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original deed of house has wrong price


jausten09
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I am selling my house and finally understood that the  notary picked by the buyers found the original deed had the wrong amount of pesos thus I have to pay a large capital gains even though I have the original buyers papers showing the price paid is the same as the price being sold.   The prominent notary just expects me to pay the capital gains.  He did state I would have to go to court but it would be better to pay this large amount that would never be a third of the court fees.   I still want to sell the house and am in contract and will have to move the closing date.  Does anyone know outside a lawyer who has not gotten back to me, where to start?  I will go to another notary to verify this but is court the only way to prove the error and avoid the large capital gains?  The one time exemption does not cover the mistake.  I would think the original notary is to blame but I also was represented by a prominent real estate company here.  No sarcasm please.

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If you originally accepted the peso amount on your deed and allowed the seller to pick his notario instead of you picking your own which is the law in Mexico - buyer picks the notario - I personally think you did get screwed over and no lawyer can easily help you because of what you did. If you do sue it might take a year or two to resolve and you might not win. This is my pure speculation so do what you think is best. Good luck.

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The problem will, indeed, be that you signed off on all of the details at closing.  Therefore, they will probably decide the error is yours.  I can't help but wonder if that might make you complicit in that fraud, if you go to court.  It was common, years ago, to falsify sales prices to reduce the tax and capital gains for the seller. Most foreign buyers were not fluent in Spanish and trusted in 'others' to protect them. It is seldom done now, but you may be in that trap, with no way out.

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You must not have a Temporale or Permanente visa.  If you do have and have not claimed a capital gains exemption in the last 5 (maybe 3 years now) then you have the exemption regardless of the original price on the deed.  Suggest your explore your immigration status option to reduce the tax.  Your notary can also have a survey of improvements to reduce the capital gains in the event you can't change your immigration status.

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A common practice pre 2010 was to put tax value and not real value, there are ways to lessen or avoid capital gains.  

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And.....the ONLY sale price that matters in Mexico for tax purposes is the sale price in PESOS, as mentioned in your deed. Buying a house for xxx number of US dollars in 2010 equals a very different amount of pesos than the same xxx number of US dollars now. So is the peso amount in your deed "wrong" or is it due to the change in the exchange rate between purchasing in 2010 versus now?

Good luck.

 

 

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On ‎2‎/‎23‎/‎2019 at 11:18 AM, Dough said:

You must not have a Temporale or Permanente visa.  If you do have and have not claimed a capital gains exemption in the last 5 (maybe 3 years now) then you have the exemption regardless of the original price on the deed.  Suggest your explore your immigration status option to reduce the tax.  Your notary can also have a survey of improvements to reduce the capital gains in the event you can't change your immigration status.

He  is right   if you are permanente  and can prove this is your primary residence ( if you have more than one, say a rental) you can claim an exemption . Notary said it was 3 years now. Same boat as you bought the house 103,000 more than on the title, but plan to take the exception. If you plan to sell with a realtor , a good one will know all this.

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