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Real Estate Closing In Mexico
I wanted to provide you with the closing cost estimates on the purchase of a 2 bedroom condo at Las Palomas valued at $185,000 dollars. Our Mexican Attorney was Pablo Davila LL. M.. Pablo is a Mexican Attorney with a Law degree from both the University of Arizona and the University of Sonora Law School. His law firm specializes in purchase/sale agreements, real estate bank trusts, condo regimes, and subdivisions. Pablo had some valuable insight and I wanted to pass it along. You can also visit Pablo’s website for more information about him and his practice at Pablo J. Davila, LL. M Attorney at Law.
To own property in the restricted zone, foreigners must hold their property in a bank trust. The trust is managed for the benefit of the property owner. A bank trust will normally cost approximately $2,800 to establish. Included in the charges are:
bank trust permit
bank trust opening fee
bank trust’s first annual fee
notification of usage of the permit to incorporate the bank trust - which is made at the national registry of foreign investment.
If there is an existing trust already in place only an assignment of rights to the existing trust is needed. The charges in this cases would be approximately $1,800 USD. A charge for obtaining a new permit is not incurred. The turn around time is also shorter if the trust is already in place. So you can see that it would be advantageous to find a Mexican property/condo with a trust already in place.
To the left, I have listed the actual estimates for closing costs provided by Pablo Davida for a 2 bedroom 1200 foot condominium at Las Palomas. Our transaction was all cash, the the estimates do not include loan origination points or other cost associated with a loan transaction. When all is said and done you can expect to pay 6-8 percent in closing costs to purchase a condo in Puerto Penasco, Mexico.