Guide to closing costs and fees when buying a home in Cabo

Closing costs

Including the Real Property Transfer Tax, closing costs in Mexico will typically run between 5-10% of the purchase price.  This is in addition to any earnest money deposit and must be added to the total amount of funds to close.  Keep in mind that these costs will vary depending on different factors including the exchange rate at the day of closing.

Escrow Account

When an offer is accepted, an escrow account is set up by the closing agent. All funds for the purchase, including remaining down payment, financing, and closing costs must be deposited prior to closing.  The funds are disbursed according to the instructions signed off at the closing.

Bank Trust Fees

  • Trust acceptance fee: A one-time fee paid to set up your bank trust
  • Trust first year fee: This fee is paid in advance to establish and maintain your Fideicomiso for the first year
  • Foreign Affairs Permit or “Secretaría de Relaciones Exteriores” (SRE): This is a permit which allows you to purchase the property and is processed through the closing agent by the Notario or trustee bank
  • National Foreign Investments Registration or “Registro Nacional de Inversiones Extranjeras” (RNIE): This registration filing must be completed by the trustee bank withing within 30 days of closing
  • Notario fees: By law, there is an established fees list which regulates what the Notario can charge you
  • Property Acquisition Tax or “Impuesto Sobre Adquisición de Bienes Inmuebles” (ISABI): This is paid by the buyer to the municipality, and is equivalent to 2% of the property purchase price
  • Public Registry Rights or “Registro Público de la Propiedad y Comercio” (RPPC): This permit is based on the sales price of your property and the Notario then processes the registration in the local registration office
  • No Liens Certificate or “Certificados de Libertad de Gravámenes”: This is a confirmation that the Notario has checked that the property to be acquired has no outstanding liens on property tax, utilities, or HOA fees

Other Charges

  • Appraisal for tax assessment (Avalúo): Based on recent sale prices of properties in the surrounding area, this assessment is used to determine your home’s relative value for taxation purposes by the government
  • Property Survey (Deslinde):  This is mapping of your property boundaries and other features, including roads and easements

This Cabo real estate buyers guide provides perspectives around financing the purchase of a home or condo in Cabo. Questions? Contact us – we’d love to chat.