Fideicomiso for buying a property, a convenient deal 2/3

Fideicomiso :

The fideicomiso allows any foreigner in Mexico to purchase a real estate property less than 100km from the border and 50km from the coast.

In order to carry out this transaction, 3 parties are necessary:

The buyer, the bank, the notary (read more here)

All have a specific role in this transaction. This is why having the right people on your side is so important.

However, it is strongly recomended to contact a real estate agent in order to manage all the purchase process.

Fideicomiso : The real estate agent:

The process of buying a property in Mexico is different of others countries and the real estate agent is here to guide you in all your steps.

Fideicomiso : The pre-sale buying process

First of all, it is best to find a real estate agent you can trust.Don’t take the risk of looking for a property alone, real estate agents are there to help you, to advise you and to share with you their different tips to optimize your purchase.
Once you have found your advisor, he or she will help you find the property that suits you and that suits you.
In general, real estate agents know the developers in the region well and will be able to direct you to a particular builder.

Find here real estate inversions through a fideicomiso

Your property found, you will need to reserve the it with the developer.
Your agent will then ask you for all your details (copy of identity papers, proof of address, bank details) and to start the transaction, a deposit will be requested in good faith, usually 5,000 US dollars.

Once the reservation is made, you will have to choose your payment method.If it is a pre-sale, the promoter will offer you several ways to pay for your property.The higher your first payment, the more the promoter will give you a discount on the total price of the sale. This discount can be up to 15% of the total amount.

Then, you can settle the payment on the day you receive your property, checking with your real estate agent that everything is in order, of course.

It is also possible to pay your property month by month until the final delivery of the property.
The payment will only be done with a bank transfer from bank to bank. Cash payment is limited to 720,000 Mexican pesos, of the total amount of the transaction.

Who pays the real estate agent’s commission?

You should also know that for the sale of a new property, the real estate agent’s commission is paid directly by the developer and not by the client.
This transaction is agreed upon from the start with the real estate developer.
If you are buying a new property, the real estate agent should not charge you any commission or fees. If this is the case, close the transaction and look for another agent.

Fideicomiso : Total fees to be paid for the purchase of a property in Mexico

Obtaining the SRE permit will cost approximately 6% to 8% of the sale price. Basicly that includes taxes, notary fees, escrow set up, appraisal fees and any fees related to obtaining approvals

Buyer’s fees (non-trust,  far from the coast and border): 2% acquisition fee, 1% registration fee, 1% notary fee, 2 to 3% administration fees

Buy with a fideicomiso:
1000 USD of setting up the contract
300 or 500USD annual fee

In summary, if you buy your condominio, villa or house, in Mexico, you will have to add between 6 or 7% of the purchase price of your property plus Fideicomiso’s fees to be paid to the bank.