Doing Business México 2020 MEX | Page 52

Doing Business 2020 4 Mexico The notary gives the preventive notice to the Public Registry (IRCNL) Agency : Public Registry (Instituto Registral y Catastral del Estado de Nuevo León, IRCNL) Once the deed is signed the notary gives notice to the Public Registry informing of the conclusion of the transaction. The notice will have a validity of 90 days during which this transaction will have the priority over any other recordable action on the property; otherwise, the sale will be valid from the date in which the notice is given. 1 day MXN 337.96; (4 daily UMA of MXN 84.49.) To complete this procedure the notary must present the following: a. Notice with the names of the parties of the transaction b. The purpose of the transaction c. The deed number d. Signature date The notary must bring the documentation to the Public Registry, pay the corresponding fees and receive the confirmation that the notice has been processed by the Registry. The procedure is regulated by Art. 2910 of the Civil Code of the State of Nuevo León. The cost is regulated by Art. 271, Section XII of the Finance Law of the State of Nuevo León. 5 The notary gives notice of the sale to the Cadaster (Dirección del Catastro – IRCNL) Agency : Cadaster (Dirección del Catastro - IRCNL) It is a common practice to update ownership at the Cadaster before starting the registration procedure at the Property Registry. In practice, the Property Registry requests proof that the Cadaster records have been updated with the new owner. In this procedure the changes in property ownership are recorded in the cadastral registry through the notice provided by the notary. To complete this procedure the following documents are presented by the notary: a. Notification of sale form (original) b. Copy of the receipt of payment of the property tax (predial) c. Description of the property The notary presents the sale notice at the Tax Payer Service Department with the required documents. The documents are reviewed and processed by the corresponding department for their approval. After their evaluation the notary returns for the results of the procedure. The procedure is regulated by Art. 29 of the Cadastral Law and Art. 28 of the Regulatory Law of the Cadastral Law. 1 day No cost 6 The deed is registered at the Public Registry (IRCNL) Agency : Public Registry (Instituto Registral y Catastral del Estado de Nuevo León, IRCNL) To complete the registration the notary must bring the following documents: a. Notarized public deed b. Receipt of payment of transfer tax (ISAI) c. Paymet of Income Tax d. Non-encumbrance certificate e. Cadastral value The notary must bring the documentation to the Public Registry and pay the corresponding fees. Once the procedure is completed the notary will come back to the registry to pick up the documentation. The cost is MXN 5 for every thousand or fraction of the property value with a minimum of 5 daily UMAs (MXN 403) and a maximum of 570 daily minimum wages (MXN 45,942). The procedure is regulated by Art. 8, Section IV and Arts. 21, 22 and 23 of the Regulatory Law of the Commercial and Property Public Registry of the State of Nuevo León as well as by Arts. 2901, 2904 and 2910 of the Civil Code of the State of Nuevo León. The cost is regulated by Art. 271, Section I of the Finance Law of the State of Nuevo León. 5 days MXN 45,430; (MXN 5 for every thousand or fraction of the property value) In addition, the notice to the Cadastral Registry must be performed within the month that follows the date in which the ISAI tax was paid. Takes place simultaneously with previous procedure. Page 52