Most buyers raise the eye brows when we mention the Closing Costs in Mexico which are quite higher than in the US or Canada, so they must be considered in addition to your down payment in determining total funds required to close. No one likes surprises at closing and the precision of closing cost estimates is one of the things buyers like to know before making an offer. Here is a detail description of the all the costs:
- Permit Foreign Ministry (SRE – Permiso de la Secretaria de Relaciones Exteriores) – This is a permit that the Notario processes through their agents. This is required to obtain your fideicomiso.
- Registration in Foreign Investments Registry (RNIE – Registro Nacional de Inversiones Extranjeras) – The Trustee has the obligation to process the registration of the Deed (Escritura Publica) within a 30 day period after the granting.
- Trust Set Up Fee – This is a one-time initial fee to set up your Trust (Fedeicomiso). This is required for property purchased in the Restricted Zone (100 km within border or 50 km from the coastline). When purchasing outside the Restricted Zone (i.e. the interior of Mexico), a lender will require a fideicomiso to facilitate the use of a mortgage loan. A fideicomiso outside the Restricted Zone is not required under Mexican Law. The trust is a Fedeicomiso en Garantia.
- Trust First Year Fee – 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 in addition to your one-time setup fee.
- Notario Fees – These fees are regulated by a fee list authorized by Notario Law, which is valid in every state. These fees can be for a lesser amount, but never for an amount over the fee list.
- Local Transfer Tax (ISAI – Impuestos Sobre Transmision Patrimonnial) – This is equivalent to a state “sales” 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. The tax usually varies between 2% and 2.5 based on the sales price of your property and the State it is located in.
- Registry in RPP (Registro Publico de la Propiedad) – These recordings are processed through the Notario and are based on the sales price of your property for the Trust recording. The Notario processes these through the local Registro Publico de la Propiedad in the state you are purchasing in.
- Certificate of Freedom of Liens (Certificados de Libertad o Gravamen) – 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. A fee will be charged every time a new certificate is issued.
Contact us to get an estimate of your closing costs based on the sales price of the property you are looking to purchase in Jalisco.
