In order to allow foreigners to begin establishing a Bank Trust, Mexico requires all foreigners to apply for and obtain a permit from the Ministry of Foreign Affairs. This is currently done by the trustee/bank as the initial step at the time a real estate trust is set-up.
TThe Ministry of Foreign Affairs must grant any petition for a trust permit that complies with the stipulated requirements within 5 working days following the date of its presentation to the Ministry's central office in Mexico City. It must be granted in 30 days if the application is submitted to one of the Ministry's state offices.
The Financial Institution will coordinate the elaboration of this permit.
Fill out an application form provided by your Bank, as well as filling out the documents for setting up the Trust. In such document copies of your official identification are needed as well as naming First Beneficiaries, along with naming of Secondary Beneficiaries.
It is possible to establish a Mexican Corporation when you intend to use the property for investment purposes or to purchase multiple properties. Discuss this option with your Buyer´s Representative and/or your Mexican legal counsel.
The training, function and responsibility of a Notary Public in Mexico is completely different than that of USA and other countries. In Mexico, a Notary Public is appointed by the governor of a Mexican state for life in a given geographical location (a town, a district). To seek appointment, the person must be a Mexico licensed attorney. This involves attending law school in Mexico, obtaining a law degree, passing an exam and being admitted to the bar in Mexico. The prospective Notary Public must then work as an apprentice for several additional years with a Notary Public.
A Notary is required to close on any real estate transaction. His responsibilities include reviewing all documents of importance with respect to the sale of real estate, they also attest to the fact that the correct people have signed the particular documents.
A notary does not act as an escrow service. The Notary Public's job is to see that certain formalities have taken place and also collects all taxes and is responsible that such monies are forwarded to the Mexican Tax Authorities. Although a notary is always an attorney, it is not the notary's job to provide any party with legal advice. Any buyer or seller who wishes detailed legal advice should hire a separate lawyer licensed in Mexico.
Yes, it makes more sense to hire a local Notary for efficiencies and logistics.
Yes, on real estate transactions all notary publics by law must fulfill several tasks including reviewing all documents of importance with respect to the sale of real estate, assure signatures assure that certain formalities have taken place, as well as collections of all taxes and is responsible that such monies are forwarded to the Mexican Tax Authorities. The buyer has the option to choose his Notary Public.
The Notary charges fees realize his services. Services such as drawing up the documents, process all the paperwork, request all certificates, request appraisal, request permit, collect and pay all the taxes, collect all of the signatures, and register the deed.
Closing costs are normally 4.5% - 6.5%. As the purchase price lowers the percentage goes up and as the purchase prices raises the percentage goes down. Closing Costs.
Buyers customarily pay the following fees:
Attorneys should also be taken into account when calculating costs.
Please see Closing Costs for further details.