Foreign owners of property in Mexico often find it necessary to order an appraisal or valuation for various purposes. This article will delve into the nature of such requests, the required credentials, the preferred language for the appraisal, and other related additional services that may be required. LOGAN Mexico receives numerous appraisal service requests from foreign owners for their custom homes and condominiums in the resort markets of Mexico, including popular destinations like Los Cabos and Puerto Vallarta.
Divorce Appraisal
Origin: When a divorce occurs in the US or Europe, the parties involved must first assess the value of their assets in order to divide them fairly.
Credentials Needed: An appraisal for divorce purposes often requires the expertise of an appraiser with an MAI or SRA certification. The appraisal must be of high quality, and the appraiser’s reputation and relevant experience are crucial factors. If the appraiser is not certified, the opposing party may argue that they lack the qualifications necessary to perform a reliable valuation, potentially leading to disqualification.
Language: English is key in divorce appraisals, as the report will be read and scrutinized by both parties in the English language. However, in some cases, a Spanish written report may be ordered, which may then require translation for effective utilization.
Purpose: The purpose of a divorce appraisal is to help facilitate the division of assets in a fair and equitable manner during divorce proceedings.
Estate Purposes – Death Appraisal
Origin: In the unfortunate event of the death of a family member, an appraisal is often needed to determine the value of the deceased individual’s assets.
Credentials Needed: For estate purposes, the appraiser should hold credentials recognized by local authorities and the IRS or relevant tax authority. These credentials ensure that the appraisal meets the necessary standards and requirements.
Language: The appraisal report can be prepared in either Spanish or English, depending on the preferences of the involved parties or the jurisdiction’s requirements.
Purpose: The purpose of a death appraisal for estate purposes is to assist in the fair division of assets in accordance with legal and inheritance requirements.
IRS Required Appraisal
Origin: An IRS-required appraisal typically arises in the context of financial reporting, such as tax filings or compliance with tax laws in the US or Europe.
Credentials Needed: Appraisers with an MAI or SRA certification are recommended for IRS-required appraisals. These certifications demonstrate the appraiser’s expertise and ensure the appraisal meets the necessary standards.
Language: IRS-required appraisals can be conducted in either English or Spanish, depending on the jurisdiction and the language requirements specified by the tax authorities.
Purpose: The purpose of an IRS-required appraisal is to support tax benefits or comply with the tax laws and regulations of the United States or Europe, providing accurate and reliable valuations for financial reporting purposes.
In addition to appraisals, foreign property owners in Mexico may require other related services, such as title searches, escrow services, or legal assistance, depending on their specific needs and circumstances. It is important to work with reputable and experienced professionals who understand the local market and regulations to ensure a smooth and reliable process for property transactions and valuations.
LOGAN Mexico offers consulting and appraisal services for condos and second homes and works often in the major traditional markets (Los Cabos, Cancun, Puerto Vallarta, Cancun) as well as the up-and-coming markets. Typically, these appraisals are for acquisition purposes, divorce appraisals, estate settlement, litigation appraisals, or for international financing purposes. Sometimes foreigners cannot get a local mortgage and prefer to utilize private lending sources either internationally or locally. International mortgage brokers for second home buyers include: Mexlend, Global Mortgage, CMN Funding. Title and escrow services are provided in Latin America including Los Cabos by TLA, a company that specializes in escrow and title service for second home purchases by Americans and Canadians.