Closing Costs in the Riviera Maya – What You Need to Know Before Buying!
Congratulations on finding your dream property in the Riviera Maya! However, before you pop the champagne, it’s essential to consider the often-overlooked aspect of closing costs. But fret not, because we’re here to guide you through this process and answer any questions you may have.
Understanding Closing Costs
Closing costs encompass various expenses associated with finalizing the purchase of your property. These include acquisition taxes, appraisals, trust fees for foreigners, bank appraisals, and the fees and expenses of the Notary. It’s crucial to factor in these costs in addition to the purchase price.
Budgeting for Closing Costs
As a buyer, it’s vital to budget for closing costs, which typically amount to around 8% / 9% of the purchase price, though this can vary depending on the property’s value. Generally, the higher the property value, the lower the percentage of closing costs. Your real estate agent, in collaboration with a trusted real estate lawyer, can provide you with an initial estimate of closing costs, allowing you to make an informed decision based on your total budget.
Timing of Payments
The good news is that you don’t need to pay all closing costs upfront. Instead, there are specific points during the purchase process when payments are due. Initially, you’ll incur costs associated with your lawyer, who will review property documentation and the purchase contract. Subsequently, expenses related to mortgage appraisals, trust arrangements, and necessary documentation for the Public Deed will arise. On the day of signing, you’ll be required to cover taxes and notary costs.
Payment Timeline
The timeline for payment largely depends on whether you’re investing in a property under construction during the pre-sale phase or a ready-to-move-in property. In either case, closing costs must be settled at the time of titling the property. Throughout this process, your dedicated real estate agent will be there every step of the way, offering expert guidance and support.
Still have questions about closing costs? Feel free to reach out to us for more information! We’re here to ensure that your property buying journey in the Riviera Maya is smooth and stress-free.
