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Closing Costs
When purchasing a property you will have to pay what is known as your closing costs. This is a list of costs that will be broken down for you by your closing attorney. This includes a 2% Mexican acquisition tax, your Fideicomiso fee, Notary fees, attorney fees, certificate of no liens, prorated HOA fees, etc.. The cost of closing fees can vary as some are a flat rate fee and other are calculated based on the purchase price of the property. Other factors come in to play as well like if the property is being financed, if the property needs a new trust or if the purchaser is taking over the old trust and many others. The average closing cost on a property here in Cabo will normally range from 4-7% of the overall purchase price. Here is a breakdown of a simple closing cost fee on a $1,000,000 USD property and on a $100,000 USD property for comparison. This calculation was taken as an example from The Settlement Company.
Property Value (in US Dollars): 100,000
Application & Permit Fee: $1,200.00
Foreign Investment Registration: $700.00
Appraisal Fee: $265.00
Title Insurance: 700.00
Notary Fee: $1000.00
Acquisition Tax: $2,000.00
Public Registration: $325.00
Certificate – No Liens: $35.00
Certificate – Property Tax: $10.00
Fiduciary Acceptance Fee: $440.00
Fiduciary First Annual Fee: $440.00
Attorney Fees: $1,800.00
IVA Tax: $198.00
Telephones, Courier, Misc: $150.00
Total Purchase Cost: $109,263.00
Property Value (in US Dollars): $1,000,000
Application & Permit Fee: $1,200.00
Foreign Investment Registration: $700.00
Appraisal Fee: $400.00
Title Insurance: $7,000.00
Notary Fee: $10,000.00
Acquisition Tax: $20,000.00
Public Registration: $3,250.00
Certificate – No Liens: $35.00
Certificate – Property Tax: $10.00
Fiduciary Acceptance Fee: $440.00
Fiduciary First Annual Fee: $440.00
Attorney Fees: $1,800.00
IVA Tax: $198.00
Telephones, Courier, Misc: $150.00
Total Purchase Cost: $1,045,623.00