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Hook
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"Closing costs" in Mexico
I recently inquired about some property on the mainland of Mexico. When I asked about fees above and beyond the purchase price, the realtor told me
that assuming the existing trust would be about 2000.00 and that in addition to the cost of the trust that ".....your closing costs are about 6% of
the price that is valued on the property in the trust."
Six percent?????? And I would not even be financing the purchase??? Is this customary? What is this for?
I am not above asking the R.E. agent but I want some background info first.
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Al G
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Hook...It is called lining the pocket of the realtor. That is what it is for in the US.
Albert G
Remember, if you haven\'t got a smile on your face and laughter in your heart, then you are just a sour old fart!....
The most precious thing we have is life, yet it has absolutely no trade-in value.
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Hook
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| Quote: | Originally posted by Al G
Hook...It is called lining the pocket of the realtor. That is what it is for in the US. |
As the buyer, I shouldn't be paying for the agent's fees, at least not DIRECTLY.
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Al G
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I thought Mexico had this "buyer pays all" deal.
Albert G
Remember, if you haven\'t got a smile on your face and laughter in your heart, then you are just a sour old fart!....
The most precious thing we have is life, yet it has absolutely no trade-in value.
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oxxo
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Since I just purchased property in Mexico, I can shed some light on this.
Whenever you purchase a property, you, the buyer, are required to pay a 2% acquisition tax to the Mexican Government. In addition I paid
approximately 2% of the cost to the attorney/notario/translator/bank trustee for processing the paperwork and fideicomiso. This comes out to 4% of
the property cost. If the cost of the property is comparatively lower priced, then costs could go up to 6% to 8% because the
attorney/notario/translator/bank trustee have certain fixed costs. Conversely, if you purchase a higher priced property costs could go down to maybe
3%
This was my share of the fees. The seller also had fees that included a commission to the realtor which was 6% of the sale plus additional legal fees
for terminating his fideicomiso.
Depending on what you are buying, 6% for your costs does not sound out of line. Things are different here in Mexico! 
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aldosalato
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closing costs aprox are as follow for a 200k property
300 appraise, certificate No liens, certificate No due taxes
2,300 USD New Bank Fideicomiso including first year bank fee
4,000 USD 2% acquisition tax
1,200 USD Notary (minimum is USD 900 + 0.15% aprox)
600 USD Public Registry and County Registration
8,400 TOTAL
This is the straight cost of buying a 200k property.
Realtors, Lawyers, Settlement companies, title insurances etc etc are all extra costs that depend a lot on who you are dealing with
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Bruce R Leech
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you are all correct and you are all wrong. I am getting ready to close on a house in Ensenada and I checked it out with one Notary and was told about
5000 dollars. not being a happy camper I went across the street to another Notary and was given a 2000 dollar total cost.
Shop around unless you have money to through around. and in that case come to me and I will do it for you for 10,000
Bruce R Leech
Ensenada
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Hook
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| Quote: | Originally posted by aldosalato
closing costs aprox are as follow for a 200k property
300 appraise, certificate No liens, certificate No due taxes
2,300 USD New Bank Fideicomiso including first year bank fee
4,000 USD 2% acquisition tax
1,200 USD Notary (minimum is USD 900 + 0.15% aprox)
600 USD Public Registry and County Registration
8,400 TOTAL
This is the straight cost of buying a 200k property.
Realtors, Lawyers, Settlement companies, title insurances etc etc are all extra costs that depend a lot on who you are dealing with
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So Aldo, the amount you're showing me amounts to around 4% total. My understanding is that a lawyer doesnt necessarily have to get involved with
this, only a notario, correct?
Also, the realtor talked about "assuming" the existing bank trust. Any savings or advantages to doing this?
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aldosalato
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Taking over an existing Fideicomiso should be a little bit cheaper..........probably you can save 800 USD.
If the property were in La Paz municipality I would charge a fee of 500 USD to follow up the whole process for a transfer of an existing Fideicomiso.
That would add up to a total of 8,900 USD.
A new Fideicomiso I usually charge charge 700-1,000 USD.
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Bruce R Leech
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shop around
Bruce R Leech
Ensenada
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Cypress
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Closing the coasts! Say it ain't so! 
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aldosalato
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In La Paz all Notarios charge almost same since they have a cartel in place with agreed prices
So much for free market in a feudal system..........
Anyway in the States and all around the world it is a total rip-off to buy or sell properties (nowadays at inflated prices). Fixed costs, high
expenses and plenty of taxes with different names. Between buying and selling a property you lost about 10% thanks to the system. So much for your
nest egg store of value.
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Bruce R Leech
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| Quote: | Originally posted by Al G
I thought Mexico had this "buyer pays all" deal. |
this is something you negotiate at the time of sail their is no set way. here in Mulege it used to be that the buyer paid all of the notary service
but that has changed.
