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What is it? Is it Safe? Get all the information you need about purchasing real estate with a Constancia de Propiedad in Yucatan.
Living in the Yucatan can be an exciting experience, but there are many things that are done differently to other parts of Mexico. There are Yucatecan customs, foods, and words that are not found anywhere else.
These differences are present even in Yucatan real estate: in the way of doing business and in the process of buying and selling properties.
Something unique about the Yucatan is the use of a “Constancia de Propiedad”, a document that is used mostly in rural areas and towns.
What is a Constancia de Propiedad?
This legal document is a Proof of ownership, a contract between two individuals, which is carried out by a lawyer, clerk or municipal employee who attests that both parties involved have reached an agreement.
For years, this has been a low-cost alternative for people who live in rural communities. While the cost of a deed can range from 12 thousand pesos to hundreds of thousands, depending on the cost of the property, an ownership certificate does not exceed 5 thousand pesos.
Constancia de Propiedad, is it safe?
As professional realtors, we have a team of lawyers that research the property of your interest, to make sure that there are not any legal problems. This process also has a field research component, as the lawyer thoroughly investigates the background of the property with the neighbors.
There are towns where all properties have only Constancia de Propiedad, so it is highly unlikely that they would declare the Constancia invalid, since all the population only has this document proving ownership.
Can I get a deed?
In Yucatan, the law allows owners of lots of up to 600m2 (6458.35 sqft) to get formal deeds for their property. To achieve this, you only have to comply with a series of requirements.
For properties greater than 600m2 there is also the possibility of regularization, but the success rate is only 70% and it is a long process that can take up to two years to complete.
What are the pros and cons of buying a property with Constancia de Propiedad?
Low cost, the properties have a lower cost and the legal fees are about 250 USD.
There is no property tax payment.
Construction permits are not required.
Over time, the government makes regularization projects, when it is possible to obtain the deeds at a low cost.
When you find a property that you like and the investigation is carried out, sometimes problems arise with the property and the sale fails.
It is much more difficult to sell a property that only has Constancia de Propiedad. We have clients that invested huge amounts of money building their house, and they are left without being able to sell because of the lack of legal certainty.
It’s no man’s land. Just as you do not pay taxes or permits, in case there is a problem with a neighbor, the authorities generally cannot intervene.
Constancia de Propiedad, yes or no?
At Casas en Valladolid, we rarely handle properties with Constancia. In our experience, many properties have some detail that prevents us from proceeding with the sale.
The most frequent problem we have found is that when our lawyers do the investigation, they find some old deed for the property and it has precedence over any proof of ownership or Constancia de Propiedad.
While finding a property for sale at a fraction of the price can be very tempting, it is important to keep a cool head and avoid getting too excited until the lawyer has given the green light.
In any case, our recommendation is that if it is a cheap property in Valladolid that you can buy and get a deed for, purchasing is a good idea, as long as you are not planning to build something big and luxurious in it.
If you are planning to buy a lot with Constancia de Propiedad to build a massive house, you have to love it and be determined never to sell it, because finding a buyer for this property will be very challenging. Most of our clients are put off by the idea of buying anything that does not have a deed.
If you're interested in knowing more about the Constancia de Propiedad, contact Casas en Valladolid, the leading real estate agency in Valladolid, Yucatan.