The saga continues. Here is their explanation for this S.R.E. Permit in more detail after nI told them I would not advance any money and I questioned why I needed this permit why I don't own the property:
Thank you very much for your email and for exercising your due diligence. You are completely right, your vacation property is not a deeded property but a “right to use” property, if it was deeded it would definitely simplify this transaction and due to the fact that your property is a “right to use” property your status is not “primary occupant” but “investor”. The Mexican S.R.E. (Secretariat of Foreign Relations) mandates all “foreign investors” who conduct business in Mexico to register with the S.A.T. (Mexican Revenue Service). If we were dealing with a deeded vacation property the Title company would require the Registered Owners (Sellers) to deposit the deed into Escrow and by doing so all the Sellers’ out-of-pocket expenses would be covered and deducted from the proceeds at the time of closing but we are dealing with a non-deeded property outside of our country in which the Resort contract, that you signed in agreement, very clearly stipulates that you, the Registered Owners, must pay a penalty or as they call it “transfer fee” to the Resort prior to transferring your property. On top of that the governing law, which is the Mexican government, mandates all “foreign investors” to register and obtain a Foreigner Registration number through the S.A.T. in order for them to record this transaction so that you may be provided with the necessary documents for your income declaration next year.
If your property was here in the US then the Title Company would be able to make all payment and deduct the funds from your total proceeds at the time of closing. We also have to take into consideration that the Buyer, has complied with his obligations in accordance with the Agreement from La Vista Title (please refer to contract #VT-42301 6th Representation within Clause #8). When La Vista received the notice from the S.A.T. the Buyer deposited the funds in to the Non-refundable escrow account where you and your wife are the beneficiaries. We tried to get him to pay directly to the government but if for any reason the transaction is not fulfilled, the Mexican Government would reimburse the Buyers money to you. LaVista Title must protect the rights of the buyer and for some reason the deal died, the Mexican government would refund the money to you directly not to the escrow account that it was drawn from.
Thank you very much for your email and for exercising your due diligence. You are completely right, your vacation property is not a deeded property but a “right to use” property, if it was deeded it would definitely simplify this transaction and due to the fact that your property is a “right to use” property your status is not “primary occupant” but “investor”. The Mexican S.R.E. (Secretariat of Foreign Relations) mandates all “foreign investors” who conduct business in Mexico to register with the S.A.T. (Mexican Revenue Service). If we were dealing with a deeded vacation property the Title company would require the Registered Owners (Sellers) to deposit the deed into Escrow and by doing so all the Sellers’ out-of-pocket expenses would be covered and deducted from the proceeds at the time of closing but we are dealing with a non-deeded property outside of our country in which the Resort contract, that you signed in agreement, very clearly stipulates that you, the Registered Owners, must pay a penalty or as they call it “transfer fee” to the Resort prior to transferring your property. On top of that the governing law, which is the Mexican government, mandates all “foreign investors” to register and obtain a Foreigner Registration number through the S.A.T. in order for them to record this transaction so that you may be provided with the necessary documents for your income declaration next year.
If your property was here in the US then the Title Company would be able to make all payment and deduct the funds from your total proceeds at the time of closing. We also have to take into consideration that the Buyer, has complied with his obligations in accordance with the Agreement from La Vista Title (please refer to contract #VT-42301 6th Representation within Clause #8). When La Vista received the notice from the S.A.T. the Buyer deposited the funds in to the Non-refundable escrow account where you and your wife are the beneficiaries. We tried to get him to pay directly to the government but if for any reason the transaction is not fulfilled, the Mexican Government would reimburse the Buyers money to you. LaVista Title must protect the rights of the buyer and for some reason the deal died, the Mexican government would refund the money to you directly not to the escrow account that it was drawn from.
