WHAT ARE ESTIMATED MEXICO CLOSING COSTS
Mexico Real Estate investments can have great returns and strong appreciation as it is a developing country with a rapidly growing tourist infrastructure But as you invest into this Mexico Real Estate Market, it is wise to study all costs and prepare a Mexico investment strategy Below I have put together a list of various taxes and fees due on a simple Mexico Real Estate operation As in my previous articles, I always recommend updating and verifying all quoted costs with your local Mexican Notary Public, Professional Accountants and Professional Lawyers to verify and confirm the figures and factors below mentioned
List of Mexico Closing Cost Items
* Mexico Commercial Value
The commercial value is the amount of the actual agreed purchase and sales priceThis amount is captured on the title or in Spanish called “escrituras” Many of the costs are calculated based on factors against this dollar amount In this article, I am assuming a Mexico Real Estate transaction of $100,000 usd
A. (Mexico Lawyer Real Estate Contract)
I recommend having a regional Mexico lawyer to counsel, and supervise your Mexico property acquisition The Mexican lawyers charge from $300 usd up to $5,000 usd for activities such as elaborating a contract, or reviewing a contract on behalf of the buyer The costs of course depend on the complexity of the property and or of the operation
A-2 (Mexico Lawyer Closing Coordination)
There are many pieces and people to the closing puzzle Coordination of the Mexico Bank trust officers, the notary public, obtaining the correct property documentation is a heavy task such activities and services can be quoted by your Mexico legal representative lawyers.
B (Mexico Title Research)
Title research activities will generally cost from $500.00 to $1,600.00 usd depending on the region In depth searches are recommended on lots and areas outside of main municipalities and such searches will expose any existing liens, history of the property, and any other details pertinent to the property. Title researches to the chain of transfers are the legal responsibility of a Notary Public, but a few buyers choose to have an additional review executed If title insurance is retained, the private title research is a mandatory task
C (Mexico Real Estate Title Insurance)
There are various private companies offering Title Insurance for Mexico Properties Title insurance generally will cost $6.00 to $9.00 per $1000.00 of the purchase price Mexico title insurance is normally required if you are obtaining a loan on your Mexico property by the lenders A few companies that offer such tools: Stewart Title and First American
C-2 (Mexico Escrow )
Although a new tool for Mexico, the escrow account is slowly being introduced and utilized here in the Mexico Real Estate industry. Costs for setting up these accounts range from $500 usd up to $1,250. Again this depends on the complexity of the operation and the dollar amount to be held in Escrow.
D (National Registry of Foreign Investments Mexico)
Any non-Mexican citizen will need to register their investments with this Mexican Government Registrar. If the property being purchased is in a Trust with a Mexican bank, and the seller has a beneficial interest in the property which has been registered under the trust, the buyer will pay only the costs for Assignment of those beneficial rights, bank transfer fees and registration in the Foreign Investment Registry. A permit will be required only if so stipulated in the Seller s Trust. If not stipulated there is no charge for a permit. The charge for registration is the National Registry of Foreign Investments (RNIE) is approximately $ 380.00 dlls. and is required for all transfers of trust properties. These fees are normally included within package deals offered by the bank.
E (Permit from Mexico Minister of Foreign Affairs )
The permit to invest into a Mexico territory will incur an expense due by the buyer.
If the property is not held in a Mexico Real Estate Trust by the seller, it will be necessary to acquire a permit from the Secretary of Foreign Relations to establish such a trust. The application for the permit must indicate the proposed purpose of the property If the property is a vacant lot, the request should include a general development plan; the amount of money being invested and the time frame in which the investment will be made. The permit to establish the 50 year trust is approximately $1,300.00 dlls This expense may be included within package deals offered by some banks.
F ( Mexico Bank Trust / Fideicomiso)
Your Mexican Bank is the organization which the Mexican Government has authorized as being a Trustee for properties held in Trusts. These institutions include multi-national corporations such as CITIBANK, BANCOMER, HSBC, SCOTIA BANK, BANORTE
Amongst others.
Banamex has recently been purchased by the CITIBANK group Citibank
Bancomer has recently been purchased by a financial institution from SPAIN Bancomer
Bital has recently been purchased by the HSBC group HSBC
Scotia Bank has recently been established in Mexico by the Canadian Banks Scotia Bank
Banorte is one of the last remaining Mexican institutions to exist Banorte
The average set up fee for a trust ranges from $800 up to $1,300 usd.
The normal annual trust fees are approximately $500 – $800 usd.
* please note some banks offer packages that include the set up and first year fees in one price
G (Notary Public)
A Mexican Notary Public Notario is an attorney who has passed various rigorous examinations…….
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