Bruce R Leech
Ensenada
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modhatter
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Bruce, Curious as to what Notoria quoted you $2,000. I am assuming that is for his fee alone? I purchased a house in Ensenada recently. When I
went to the Notorio's office, I asked for a breakdown of all of my closing colsts on purchasing the house (Cost $162,000) I was given a small piece
of paper from a small calculator with a bunch of numbers on it. All totaling $6,600 (US) There was no writing on this chit of paper - only numbers.
She would only tell me "verbally" what each one of those numbers were for. However, when I went to the closing, may ACTUAL closing costs came to
over $10,000. Then to make matters worse, after I thougtht the Trust was completed (as it was supposed to be BEFORE the closing), I got word from my
friend who lives there, that they made a mistake and I need to give them $1,600 more to pay the Bank their Trust fees, and simultaniously learned the
Trust had not even been completd. (Still isn't )
So my closing costs (THUS FAR) on a $162,000 house have come to near $12,000. So a word of caution, just because they tell you something or hand you
a chit of paper with no writing on it, don't for a momment assume it a fact. I would not hesitate to say that the Notorio that I went to was crooked.
I read about a month ago on Mexico connect a published article on Closing Costs in Mexico. I can tell you, if the Notorio went by what they are
supposed to be by law, it would have cost me only about $4,000.
We in the US tend to take for granted when some legal entity quotes us costs that we can assume they are correct and lagitimate. This is not the case
in Mexico. My advise to you Bruce is to go back to the Notorio, and see if you can get them to put the closing costs on paper for you. (and not a
calculator chit of paper)
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Bruce R Leech
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| Quote: | Originally posted by modhatter
Bruce, Curious as to what Notoria quoted you $2,000. I am assuming that is for his fee alone? I purchased a house in Ensenada recently. When I
went to the Notorio's office, I asked for a breakdown of all of my closing colsts on purchasing the house (Cost $162,000) I was given a small piece
of paper from a small calculator with a bunch of numbers on it. All totaling $6,600 (US) There was no writing on this chit of paper - only numbers.
She would only tell me "verbally" what each one of those numbers were for. However, when I went to the closing, may ACTUAL closing costs came to
over $10,000. Then to make matters worse, after I thougtht the Trust was completed (as it was supposed to be BEFORE the closing), I got word from my
friend who lives there, that they made a mistake and I need to give them $1,600 more to pay the Bank their Trust fees, and simultaniously learned the
Trust had not even been completd. (Still isn't )
So my closing costs (THUS FAR) on a $162,000 house have come to near $12,000. So a word of caution, just because they tell you something or hand you
a chit of paper with no writing on it, don't for a momment assume it a fact. I would not hesitate to say that the Notorio that I went to was crooked.
I read about a month ago on Mexico connect a published article on Closing Costs in Mexico. I can tell you, if the Notorio went by what they are
supposed to be by law, it would have cost me only about $4,000.
We in the US tend to take for granted when some legal entity quotes us costs that we can assume they are correct and lagitimate. This is not the case
in Mexico. My advise to you Bruce is to go back to the Notorio, and see if you can get them to put the closing costs on paper for you. (and not a
calculator chit of paper) |
that is for all costs and taxes to close on a 100,000 dollar house.
shop around
Bruce R Leech
Ensenada
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comitan
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Bruce are those costs for a Fidocomiso or Mexican title.
Strive For The Ideal, But Deal With What\'s Real.
Every day is a new day, better than the day before.(from some song)
Lord, Keep your arm around my shoulder and your hand over my mouth.
“The sincere pursuit of truth requires you to entertain the possibility that everything you believe to be true may in fact be false”
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Bruce R Leech
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| Quote: | Originally posted by comitan
Bruce are those costs for a Fidocomiso or Mexican title. |
Mexican title.
Bruce R Leech
Ensenada
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Hook
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Much good info here.
Aldo, what would the typical annual fees be on a fideicomiso? If the amount is dependent upon the purchase price of the house, then let's say that
the house is purchased for 200,000.
Does this annual fee vary from bank to bank? Is there one in Mexico that is consistently less expensive?
[Edited on 10-17-2006 by Hook]
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Cypress
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Looks like there's a "hidden cost" of from 5 to 10 percent when making a real estate purchase south of the border.
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comitan
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Cypress
There is no hidden cost (if) you have a reputable Real estate person. The Notario's are reputable (I Think) but they charge different amounts for
there service. Aldo says here in La Paz they are the same, as most Banks are very close on what they charge, they usually give you at least 2
alternative on Cost of living increases, ours is I believe 10% increase every 5 years. Started at $350.00 after 10 years $362.00.
Strive For The Ideal, But Deal With What\'s Real.
Every day is a new day, better than the day before.(from some song)
Lord, Keep your arm around my shoulder and your hand over my mouth.
“The sincere pursuit of truth requires you to entertain the possibility that everything you believe to be true may in fact be false”
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