Closing costs can add up pretty quickly when purchasing property in Mexico. They
are significantly higher than what most US/CN citizens are accustomed to finding
on their transactions. There are those real estate agents/mortgage brokers in
Mexico who do NOT educate their clients about these costs and leave it as a
"surprise" for the client once they're too far into the transaction to
reasonably back out. We believe that is unprofessional conduct and refuse to
function in that manner.
It is our position that an educated buyer is a happier buyer. Therefore, we
encourage you to take a few moments and read through this page so that you
will be fully informed of the
closing costs involved.
Your funds
available for a down payment on your home can be determined after taking closing
costs into consideration. These are the standard closing costs. The amounts will
vary according to the Mexican State you purchase within. Loan fees will be in
addition to these Mexican fees and taxes.
Permit of Foreign
Ministry (SRE - Permiso
de la Secretaria de
Relaciones Exteriores) -
This is a permit that
the Notario processes
through their agents.
This is required to
obtain your fideicomiso.
The cost is
approximately $1,300 USD.
National Registry of
Foreign Investments (RNIE
- Registro Nacional de
Inversiones Extranjeras)
- The Trustee has the
obligation to process
the registration of the
Deed (Escritura Publica)
within a 30 day period
after the granting. This
is a fixed fee.
Trust Set Up Fee - This
is a one-time initial
fee to set up your Trust
(Fideicomiso). This is
required for property
purchased in the
Restricted Zone (100 km
within border or 50 km
from the coastline).
When purchasing outside
the Restricted Zone, a
lender may require a
fideicomiso to
facilitate the use of a
mortgage loan. A
fideicomiso outside the
Restricted Zone is not
required under Mexican
Law, but may be required
by your lender. The
trust is a Fideicomiso
en Garantia.
Trust
First Year Fee - There
is an annual fee charged
by the bank to maintain
the Fideicomiso. This is
paid in advance, so you
have to pay for your
first year at closing in
addition to your
one-time setup fee.
Escrow Fee - This
account is normally set
up when you deposit your
earnest money. A
separate escrow account
must be set up through a
title company
(either Stewart or First
American Title) when a
mortgage loan is
involved in the
transaction. Funds for
the real estate
purchase, as well as
loan fees (such as the
appraisal), are put into
the escrow account with
specific instructions of
how this money will be
disbursed. There are
certain fees that are
paid whether the home
closes or not, since
work has been done and
must be paid for. This
is true of the
appraisal, some Notario
fees (including SRE
Permit), and
Certificados de Libertad
o Gravamen (No Liens
Certificate). The fee to
set up this escrow
account is approximately
$550 to be paid for by
the buyer.
Notario Fees - These fees are regulated by a
fee list authorized by Notario Law, which is valid in every state.
Many of our lenders have negotiated a Notario fee of 1.5% of sales price, not to exceed $2,500 USD throughout most of Mexico (fees are higher in Baja and San Miguel de Allende).
Local Transfer Tax (ISAI - Impuestos Sobre Transmision Patrimonial) - This is
equivalent to a state "sales" tax. The Notario Publico is
responsible
to charge and declare this without surcharges. This tax is usually calculated
according to a table, but the Notario is the final determination. The tax
usually varies between 2% and 2.5% based on the sales price of your property.
Registry in RPP (Registro Publico de la Propiedad) - These recordings are
processed through the Notario and are based on the sales price of your property
for the Trust recording and for the mortgage recording. The Notario processes
these two recording fees through the local Registro Publico de la Propiedad in
the state where you are purchasing.
Certificate of Freedom of Liens (Certificados de Libertad o Gravamen) - The
Notario has the obligation to check that the subject property has no liens
against it. This certificate is good for a period of 30 days, and must be
brought up -to-date and re-issued if it expires prior to the closing. A fee will
be charged every time a new certificate is issued.
Estimation of home value for tax purposes (Avaluo y Deslinde) - This is used
exclusively for tax purposes and will not be used by the lender. When applying
for a loan, a separate appraisal will be made by an independent appraiser to
determine the value, which will be used by the lender to determine the maximum
loan amount the lender will grant.
You will be provided a Good Faith Estimate of your total closing costs based on
the sales price and loan amount of the property you are purchasing.
