The sellers are responsible for transfering the property free of any debt or encumbrances and all taxes must be up-to-date and current, including all utilities. In case that the sellers also happen to be foreigners, they are responsible for extinguishing their “Fideicomiso” at the banking institution in which their Fideicomiso is under, fees do apply. It is the buyer’s choice whether to keep the existing Fideicomiso in place. However, in case that the new buyer wants to get a new Fideicomiso, he can do so at one of the banking institutions of their choice. Sometimes is best to keep the current one, since all you have to do is a transfer of rights; however, sometimes, is best to get a new one, instead – all depends on the situation. Please, check with your realtor and your Notario about this to make sure.
Capital Gains
In case that there are Capital Gains, then taxes are due, as well, accordingly and if applicable. Sellers are responsible for paying taxes to the Federal Government. The minimum amount to pay for Capital Gains taxes is anywhere from 30-35% of the gains. Mexican citizens are allowed to apply for a waiver of Capital Gains taxes, once every three years, including foreigners with a temporal or permanent residency. The process is not automatic, as you must apply and qualify to be able to get approved for it. You must have all required documentation for it. All documents must be up-to-date and current and they must be turned it in a timely manner, in order to be able to apply and qualify. Please, check with your realtor and your Notario about this to make sure.
Realtor’s Commission
Sellers are also responsible for the realtor’s commission, which is usually 6% plus IVA, added-value taxes, for all of their work involved, which is educate both the sellers and the buyers regarding the buying and/or selling of their property and to make sure that all of the required paperwork is submitted and accepted correctly, the first time. The realtor’s works is being a liaison, concurrently, between the seller and/or the buyer, the Notario, the banking institution and the federal government. Working with a knowable realtor is key to make sure that your sale or buy of a property is done correctly, the first time. In the end, you will be glad that you used the services of a local and knowledgeable realtor, as you will have peace of mind knowing that you did the right thing.
