Now that you have finally found your dream home, it’s time to exchange ownership of property. This can only happen once the Offer to Purchase, the Promissory Contract and the Sales Contract have all been accepted, along with the funding of the escrow account. After both the seller and the buyer have come to full terms, the closing process should take no more than 30 to 45 days. The time frame mostly depends on having a clear title and having all the closing paperwork done correctly and in a timely manner.
The Closing Process is Not so Simple
You can help the closing process along by doing certain things. If you’re not a Mexican citizen, then it will be necessary for you to find a trustee bank to hold title of your newly-acquired property. A one-time processing fee of approximately $600 USD will be charged to set up the account. You will also need to cover an annual fee, paid in advance at closing to maintain the trust. This annual fee on average is of $500 USD plus an IVA tax (VAT) of 16%.
Legal Counsel is Essential
Most buyers seek legal counsel specialized in foreign real estate transactions. This helps keep the scheduled closing on point. To do this, you will need to make sure that all the proper certificates, permits, registrations, tax assessments and other required paperwork are ready to go. The list below will outline the basic forms and their average cost that will be the buyer’s responsibility.
- Certificates of no encumbrances and no tax liens – 200 to 300 USD
- Public registration filing fee – 100 to 300 USD
- Appraisal fee – 300 to 500 USD
- Acquisition tax – 2% of the property’s purchase price tax
- Trust permit – amount added to the closing fees will be approximately 1,100 USD
- Foreign Investment Registration fee – 300 to 800 USD
Other Fees associated with the closing are:
- Notary fee – 650 to 1,200 USD
- Attorney fees – This will vary
As you can see, there are a lot of legal documentation that has to be completed and filed accordingly. If any of these forms are mis-filed or returned for any reason, it will prolong your closing and most likely cost you money. In a worst-case scenario, it could cause the buyer to lose the property and forfeit their escrow money.
Work With Closing Process Experts
Having a professional real estate agent that is associated with a reputable agency will eliminate many of these potential problems. Top Mexico Real Estate is a full-service premier agency that provides a variety of services needed to close on your new home. Our Closing Department takes care of everything for you. By working with us, you have a one-stop-shop to save money, time and plenty of headaches. This is something that you really need to consider when selecting who to work with.
In summary, when you consider your closing costs, you need to think of an extra 6 to 7% of the property’s price. Even though this seems relatively high, you will end up saving money on an annual basis. This, in turn, will loosen up money to spend on things you enjoy. Spend it on eating out with friends, doing outdoor activities, and traveling the countryside.
Your Dream Home is Just a Click Away
Our expert Buyer’s Representatives will walk you through the whole purchasing process and take care of you during the closing process of your purchase. These types of in-house services provide convenience and allow your purchase to stay within the scheduled time period, offering you peace of mind. So, start searching for your dream home in the Mexican Caribbean, we got you covered from beginning to end.
And remember, at Top Mexico Real Estate…we make it happen!