Closing Costs
In addition to establishing a “Fideicomiso” and for paying for the property itself, all buyers are responsible for the “closing costs” of their new property, which includes taxes and fees. These expenses include acquisition taxes, property taxes, certificate of no liens, appraisal of the property, including the “Notario’s” fees for his services for securing title.
“It is important to note that here in Mexico, according to Mexican laws, a “Notario Publico” is the only person allowed to legally handle the sale of a property, among other legal things”.
Here in Mexico, a “Notario Publico” are casually called Notario’s, but in reality, they are real estate lawyers, with years of experience. All “Notario Publicos” are appointed by the attorney general. Therefore, the “Notario’s” job is very important as he needs to make sure that all of the steps are properly and correctly taken, during the sale of a property, in order to secure tittle.
The Notario, in addition to registering the deed of transfer of title in his books, he must also register the real estate sale in the “Public Registry” of properties in the county in which it corresponds. The deed of transfer of title that is registered in the Notario´s books as well as with the Public Registry of properties will contain the entire trust agreement and is the document that will prove that you have rights to a certain piece of real property here in Mexico.
At closing, the day of signing of deeds, all of the payments are due, and the Nortario must make sure that all of these payments have been succesfully taken place, before proceeding to the actual signing of the deed. Payment for “closing costs” and “Nortario’s fees” should be considered at the time of signing.
A few days prior to closing, the Notario will have an “arancel”, which pretty much is a spreadsheet with an explanation of all expenses and fees that are due. The rest of the money owed, which is usually the 90% of the entire sale, of the property is usually wired transferred directly onto the seller’s account. Due to the fact that sometimes, wire transfers take up to 42 hours to take place, especially if they are international, usually the transfer is done a day in advance before closing day. The Notario will require an official receipts from both parties, the buyers and sellers to make sure that the wire transfer was successfully executed. After, the Notario makes sure that the monies are already in the seller’s account and all of the expenses have been taken care of, then, he can proceed with the closing process.
Possession of the property takes place after the money has been received at the seller’s account.
Exchange Rates
Please note that due to the fact that we are in Mexico and the official currency in the country is the peso, we are subject to exchange rates, all depending on how much is the dollar against the peso the day that expenses or payments take place. For the most part, all expenses, including taxes and fess, are done in pesos. However, the purchase price of the property some times can be in US dolars. Why, you may ask? Well, some times, the sellers of the properties happen to be Americans and they want to get paid in US dolars. After all expenses have been paid, including taxes and fees, including the Notario’s fees, the final payment of the property gets done directly to the sellers. For the most part is done via wire transfer directly into their accounts in the United States or in Canada. It is imperative to note that you as a buyer and seller must reatain all receipts, as the Notario will more that likely ask for them; thus, all monies need to be accounted for, due to money laundrying activities.
Although, there has been, and will contiunue to be, succesful sales in the country, the buying and selling of a property in Mexico, or anywhere else in the world, requires the professional assitance of a local and knowledgeable realtor that knows the system and speaks the language and can communicate with all the different and required contacts and stakeholders for a sucessful sale of a property.
If you are thinking of buying property here in Mazatlan and need the assistance of a responsable and professional realtor, please, do not hesitate to contact me with your questions and concerns. I will be more than happy to assist you and make a new client, and in the process, make another friend. Please, let us know how we can assist you. Send us an email, or give us a call to discuss your new property options and to schedule an appointment to personally meet with you. We look forward to hearing from you soon.
