Closing

Once the property is ready to be deed, you will be doing the start closing process and signing of the deed with the Public Notary.

What is a Notario in Mexico?

The Notario Publico is a government appointed lawyer who processes and certifies all real estate and corporate transactions. The Notario is ultimately responsible to the government for the collection of all taxes involved. It is extremely important to remember that a Notario cannot represent you in your real estate transaction; he may offer advice, but he does not, and cannot, “represent” you.

Closing Cost and Taxes

The common practice is that the buyer pays the purchase tax as well as all other closing costs, including the Notario fees and expenses, and the seller pay his capital gains tax and the real estate sales person commission. The process of the closing will generate 3 main fees to be paid:

• Setting up the Bank Trust: There is a charge by the bank to the person desiring the Fideicomiso for the preparation of the agreement and establishment of the trust. In addition, the bank charges an annual fee to cover its services as a trustee. At this moment, the average cost of this process is close the US$2,000.00; The Annual fee in 2023, depending of the bank, will be between the US$490.00 and US$700.00.
• Buyers Tax: Taxes, may vary from state to state, however in the State of Quintana Roo, the Real Estate purchase Tax will be between 3.5-6% of the sale value or agreed price.
• Notary fees: They are based on the purchase price of the property and may vary depending on the notary you choose, normally between 3.5-5%. Every quote of the closing will include the taxes and the notary fees.

Be sure to understand the types closing costs related to the type of property and range of value on the properties you are considering a purchase on.