Who is Responsible for the Closing Costs?
The purchaser pays the closing costs. The purchaser is responsible for paying the Notary`s fees and expenses as well as the transfer (purchase tax), escrow fee and all closing costs related to the sale.
The Seller is responsible for paying the Mexican Capital gains tax (Impuesto Sobre la Renta), if it applies, as well as the real estate fees. The seller also needs to be up to date with all his trust bank fees, property taxes and other payments related to the property, up to and including, the closing date.
The purchaser pays the closing costs. The purchaser is responsible for paying the Notary`s fees and expenses as well as the transfer (purchase tax), escrow fee and all closing costs related to the sale.
The Seller is responsible for paying the Mexican Capital gains tax (Impuesto Sobre la Renta), if it applies, as well as the real estate fees. The seller also needs to be up to date with all his trust bank fees, property taxes and other payments related to the property, up to and including, the closing date.
Can I purchase an Existing Trust/ Fideicomiso?
Yes. You will be taking over the existing trust that is currently in place. It would be wise to check how many years are remaining in the existing trust, since it may be better to establish a new 50-year Bank trust instead.
The initial fee varies from bank to bank; therefore it is a good idea to get a quote from different banks.
Typically, the initiation fee is approximately $500.00 to $650.00 USD, plus an additional, annual fee to be paid in advance. This is almost always the same amount as the initiation fee.
The bank fees are often based on the value of the property, however many banks will typically negotiate a fixed price for a specific time period or for the period of the trust.
How will my property purchase be protected?
On acquiring a property, it is placed in trust with the bank as Trustee (Fiduciario), who, for all technical purposes, is the legal titleholder.
The Trustee and purchasers’ responsibilities are clearly specified within the Bank Trust, which forms part of the title.
The Trustee is responsible for holding the property in trust for the purchaser who is then the beneficiary (Fideicomisario) of the Trust. In conjunction with the Trustee, the purchaser has the ability to rent, sell or transfer the rights to the property.
The Trustee`s (Fiduciario) function is purely an administrative one. The bank Trustee will only act upon written instructions from the Owner/ beneficiary (Fideicomisario) of the property.
Can Expats/Foreigners Purchase Real Estate in Mexico?
Individuals or foreign companies, in their own right, as well as foreigners that own stock in a Mexican corporation, can all acquire properties through different methods depending on their location. In the interior of Mexico, through direct title and through a bank trust in the coastal areas, including beachfront properties.
What is a Bank Trust or Fideicomiso?
A bank trust or what is locally referred to as a Fideicomiso, is the agreement or contract which is contained within the Title deed whereby the bank, known as the trustee (Fiduciario), holds the title for the buyer (Fideicomisario) who, in turn, has all the beneficial rights of use and enjoyment of the property. A new bank trust is normally for a period of 50 years and can be renewed for a further period of 50 years.