some insight into how the Montgomery Fruit Company contributed to Puerto Vallarta and Banderas Bay’s development, thanks to information provided by Facebook group: el Viejo Vallarta, lugar de los Patasaladas (Old Vallarta, place of the salty feet people).

The Arrival of the Montgomery Fruit Company

Montgomery Fruit Company arrival
The Montgomery Fruit Company arrival to Puerto Vallarta (Archive)

It all started when the Montgomery Fruit Company’s representatives arrived to Banderas Bay in 1923 and bought a vast area of land in Ixtapa, which is a town right next to Puerto Vallarta and Nuevo Vallarta. The land measured a staggering 45 thousand hectares and was the Ixtapa Hacienda, then owned by an affluent German resident, Don Alberto Beach. The international company used these lands as an extension of their base in Quito and Guayaquil in Ecuador, bringing their knowledge in the banana cultivation industry.

Bananas For a Living in Ixtapa

The Montgomery Fruit Company began to plant bananas and soon experienced a flourishing economy with abundant harvests during their first two years from 1923 to 1925. However, it was short-lived as a devastating cyclone hit the place causing havoc on the banana plantation. This has forced them to look somewhere and leave the area temporarily until they returned in 1926 with new American investors, which marked a turning point for the region. According to historian, Carlos Munguia Fregoso, at this time, Ixtapa’s economy and infrastructure was much stronger than that of Puerto Vallarta.

An economic boom

Puerto Vallarta

With such rich investment and successful harvests, the Ixtapa town soon became a boom for employment opportunities, commerce and other factors, all of which contributed to a fast economic surge. Soon, there was widespread construction of comfortable wooden houses, irrigation canals and a big hotel to house workers coming from far places like Mexico City and from the mountains that surround Banderas Bay. The Mascota River was the site of a newly installed steel bridge and a new railway was constructed, which efficiently transported the harvested bananas from Ixtapa to Boca de Tomate, from where the harvests would be taken by ship and marketed to faraway places.

Migrants arrive to Banderas Bay

These movements changed the way of life for those living and working in Banderas Bay and Puerto Vallarta. The arrival of workers and migrants of the Montgomery Fruit Company from such towns like de El Cuale, San Sebastian, Mascota and Talpa after the faltering silver industry and Mexican Revolution, brought much progress to the areas. What was most interesting was that the migrants who came to settle in Ixtapa and Puerto Vallarta shared similar cultural backgrounds and customs, and many were already friends or acquaintances. This meant that a sense of community grew up very quickly as people created their new home away from hom.

Corn, Tobacco, Beans and Coconut Oil

Thereafter, the area began to harvest a whole range of regional products, such as corn, tobacco, beans, chilis and coconut oil, all of which were exported by sea, even to Mexican destinations as there were no reliable highways at this time.

The decline of the Montgomery Fruit Company

Come 1931, the Montgomery Fruit Company’s success began to decline, its operation badly affected by the Mexican government’s decision to enforce the “ejido” program. Under this program, local Mexican workers were granted the land upon which they could make their living.

What were once parcels of land owned by the legitimate foreign company were divided and shared among local custodians known as “ejidos”. This eventually forced the company to close.

The Montgomery Fruit Company’s short, but successful stretch greatly affected Puerto Vallarta’s demographics and stature in a very positive way. Its reputation as a proficient port area was then established and its total influence of what Puerto Vallarta today is still felt around the region. It left a legacy that will forever be etched and will have its own place in Puerto Vallarta’s rich history.

CACHITOS DE HISTORIA By Yolanda Pita McCullough; Facebook Groups

Villa La Estancia Residences

Villa La Estancia Residences – Best Year for Second Homes

With only a few pieces of candy and chocolates remaining from the holiday season that has just passed, we all look to the new year for inspiration. With the New Year well and truly begun, everyone is thinking about their plans for a successful 2016. The world finance area saw positive occurrences in 2015, and it looks like the real estate market is looking great for 2016 in Puerto Vallarta and Riviera Nayarit. Now is the time to think about your future, so why not think about you and your family’s future and invest in a second home in Banderas Bay, Mexico?

Why 2016 is the year for a second home in Mexico?

For 2016, the predictions for the economy is looking great! And, this is the best time to invest in a second home abroad. If you are from the United States, Europe, and Canada, then you will find lots of different types of property that are quite affordable, and Mexico is the perfect destination for any second home. Villa La Estancia Residences in Riviera Nayarit, with its range of luxury 2 and 3 bedroom condos on the premises of a 5 star hotel by the beach, even offers developer financing for 2016, which makes it easier for foreigners looking to purchase a luxurious second home easy to do.

Living the highlife in your second home in Riviera Nayarit

You will find the cost of living in a foreign country like Mexico is much lower, which is one of the best reasons to purchase a second home in Riviera Nayarit. Not only does your second home become a viable investment but you get to live the highlife while you are staying in your property by the sea. The exchange rate in Mexico right now is favorable towards those spending dollars, so foreigners will be able to get more for their money when purchasing a home in Mexico as well as be able to afford other luxuries. You and your family will live the highlife in luxury in your second home in Mexico, and you won’t go broke doing it!

Villa La Estancia Residences for 2016

On the Riviera Nayarit in Nuevo Vallarta by the ocean, the Villa La Estancia Residences offer a variety of luxurious choices for properties. The properties offered make an ideal second home for any family, investors, or couples who are looking to purchase real estate in Mexico. Your choices include two and three bedroom sea view condos directly overlooking the beach or pools, penthouses with panoramic ocean views, and much more. Becoming a Villa La Estancia Resident also means that you have access to all of the luxury amenities at the Villa La Estancia hotel, which includes a world class spa, restaurants, gym, pools, room service and more.

