TalkBaja.com » Baja Mexico Forums » Building your Baja dream home

I appreciate the info,I am heading down on Tuesday to check it out,I was thinking of using the Settlement company,they seem awfully expensive,the estimate was $6,000 on a $20,000 property,I don't know maybe that's what it costs.

What all is included in the $6K? "Closing costs" is pretty vague. For example, does it include all the costs of setting up a fideicomiso? Notario's fees? Acquisition tax (2%, I think)? Title search or insurance? Some of these charges don't vary with the price of the property. They should break it down for you if they haven't already.

I just went on their web site and they have you put in the purchase price,it had probably a dozen different costs,just seemed a little extreme.

It would be interesting to see a breakdown of the closing costs - $6K on a $20K sale sounds like it includes the bank trust / fideicomiso.

Here is a list of the estimated costs for land costing $20,000
Application & permit fee...............$1,200
Foreign investment regitration.......$700
Appraisal fee...............................$253
Tittle ins.....................................$140
Notary........................................$200
Acquistion fee.............................$400
Public registration.......................$65
Certificate - Propert tax................$10
Certificate - No liens....................$35
Fiduciary acceptance fee.............$440
Fiduciary first annual fee..............$440
Settlement company fee..............$1,800
Telephones,courier,Misc..............$150

Application & permit fee...............$1,200
Settlement company fee..............$1,800

It could just be me but these two items seem to jump out???

The application/permit fee is for the foreign relations ministry, which approves forming the fideicomiso. Here's what I paid about four years ago for a property that I bought for a little under $40K US. The quote you got doesn't seem out of line, as costs would have increased since my transaction. The only thing that seems really off is the notario fees. I paid about $1,870, which included the acquisition tax (2%), public registry, etc., as well as the notario's own charge of about $1,000. $200 seems really low, but maybe the Settlement Co. performs tasks that the notario handled in my case. My acquisition fee (tax) would have been double yours owing to the difference in property value.This is approximate in $USD. The exchange rate was about 10.5-1:

Application & permit fee...............$1,100
Foreign investment regitration.......$650
Appraisal fee...............................$130
Tittle ins.....................................N/A
Notary........................................$1,000
Acquistion fee.............................$800
Public registration........................$70 (incl. other items?)
Certificate - Property tax................$7
Certificate - No liens....................$30
Fiduciary acceptance fee.............$330
Fiduciary first annual fee..............$330
Settlement company fee..............N/A
Telephones,courier,Misc..............N/A = TOTAL ~$4,447 US

So you think this estimate includes the bank trust?

It has to ... the SRE permit, foreign investment registration, and fiduciary fees are all related to the fideicomiso.

Thanks for your help,I will post what happens when I head down tomorrow.

Would love to see some photos of the area...

I have a big tip on buying real estate:
If you wouldn't do it in the old country don't do it here!
And more tips:

1. Get professional help.
2. Demand to see the surveys, plans, and the existing fideicomiso.
3. Use a Realtor that is a member of AMPI ( Mexican Association of Realtors)
4. Use a title/escrow company like Stewart Title Latin America

I have written my first book about buying real estate in Mexico:
Margarita Mind: How to Avoid It; A Guide to Buying Mexico Real Estate Safely & Sanely.
Here is a free link to my first chapter

Buying property in Mexcio is safe. It takes longer and you may become frustrated at times, but keep the dream in your heart!

And remember:
Do it right, from the start.

The issue with closing costs is this:
Some fees such as the fideicomiso, RNIE and SRE are set fees no matter the price of the property.
You can also check with Stewart title Latin America in Cabo San Lucas they do closings and title insurance as well.

The notaria publico fee is usually around $2,500.
Their fee is also a set fee.
the fideicomiso fees as Kate stated are:
the SRE( permit & application) is $1200,
RNIE ( regixstration) is $600
and the fiduciary fees $400-$600 depending on bank and you can choose the bank. I can refer you to a fiduciario if you like.
I just re-verified these fees for my book.
I am the former closing director for a major cross border mortgage company.So I know The fees and processes and the players in every market.

I also suggest Nancy Hevia Notaria #13, she speaks English, is fair, fast and smart.
Her phone: 612 128 7409
nancyhevia@prodigy.net.mx

Stewart Title Latin America:
Iris Cristiani 624 130 7122
Icristiani@stewartlc.com
There are discount coupons from Stewart in my book.
If you have more questions, I am happy to help.

I am reposting this because my answer seems to have gone in the wrong place!
The issue with closing costs is this:
Some fees such as the fideicomiso, RNIE and SRE are set fees no matter the price of the property.
You can also check with Stewart title Latin America in Cabo San Lucas they do closings and title insurance as well.

The notaria publico fee is usually around $2,500.
Their fee is also a set fee.
the fideicomiso fees as Kate stated are:
the SRE( permit & application) is $1200,
RNIE ( registration) is $600
and the fiduciary fees $400-$600 depending on bank and you can choose the bank. I can refer you to a fiduciario if you like.
I just re-verified these fees for my book.
I am the former closing director for a major cross border mortgage company.So I know The fees and processes and the players in every market.

I also suggest Nancy Hevia Notaria #13, she speaks English, is fair, fast and smart.
Her phone: 612 128 7409
nancyhevia@prodigy.net.mx

Stewart Title Latin America:
Iris Cristiani 624 130 7122
Icristiani@stewartlc.com
There are discount coupons from Stewart in my book.
If you have more questions, I am happy to help.

I am back! I did purchase a lot,it was not the lot I originally was interested in,much better and 4 times as big,I found a great realtor,she uses Stewart tittle also,thanks for all the info from everyone,I will try and post some pictures.

Originally Posted by mokmort

I am back! I did purchase a lot,it was not the lot I originally was interested in,much better and 4 times as big,I found a great realtor,she uses Stewart tittle also,thanks for all the info from everyone,I will try and post some pictures.

Congratulations. You can't go wrong with Stewart for title insurance. Did you wind up using The Settlement Company? I've looked into them in the past. They have a good reputation, but you definitely pay for it. They're very expensive.

Originally Posted by safogel

You can also check with Stewart title Latin America in Cabo San Lucas they do closings and title insurance as well.

Does Stewart provide "escrow" closing services now? We used First American's closing services for a property we sold last year. I'll never buy or sell without using them again. Everyone has piece of mind knowing the money is being held somewhere secure, and payments will only be made when proof of performance is provided. I really like Stewart and would probably use them if they provided the same service.

Congratulations mokmort - really looking forward to seeing some photos of where you will stake your palapa on the peninsula...

I tried to post some pictures without much luck,I will try again.

Use the attach files section under Additional Options that is located just below the box you type your post inon your screen. Scroll down and you should see it.

Here is an online guide to assist you.

Let me know if you need help...