In December 2021, the Yucatan Congress approved the modification of the General Finance Law, the Fiscal Code and the Law that creates the Yucatan Patrimonial Legal Security Institute (Insejupy) in matters of appraisals. The appraisal in Yucatan is used to estimate the cost of a property, however, in recent years there have been several vices in the process. Which forced Congress to approve this law. If you want to know more, in this post we will tell you all the details.
Why the appraisal is mandatory in Yucatan
The government of the state of Yucatan has a program called “Programa de Reconocimiento de Valores”. The objective of this program is to try to prevent tax evasion. This program is mandatory for houses in the Yucatan area. Homeowners must ensure that their property values are updated every three years and that they are all appraised.
In Yucatan, the appraisal is mandatory for all properties. The appraiser is required to appraise the property to determine its value.
The reasons for this law are two:
1) To prevent tax evasion
2) Avoid real estate speculation
When is an appraisal required?
The appraisal of a property is carried out for several reasons. One of them is to determine the market value of the property. Another reason is to obtain a mortgage loan or cancel the property tax.
The appraisal process can be tedious and time consuming, but it is necessary to protect yourself from any legal problems that may arise in the future.
How to do the appraisal process
The process begins with hiring an expert by the real estate agency. Then, the experts will go to the property and thoroughly inspect it. They will also take photographs and video footage of the property for documentation purposes.
They will use appraisal software to generate a report of their findings that they can present to the real estate agency that hired them.
The last step is for the real estate agency to send this report to a bank to issue a loan if it’s necessary, or approve an offer if not.
Who does an appraisal?
This new provision states that only appraisers registered in the “Insejupy” can do so. In addition, to keep their registration current, they must have had 80% of their operations approved. Otherwise they will be removed from the list.
Pros and cons of the appraisal
The advantage of a real estate appraisal is that it can provide a more accurate assessment of the value of the property. In addition, the appraisals will be backed by the Insejupy. The disadvantage is that it requires more time and costs. In addition, urgent real estate operations can no longer be carried out.
If you want to invest in property in Yucatan, do not be taken by surprise by the appraisal process. Consider the times and costs of it, at the end of the day this is also for your benefit. At Casas en Valladolid we will be available to tell you more details.