As part of our commitment to excellence, we go above and beyond most other real estate agencies to ensure that your house closing is smooth and routine with no last minutes surprises which could otherwise derail the closing.
The Closing Process
Congratulations. Once an “Offer to Purchase Agreement” has been accepted, the closing process begins.
Initial and Final Payment
The offer to purchase is always validated by an initial ten percent (10%) deposit, held in a business account (Corporativo Ajijic Real Estate, SC). The deposit is held in U.S. dollars when the offer is in dollars, and in a peso account when the offer is in pesos. The balance is payable upon the signing of all papers at the office of the “Notario” or Notary. Funds are held in the business account during the time needed to complete the closing process.
You’ll receive a detailed statement outlining your closing costs well in advance of your closing date. To ensure the smoothest possible closing, we request to receive full payment of the property at least four (4) working days in advance of the closing.
Obtaining Your Deed
In order to obtain the deed for your property, your sales associate will work with the Notary to complete the following steps:
- Ensure the property is free and clear by checking the Public Registry Office. This is guaranteed by obtaining a no-lien certificate and tax statement from the Treasury Department (Hacienda). Additional checks are made to ensure there are no outstanding water bills or municipal taxes.
- Notifying the Minister of Foreign Affairs to establish direct deed ownership (if applicable). You must apply for this in advance of the closing.
- Establishment of the Bank Trust or Fideicomiso, in case you decide to choose this option.
- Obtain the appraisal for the assessed value of the property.
- Prepare all documents for both buyer and seller in advance of the closing.
When all of these items have been completed, the buyer transfers the remaining funds due into the business account and the Notary presents the legal transfer papers to be signed. The Notary is the attorney of record and the unbiased, official representative of the government. The Notary has a fiduciary responsibility to both parties and sanctions the contract from a tax and legal point of view. The buyer chooses the notary, and pays the notary fees and attendant closing costs directly.
Closing costs are paid by the buyer, and to some extent depend on the value of the property. Your Ajijic Real Estate Sales Associate will supply you with a detailed pre-closing cost estimate from the Notary once an offer is made. Costs include
- Legal Notary fees, including title search fee
- Buyer’s tax
- Property registration and tax certificate fee
- Property appraisal fee
The seller pays capital gains taxes (if applicable) and real estate fees. Simply stated, capital gains is a thirty-five percent (35%) tax on the difference between assessed values at the time of purchase and sale, with adjustments made for inflation. There are numerous Capital Gains laws and rules in place that can help to significantly reduce or even eliminate Capital Gains taxes. Your Sales Associate can provide you with detailed information on future capital gains taxes, and assist you in your tax planning – sometimes in conjunction with a Notary.