It is very common to hear about transfers, there is a misconception that they are illegal, indeed this type of operations carry a risk, but it is possible to carry out the transfer of a lot of land or house correctly and complying with the Law.
Transfers are needed either because you have bought another property, your workplace changed places, your family grew and the size of the house is no longer enough to live comfortably, or you simply want to acquire another house or more expensive land and require liquidity.
When the original owner of a lot of land without deeds wishes to transfer it to a third party who may be a relative or some other interested person, it is a transfer of land.
How much does it cost to transfer a house or land?
The cost will depend on the value that the property has at that time according to the appraisal that is made.
The Notary, according to the updated value of the house or land and the fees established in the Notarial Law, prepares a notarial quotation breaking down the taxes, rights and fees that make up the deed expenses.
If the house or land has debts such as mortgage or contributions already to water and property, these amounts must be taken into account when negotiating the transfer.
In case the house or land that you want to transfer has debt, can I transfer even without finishing paying? tag.
Yes, it is possible. In the case of the seller, the process is the same. But it is your obligation to let the buyer know that the property has a current mortgage and that it must be liquidated at the time of sale.
It is very important to publicize the existence of the debt from the beginning, since the certificate of freedom of lien will show that the property is mortgaged and if the buyer was not notified in advance, you can generate distrust and lose the business.
The price of the transfer is established according to the appraisal that is practiced to the property. In addition to taking into account the amount owed, a negotiation is made with the buyer.
If you plan to acquire a property with a debt transfer, you should keep in mind that in case you give the money to the seller so that he pays the credit, you run the risk that he does not. And, in that case, the institution that finances the loan can demand, not only the monthly payments, but the total debt.
That is why it is very important to pay the debit directly to the bank. If it is with your resources it must be before a Notary Public and through an assignment of debt. Or, if you prefer, a transfer of the debt with mortgage credit (between the banks they will make the mortgage payment transaction without risk for you).
If the transfer is with the mortgage credit of a different bank, the bank of the mortgage credit of the new buyer must pay the debt to the other bank to cancel the mortgage.
If the person to whom you are going to transfer has approved a mortgage loan in the same Bank, the process is much simpler. Since the bank will simply pass your debt and mortgage to the new buyer.
Once the debt of your mortgage loan is settled, the property will now be mortgaged with another bank and client.
Legal Process Transfer with debt
- Request the balance to be paid to the bank or institution (Bank, ISSSTE or infonavit) at the time of making the transfer.
- The Notary Public states that the Institution received payment from the buyer on behalf of the institution.
- Prepare a deed for the cancellation of the mortgage and for the purchase of the property by a third party.
- A new deed is signed with the new mortgage of the debt that was transferred to the buyer, as well as the transfer of the property.
What papers do I need to make a land lot transfer?
- Contract of Sale, Administrative Agreement or Title of property issued by the competent Authority where the property is located.
- Current official identification, voter credential, driver’s license, Mexican passport or professional card.
- Proof of address not older than 3 months.
- If you acquired the land through a divorce, you will need a certified copy of the judgment. Where it is stated that you obtained the rights to the land you wish to transfer.
Recommendations when making a transfer of land or house lot:
Leave in writing in advance the conditions of the transfer in a contract of promise of sale or assignment of rights before a Notary Public. With these legal documents, the rights and obligations of the parties are made clear, as well as the terms of the celebration of public deed and delivery of the house or plot of land.
It is important that the transfer of land or house lot is carried out legally. We recommend that for no reason the transfer is made verbally. Even if the transaction is with a family member or acquaintance, the lack of formality when opting for the easy way to avoid paperwork and costs generates a significant risk for both the seller and the buyer.