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Mexican Closing Costs |
FAQ
Note: Closing costs are deductible when you sell your home.
Acquisition Tax - 2% of the Sale Price
Or Transfer 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.
Appraisal Permit Fee - Approximately .075% of the Sale Price
This is used exclusively for tax purposes and will not be used by the lender. When applying for a loan in Mexico, 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.
Public Registry Fee - .3% to .5% of the Sale Price
For the Trust recording and the loan amount for the mortgage recording.
Certificate of no Liens/ no tax debt - A fixed fee of $95
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.
Foreign Affairs Permit & Registration - A fixed fee of approximately $1,600 depending on the exchange rate.
Trust Initiation Fee - A fixed fee of $330 to $770 depending on location
This is a one-time initial fee to set up your Trust (Fideicomiso). This is required for property purchased in the Restricted Zone of Mexico (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 Fedeicomiso en Garantia.
Bank Annual Fee - A fixed fee of $330 to $770 depending on location
There is an annual fee charged by the bank to maintain the Fedeicomiso. This is paid in advance, so you have to pay for your first year at closing.
Notario Fees - These fees vary depending on the Notario
These fees are regulated by a fee list authorized by Notario Law, which is valid in every state. Includes Legal counseling, drafting of the contract and obtaining the "non-encumbrance certificate", the non-debt certificate" (Water rights, property taxes and others.) He will be responsible for calculating all the taxes, and will pay the government.
Transaction Fee - A fixed fee of $550
Escrow Fee - Generally about $500
This account is normally set up when you deposit your earnest money. In Mexico, real estate agents are not allowed to maintain an "escrow account" to hold earnest money, as they do in the United States. A separate escrow account must be set up through a title company (either Stewart or First American Title). 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 which 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).
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