Payments to RE Agent

dmcauley

dmcauley

Guest
If I pay 6% fee to my agent for selling my house, who pays the 16% iva on this portion and do I give it to the agent to pay?

If I get a down payment and the buyer backs out, what percent of the forfeited earnest money should be due the agent.

I am not familiar with selling according to all the new laws in Mexico and I need advice. Thanks Dan
 
dirtsurfer

dirtsurfer

Guest
Good luck! I am waiting for the replies on this. I had a Mexican real estate contract that very plainly stated that all earnest monies go to the agent-I struck the clause from the contract but given the variables of the title companies in Mexico you still may not receive the earnest money in the event of a buyer cancelling. Good you are exploring this on the front side of a transaction and not after.
 
mexicoruss

mexicoruss

Lovin it in RP!
I am no expert but I will toss my experience in. On my latest closing statement it shows the amount of the commission to the agent on one line and the IVA on the next line. I did not dictate how these lines came about so the attorney did it. I believe that in any contract to buy or sell you have the right to come to terms with who pays what and as long as all parties are agreed then that is the way it is done, so if I would have said to my agent I will pay you (%) or a fee) for arranging the deal but I want you to include IVA in what I pay you then the line with the commission would be less than the (% or fee) by the IVA amount so that the following line IVA would have the corresponding amount paid the the government. It is my understanding that you can get this all in writing before any offers are made b ut YOU have to have those discussions with your agent. You do not have such an arrangement if there is more than one agent involved IE an agent from another brokers sells the property for your agent and there is a commission split. This needs to be a part of the closing agreement if you agree to the presented offer or not.

I am going out on a limb on the second one as well, this must be agreed to before you accept an offer, who gets what in the case of a no show.
 
PintoPoint

PintoPoint

Guest
JulieArtist said:
What fees are involved when you are the buyer to the real estate agent, and to the bank trust and what nots.
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We just finished our bank trusts after 8 years. We paid approx 350K for the three properties and it cost us close to 20K with taxes, foreign affairs permit, existing trust cancellation, new trust establishment fee, lawyer, notario, city permits, appraisal, title search. It seemed never ending.
 
Belgianboy

Belgianboy

Guest
PintoPoint said:
We just finished our bank trusts after 8 years. We paid approx 350K for the three properties and it cost us close to 20K with taxes, foreign affairs permit, existing trust cancellation, new trust establishment fee, lawyer, notario, city permits, appraisal, title search. It seemed never ending.
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We just bought and spend about 7% of cost on permits, notario , etc.. 1000k for LLC setup and translation paperwork. We bought so didn't pay the real estate guy. Process took 7 months
 
PintoPoint

PintoPoint

Guest
Belgianboy said:
We just bought and spend about 7% of cost on permits, notario , etc.. 1000k for LLC setup and translation paperwork. We bought so didn't pay the real estate guy. Process took 7 months
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I assume you are buying it outright and not through a Bank Trust.
 
JulieArtist

JulieArtist

Guest
I am not sure if I got an answer-the buyer does not pay the real estate agent in a sale? What if you have an agent that is not the listing agent of the property? How do they get paid?
 
W

wendell

Guest
I am a little confused. Since when did bank trusts get to be transferable? I understand that an AZ LLC could get a bank trust, but did not know you could buy someone's bank trust. The trust has a specific name on it and if you want someone else's name on it , the bank charges you for a new trust. At least that is how I understand it
 
S

Southbeacher

Guest
wendell said:
I am a little confused. Since when did bank trusts get to be transferable? I understand that an AZ LLC could get a bank trust, but did not know you could buy someone's bank trust. The trust has a specific name on it and if you want someone else's name on it , the bank charges you for a new trust. At least that is how I understand it
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I changed names on an AZ LLC-owned bank trust in Mexico by filing the necessary changes through the AZ Corporation Commission, and then with the Mexican bank (by forwarding apostiled documentation from Arizona), who responded with an acknowledgement document.
 
Landshark

Landshark

Guest
Interesting, I wasn't aware that could be done either. Have you received the annual bill since then with the updated names shown correctly?
 
W

wendell

Guest
did the name just change on the trust or did ownership of the trust change. That is two completely different scenarios. If you only change the name of the AZ LLC, the same entity owns the trust. that is different from "buying" a trust as stated in Belgiumboy post
 
T

Terry C

Guest
The LLC is the name of the bank trust. You buy the LLC in the states and there is no transfer of the back trust because it is named wendellMZ45L25 for instance. You change owners of the wendellMZ45L25 LLC and beneficiary...Correct?
 
PintoPoint

PintoPoint

Guest
Terry C said:
The LLC is the name of the bank trust. You buy the LLC in the states and there is no transfer of the back trust because it is named wendellMZ45L25 for instance. You change owners of the wendellMZ45L25 LLC and beneficiary...Correct?
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I was warned to stay away from the LLC because Mexico was cracking down on them. I have not heard anything about it in a while.
 
T

Terry C

Guest
That has always been my thinking on a LLC. A sale of a property in Mexico has Capitol gains and trust fees. I personally would not buy that way. Our trust is in our names and if we sale it would require the new owners to do a trust on the remaining years it has left.
 
S

Southbeacher

Guest
Terry C said:
The LLC is the name of the bank trust. You buy the LLC in the states and there is no transfer of the back trust because it is named wendellMZ45L25 for instance. You change owners of the wendellMZ45L25 LLC and beneficiary...Correct?
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Yes. We bought out partners a couple years ago. So, for instance ABC LLC in Arizona had 4 names (partners) attached to it. We filed the standard LLC name-change documentation in Arizona to remove 2 names, obtained apostiled copy, sent it to the bank-trust bank in Mexico (admittedly, with the help of a notario, just for help with cover letter/delivery), and (months later) received a letter of acknowledgement signed by the bank. And it is still ABC LLC. So if we were to sell, buyers would repeat that process.
 
PintoPoint

PintoPoint

Guest
Southbeacher said:
Yes. We bought out partners a couple years ago. So, for instance ABC LLC in Arizona had 4 names (partners) attached to it. We filed the standard LLC name-change documentation in Arizona to remove 2 names, obtained apostiled copy, sent it to the bank-trust bank in Mexico (admittedly, with the help of a notario, just for help with cover letter/delivery), and (months later) received a letter of acknowledgement signed by the bank. And it is still ABC LLC. So if we were to sell, buyers would repeat that process.
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This would leave the last buyers to pay all the capitol gains, which is great for the seller but not the buyer.
 
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