Have you already chosen a property in the Riviera Maya? Congratulations! BUT – don’t forget about the closing costs, an expense that is often overlooked when people make an offer on a property. The good news is, you’ve come to the right place, we’re here to answer any questions you might have about closing costs.
What are closing costs?
- Closing costs are the expenses associated with closing on your property in the Riviera Maya, such as acquisition taxes, appraisals, trust fees for foreigners, bank appraisals, and costs related to the fees and expenses of the Notary. All of these fees must be considered in addition to the purchase price.
- As a buyer, it is important to budget for closing costs, which can be around 7% of the purchase price, depending on the value of the property. The higher the value of the property, the lower the percentage of closing costs. At the beginning of your search, your real estate agent, with the help of a trusted real estate lawyer, can provide you with an initial quote for closing costs. With that quote, you can make a calculation and choose a property according to your total budget.
- Now that we have the magic number, the good news is, you don’t have to worry about paying it upfront. During the purchase process, there will be exact times when you’ll need to start paying closing costs. Initially, the main cost will be the fees paid to your lawyer, who will review the documentation of the property and the purchase contract. Once this is signed, we move forward with mortgage appraisals, trust, and necessary documentation for the preparation of the Public Deed. On the day of the signing, you must pay the taxes and notary costs.
- How much time do I have to pay? It all depends on whether you are investing in a property that is under construction and in the pre-sale phase or a ready-to-move-in property, since as mentioned the closing costs have to be paid at the time of titling the property.
- The most important thing is to know that during this process, your real estate agent will be there by your side, advising you step by step.
Have more questions about closing costs? Don’t hesitate to contact us for more information!