How much are Buyer’s Fee’s in Mexico

One of the biggest mistake I see from newer agents is that they don’t address Buyer’s Fee’s during their sales pitch. Buyer’s Fee’s are higher in Mexico, especially in the restricted areas such as the Baja Peninsula.

Buyer’s fee’s or closing cost can range from 3% to 10% of the purchase price for foreigners in Los Cabos.

  • Here is a list of Buyer’s Fee’s:
Fee Description Assessed by/Paid to Explanation of Cost/Purpose
 

ISABI – Acquisition Tax

 

Los Cabos Municipality

 

2% of the Property Purchase

 

Tax Appraisal Permit Fee

 

Los Cabos Municipality

 

This fee is assessed on the purchase price and/or tax appraisal and records the tax Appraiser’s findings with municipal tax office.

 

Public Registry Fee

 

Los Cabos Municipality

 

This is the recordation fee for the Deed of Trust in the Public Registry and is based on your purchase price.

 

Certificate of No Tax Debt – Property tax debt – No Water Debt

 

Los Cabos Municipality

OOMSAPAS (Water Service)

 

The certificates assure that the Seller has no debt recorded on the property. And that no liens have been filed for any reason against the property. This is an estimated flat fee as the cost as fluctuates based on the Peso value. The certificate of no liens is pulled twice in the closing process.

 

Notary Fee

 

The Notary

 

For the legal service associated with the transfer of the title. Including Trust Deed elaboration, trustee bank approval and communication, coordination of all municipal and federal permits, etc. The fee is based on the Purchase price of the property and has a cap limit for properties valued at more then $2mm USD.

 

Foreign Affair Permit and Registration (FAM or SRE)

 

Foreign Affairs Ministry ℅ of the Trustee Bank

 

This requisite permittee is actually two costs – the permit fee, as well as the registration of the foreign Purchaser(s) acquisition in Mexico, and authorization of purchase. This is a fixed fee

 

Trustee Bank Initiation Fee

 

Trustee Bank

 

This fee is assessed for the review and acceptance of the Purchaser’s Trust Deed. This is a fixed fee, generally the same cost as the annual trust maintenance fee (below)

 

Trust Bank Annual Fee

 

Trustee Bank

 

This fee is assessed for the ongoing service of acting as trustee of the Purchaser’s Trust and the associated filing requirements. This is a fixed fee, specified in the Trust Deed at execution and while the fee varies by bank it is generally between $333 – $666 USD annually.

 

Certified Translation Fee

 

3rd Party Translator

 

All documents associated with the Purchaser’s Acquisition but duly translated by a certified translator for acceptance by the Trustee Bank, Notary and Foreign Affairs Ministry. This includes identification, proof of address, corporate or entity documents, etc. Cost is on a per page basis. The cost of the certified translation of the Trust Deed is included, however, in the Transaction fee.

 

Transaction Fee

 

Closing Department

 

To offset the cost of courier services, foreign notary services for document authentication, etc. This is a flat fee.

 

Escrow Fee

 

Escrow Agent

 

The cost of the escrow and supervision. This is a fixed fee.

 

Optional – Title Insurance Fee

 

Title Insurance Company

 

Depending on the Company.

* This table of fee’s was provided by Lic. Javier Mazoy of Lex Advisors.

Closings normally take between 60 and 90 days. This is from the time all necessary documents have been provided by both parties. If you have to deal with HSBC or Scotiabank closing can take up to 180 days.

Part of the Buyer’s Fee’s or closing costs have to be paid up front. Normally I can be between $3,000 – $5,000 USD.  Some company will ask for as much as 50% to the total Buyer’s Fee’s in advance. This can be wired together with your increased Earnest Money into the Escrow Account.

Please feel free to contact me with any questions or doubts you might have. I’ll be more then happy to assist you selling your property.

Martin Posch

martinposch@windermere.com

(624) 147-5857 Mobile 

From the US please dial: +521 (624) 147-5857

 

Posted on September 21, 2017 at 5:01 pm
Martin Posch | Category: Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Closing Costs in Mexico, Club Campestre San Jose del Cabo, Condos in Cabo, Contemporary Homes, Houses in Cabo, Los Cabos Real Estate, Market Report, Martin Posch, Mexico Real Eatate, Seller's Fee in Mexico, Uncategorized, Windermere Los Cabos | Tagged , , , , , , , , , , ,