This Guide:
A guide on Closing fees in Mexico
When a property is acquired through a Purchase-Offer or when a Trust Transfer Domain is carried out before a Notary Public, in order for them to be legally constituted they must meet with a series of permits and expenses, which are described as follows:
l.- TRUSTEE FEES: These are charged on a yearly basis and are paid upfront. They may vary according to the transaction and considering the property and the trust.
In Addition to this all the Trustees collect the same fee for the Trust Acceptance, which is charged only once.
2.- FOREIGN AFFAIRS PERMIT (SRE): This is a permit that the Notary Public or the Trustee process through their agents and they may cost $3,000. as a maximum fee; this may be in proportion to the agents fees, since the permit fee from the Foreign Relations Office does not vary.
3. NATIONAL FOREIGN INVESTMENTS REGISTRATION (RNIE).- The Trustee has the obligation to process the registration of the Deed within a 30 day period after the granting and the cost per fees and rights may vary according to the Trustee.
4.- NOTARY PUBLIC FEES: These are regulated by a fee list authorized by the Notary Law valid in every State. Normally goes from 1.5% to 2.5 % of the total amount.
5.- PROPERTY ACQUISITION TAX.- This is a State Tax. The notary Public is responsible to charge and declare it without surcharges. In the case of the State of Sonora this takes place within a 30 day period after the granting of the Deed. It is 2% based on the highest value of the previously authorized construction appraisal.
In the case of the State of Jalisco and Mexico City it takes 60 days. This tax is charged based on the construction appraisal value using different percentages and fixed amounts. It is important to mention that in order to calculate this tax you must apply a special procedure and the real closing costs cannot be determined on your own, a notary must determine these costs.
6.- APPRAISAL AND DIVISION: Your cost is calculated depending on the law for appraisals in each State.
7.- PUBLIC REGISTRY RIGHTS.- This permit can be processed through the notary. Once the corresponding rights are paid, the notary will be able to process the registration in the Local Public Registration Office where the property is located. The costs vary as stated by the valid law in every State.
8.- NO LIENS CERTIFICATE
NO LIENS ON PROPERTY TAX, NO LIENS ON WATER OR MAINTENANCE FEES
The notary has the obligation to check that the subject property has no lien. The notary will gather the certificates from the corresponding Government offices and from the Condominium administration. This charge changes between States.
9.- OTHER CHARGES. This depends on the notary and these can be: Travel expenses when there is need to sign documents. Copies and other administrative costs.
10.- TITLE INSURANCE.- This varies according to the value of the transaction and the Insurance company but it should not exceed 0.5% - 0.7%
11.- ESCROW ACCOUNT.- In order to manage the funds for the purchase of a property it is recommended to open an ESCROW. The fees are $500 as opening costs but may vary.
It is important to mention that all the aforementioned expenses are mandatory and they must be made. In the case of a Trust Transfer Domain for a Purchase-Offer you can omit steps 1, 2 and 3.
With this information our clients can determine the real closing costs. Nevertheless, it is very important to visit your notary for assistance or if this is not possible then you should go to a CLOSING COORDINATOR which has qualified personnel to supervise your closing.
All of this information about closing costs it is necessary to have an idea of what your closing costs may be and according to our expertise in this field, we believe is between the 6 to 8% of the total amount of the sale, Capital Gains are not involved.
(ONLY WHEN CONSTITUTING A TRUST)
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