Negotiability of Costs:
Closing costs in Mexico are generally more expensive than in the U.S. Sonoran law states that closing costs are the joint responsibility of the buyer and selle r, unless otherwise agreed. Consequently, buyers should be aware that payment of closing costs is negotiable.
Buyer’s Costs:
Buyers customarily pay the following fees: - Two percent transfer tax based on the higher of the sale-price or appraised value
- Appraisal fee
- Trust bank fees
- Notary fees
- Trust permit fees
- Title insurance premiums
- Deed recording fee
- Fees for real estate professionals and attorneys should also be taken into account when calculating costs.
Seller’s Costs: Sellers customarily pay the following fees: - Certification of the absence of liability
- Certification of the absence of liens
- Capital gains tax on the sale.
Timing of Payments:
Buyers should request an estimate of closing costs before signing any offer to purchase. Most transaction costs must be paid in advance of closing. Preclosing costs include trust bank fees, trust permit fees, some notary fees, document fees (including certifications of the absence of tax liability and other liens), and appraisal fees. In order to reduce the possibility of paying costs for uninsurable property, buyers should obtain an acceptable title insurance commitment on the property before paying any transaction costs. |