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.  

Closing costs on your residential Mexico real estate transaction should be estimated at around 6-8 %. The loan related fees are similar to the US, however the 3rd party Mexico fees are what the majority of the closing costs are associated with.

Municipal Fees
Acquisition Tax = 2% of purchase price
Value estimation for property tax = .18% of purchase price
Public Registry Fee = .5% of purchase price
Certificate of Freedom from Liens = $34

Bank (Trust) Fees
Foreign Affairs Permit & Registration (SRE)= $1300
Trust Initiation = $695
Bank Trust Fee (also paid annually) = $695

Transaction & Legal Fees
Notario Fee = $2750
Translation Fees = $100
Transaction Fee = $550

Escrow & Title
Escrow Fee = $575
Title Insurance (not required, but recommended) = $7 per 1000

Lender Fees
Origination = Case by Case. Please inquire
Underwriting = $400
Administration Fee = $200
Processing = $900
Lender’s Appraisal Fee = .1% of purchase price (max $1500)

This information is brought to you by our associate

Colin Thomas from Baja Capital Mortgage colin@bajacapitalmortgage.com

www.bajacapitalmortagage.com

US and Canada toll free 866-471-6804 Mazatlan 669-117-9875

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