Home Bank Trust Oportunidades / Business Opportunities Lotes / Lots Casas de Sueño / Dream House Proyectos Nuevos / Incoming Projects E-Mail Bank Trust BANK TRUST Steps to purchase a property 1. Make a writing offer 2. Sale and purchase contract 3. Bank Trust In accordance with Mexican regulations, no foreigner can hold property titles in the so called prohibited zone which is a 30 mile strip along the Mexican coast. The trust was created by the Mexican government in order to protect foreign investors who wanted to have properties by the seashore. The property is registered under the Bank´s name and the beneficiary is the buyer who is the only one with the right to use, rent, sell etc. the property. In other words the real owner is the beneficiary. The bank only acts as administrator of the trust and a legal body. The trust has a 50 year term and can be renewed and transferred. The paperwork for the establishment of a trust is made by a notary who, in Mexico, is the legal authority and representative of the government, and part of its functions , besides the elaborations of the trust, is to see that the properties are free of liens . CLOSING COST The closing cost is between 5 and 8 per cent of purchase price . The difference in percentage is due to the fact that the price of the permit and the banks fee are fixed, whatever the price of the property. The closing cost are as follows: a. Authorization by the ministry of Foreign Affairs for the elaboration of the trust. Permit $ 900.00 US dls Paper work $ 100.00 US dls $1 000.00 US dls b. Bank fees Notice to freeing investment $ 300.00 US dls Inscription and signature $ 350.00 US dls First annually fee + tax $ 400.00 US dls $1050.00 US dls c. Property taxes: 2% d. Public registry: 2% e. Notary fees: 1,5 % + tax f. Miscellaneous: 1% Here are three examples of closing costs: 1 .-Price of the deal $ 100 , 000.00 US Closing cost: Permit $ 1 000.00 Bank fees $ 1 100.00 Property taxes $ 2 000.00 Public registry $ 200.00 Notary Fee $ 1 725.00 Miscellaneous $ 1 000.00 Total Closing cost 7.5 % $ 7 025.00 US dls 2 .-Price of the deal $ 500 000.00 US Closing cost: Permit $ 1 000.00 Bank fees $ 1 100.00 Property taxes $ 10 000.00 Public registry $ 1 000.00 Notary Fee $ 8 625.00 Miscelaneous $ 5 000.00 Total Closing cost 5.3 % $ 26 625.00 US dls 3 .-Price of the deal $1 000 000.00 US Closing cost: Permit $ 1 000.00 Bank fees $ 1 100.00 Property taxes $ 20 000.00 Public registry $ 2 000.00 Notary Fee $ 17 250.00 Miscellaneous $ 10 000.00 Total Closing cost 5.1 % $ 51 350.00 US dls Phone: 52 (314) 333-0129 Fax: 52 (314) 334-0911 conrado@bay.net.mx 25 years of Experience in Manzanillo.