Companies Resources Contact Us	Mexico Foreigners used to be prohibited from owning property in costal areas referred to as The Mexican restricted zone (property located within 100 kilometers miles of the border or 50 kilometers of the Mexican coastline). Now US Citizens and Canadians can purchase property in this zone through a trust or fideicomiso as it is known in Mexico. This trust enables the bank to act on behalf of the purchaser. The fideicomiso is much like any other trust. The bank, acting as the trustee, becomes the official owner of the property and you become the beneficiary. Under this agreement you retain all rights of the property. This includes the right to occupy, rent, repair, or sell the property. The trust is for 50 years and is renewable for additional 50-year periods. In setting up the fideicomiso with a bank, there is a set up fee and an annual fee. The closing costs will APPEAR to be a bit more for your Mexican property than what you are accustomed to in the US. However, In the US there are two sets of fees (buyers and sellers), and if you and the seller split the fees in Mexico, the buyers fees will be similar in amount to the ones in the US. On average, closing costs run between 7%-10%. These include our fee, the bank fee the trustee fee, the property acquisition TAX (equal to 2% of the purchase price, title insurance, escrow services, appraisal, homeowners insurance, and other miscellaneous fees. Below is an approximate breakdown of the fees Legal/Notary fees – 1.25% of loan amount 2% Transfer Tax (based on sales price). Deed Recording Fee (Public Registry)--varies by state, however it is usually between 1-1.25% of the sales price Notario's fee (Notary Public)- this will vary depending on the notary. Usually their fees are around 1% of sales price. Includes the Mexican avaluo, Certificates, Misc. Trust set up fee is approximately $600- $800 with a yearly fee of approximately. $250 - $500. This will depend on the trustee bank. However, an SRE Permit from the Mexican Government is required. This permit costs about $1,700 (depending on exchange rate). Title Insurance: Ask if your development has a "Master Policy" with a Title Insurance Company as this is less expensive for you. Escrow Service average charge $500 - $750 Appraisal Fees is about $800 - $2500 depending on the area ILG Loan Origination Fee: 2% to 2.5% of the LOAN amount (depending on the market). ILG Processing Fee $500.00 and $295 Doc Review/Closing Doc. Bank has about a 1% fee Additional fees $500- $2000 depending on services performed. POSSIBLE COSTS outside of the closing Trust Fund Management - $200(annual fee, if applicable) Hazard Insurance – 0.023% Life Insurance Policy (NOT usually required) Down payments range between 15-40%.   e-mail us