Deeded Full and Fractional Second Homes for 2016

In 2016, the Villa La Estancia Residences on the beautiful Banderas Bay offers the chance for you to purchase second homes either on a full time or fractional basis. Fractional ownership is offered for 6 weeks (one eighth) or 13 weeks (one quarter) and are also eligible for developer financing for 2016. When you are ready to purchase and commit to being a full time owner of a second home, then the Villa La Estancia Residences will help you do that too. Buying a Villa La Estancia Residences, Riviera Nayarit in 2016 means that you will live the highlife in your second home!

Vallarta Real Estate Fair 2016

Vallarta Real Estate Fair 2016

The Vallarta Real Estate Fair 2016 will be held at the Riviera Molino Plaza, which is located in the Zona Romantica in Puerto Vallarta on Banderas Bay, Mexico. This is the fourth edition of this event and will be held on Saturday February 20, from 9:00 in the morning until 2:00 in the afternoon. Anyone interested in Mexico real estate, and Puerto Vallarta real estate in particular, are encouraged to attend so that you can meet professionals and other like minded people to learn all the information needed to purchase any type of property in Mexico.

Home buyers, investors and property owners welcome

The Vallarta Real Estate Fair 2016 is recommended for home buyers, investors, and property sellers. Anyone with an interest in real estate will benefit from attending the fair. Even those who may be looking for a change of career. It is a great place to mingle and meet people in the know when it comes to real estate in Puerto Vallarta.

Topics for Discussion at Vallarta Real Estate Fair 2016

The Vallarta Real Estate Fair 2016 promises to bring experts from Mexico, the United States, and Canada to offer valuable information and tips on the process of purchasing property in Mexico and taxation. There will also be all types of exhibitors who are there to answer questions and give advice on Mexico property ownership, notary services, insurance on properties, banking in Mexico, rental potential, architecture and interiors, and there will also be exhibitors who offer advice on health and wellness.

The Panel of Real Estate Experts

The most important advantage of attending the Vallarta Real Estate Fair 2016 is the Panel of Professionals who will offer valuable information for investors and property owners. Speakers include, Cameron MacIntosh, a Canadian accountant, Cindy DuChateau, an accountant from the United States, Carl Timothy from Timothy Real Estate Group, Jessica Riedesser, a real estate attorney, and one of the top Mexican tax specialists who will talk about rental revenues, capital gains, and how the two are handled between Mexico and your home country.

The Vallarta Real Estate Fair 2016 will have more than twenty exhibitors providing valuable information for anyone with an interest in real estate in Puerto Vallarta and Mexico.

When: February 20th starting at 9:00 am to 2:00 pm.
Where: Rivera Molino Plaza, in the Romantic Zone (Old Town Vallarta).

Mexico Property Advice

Mexico Property Advice

If you are thinking about purchasing property in Mexico but you are a bit wary, you are not alone. While there really is nothing to fear when it comes to purchasing real estate in Mexico it can be a bit daunting, and you are right to be here seeking some Mexico property advice before making your investment. This article is aimed at people like you who want to find out more about Mexico property purchasing.

Mexico Property Advice

Get help from someone you trust

It is recommended (but not essential) that you hire an attorney who is familiar with property laws in Mexico and who can speak both Spanish and English. Working with a reputable professional real estate agent whom you trust is another alternative. You will however, need the services of an accredited notary public.

Select the property you want, then verbally agree on a price

The first step is to find the appropriate property for your requirements and desires then agree a price verbally.

Get a sales agreement (Convenio de Compra/Venta)

The next step is to get a “Convenio de Compra/Venta” also known as a sales agreement, which is where your attorney or notary will come in handy. This agreement should cover all the property costs, any exclusions or inclusions and a deposit (generally 5-10%, and if you cancel your purchase, then the deposit is non-refundable).

Property Trust

Non Mexicans need to set up a property trust known as a fideicomiso if the property that you are wanting to purchase is within the 50km border zone, which includes the coastlines. If the property is not within the border zone, then usually no trust will need to be set up. This can be done at most reputable banks and is recommended over having some private third party “lend” their name.

Permission to purchase land

The Foreign Secretary Office must grant permission for you to purchase land in Mexico, and this permission is called the “Calvo Clause”, which states you are not seeking any foreign jurisdiction for the property you are wishing to purchase.

Consulte a Notary Public

If the property that you are purchasing is being sold by a real estate developer, then seek advice from a Notary Public, so the Notary Public can check for all permits. If you are buying directly from the seller, you will need the help of notary to ensure that all tax bills, utilities bills and any service fees on the land have been paid.

Ask to see a copy of the deed

Ask the seller of the property for a copy of the property deed. The Notary Public will make sure the deeds are legal and you should ask the Notary Public to make sure the land is not ejido land, which means that its sale is restricted.

Immigration Status

Make sure that your immigration status is legal when you purchase. That means you will need to have a valid 6 month tourist permit or official visa, so the Mexican government knows you are legally allowed to be in the country.

Prepare Documents

Make sure you have copies of any marriage or birth certificates, your passport, migratory documents, etc and be prepared to have them translated by an official translator (known in Mexico as a “perito”) and apostilled.

Capital Gains Tax

The seller is responsible to pay all Capital Gains Tax unless you, the buyer, have agreed to pay or divide these taxes.

Final Payment

The final payment will be made at the notary public’s office at the signing. You may wish to have your attorney with you when paying with cash or financing from a bank.

If you would like anymore Mexico property advice, click here.