- The Public Registry is a government office where documents are filed regarding current ownership of land titles to see if any liens exist.
In Mexico, deeds are public instruments and can be researched at these offices which are open to the public.
The majority of cities and towns of Mexico have a Public Registry of Property. In a real estate transaction, the notary public conducts a search of the title encompassing a previous 10-year period to verify that there are no liens or encumbrances recorded against the property and also verifies that the seller has the capacity to transfer ownership.
Every property we sell has a lien clearance from the Public Registry to protect the buyer to ensure there are no liens on the property.
BANK TRUST / FIDEICOMISO
- Foreigners can not directly own real estate within Mexico's 'restricted zone' as addressed in Article 27 of the Mexican Constitution.
The restricted zone encompasses all land within 100 kilometers of any Mexican border, and within 50 kilometers of any Mexican coastline. To permit foreign investment in these areas, the Mexican government introduced the “Fideicomiso,” (FEE-DAY-E-CO-ME-SO), which is, roughly translated, BANK TRUSTS.
A Mexican bank is designated as the trustee and holds the title in a trust for investors. The Bank Trusts enables foreigners to enjoy unrestricted use of the beach property in order to realize improvements, expansions, and to profit from the sale or rental of the property without restrictions.
- Mayan Mansions adheres to the US processes of an escrow account, utilizing an impartial third party, namely an escrow company. The third party is entrusted with the job of seeing that the transfer of ownership from the seller to the buyer takes place according to the terms of the written contract agreed upon by all parties involved.
The third-party escrow agent holds any funds securely until the point when every one of the conditions has been realized as instructed by the agreement. The agent then disburses the funds to the designated parties at the assigned time as illustrated in the escrow agreement signed by both the buyer and seller.
- It is customary that the buyer pays the transfer of acquisition tax and their own closing costs, including the Notary's fees and expenses.
- The seller pays his capital gains tax and the broker's commission.
FEES RELATED TO BUYING IN MEXICO
- Closing costs to buy property in Mexico are much higher than the USA or Canada. Once you own your property here you will find cost of property taxes, utilities, groceries, maids, labor, and living expenses in Mexico surprisingly low.
We will of course use our expertise to guide you through the relevant closing costs and assist to minimize these as far as possible. Expect 6% to 8% of recorded sales price .
Catastral Appraisal Fee
Tax Status Research Fee
Closing Coordination Fee
Notary Public Fee
Normally, you will receive your estimated closing costs 4 days after opening escrow. Then you wire your down payment to escrow. Next you receive your legal purchase contract to review and sign.
NOTARY DUTIES / NOTARIOS
During the real estate purchase, the Notario Publico will authenticate all the legal documents, transfer of title, calculate the capital gains tax and ratify all Real Estate transactions in Mexico. If a real estate transaction was not recorded in the Public Registry by a Notario it is not valid.
Although a Notario is a lawyer they will not function as your lawyer, their job in this situation is to be neutral, as the Notario is working for the buyer, the seller and the government, we recommend also using a lawyer to represent your interests.
The lawyer will also ensure there is no human or legal error and that your property title is properly registered, verifying taxes and utilities.