How much are Buyer’s Fee’s in Mexico

One of the biggest mistake I see from newer agents is that they don’t address Buyer’s Fee’s during their sales pitch. Buyer’s Fee’s are higher in Mexico, especially in the restricted areas such as the Baja Peninsula.

Buyer’s fee’s or closing cost can range from 3% to 10% of the purchase price for foreigners in Los Cabos.

  • Here is a list of Buyer’s Fee’s:
Fee Description Assessed by/Paid to Explanation of Cost/Purpose

ISABI – Acquisition Tax


Los Cabos Municipality


2% of the Property Purchase


Tax Appraisal Permit Fee


Los Cabos Municipality


This fee is assessed on the purchase price and/or tax appraisal and records the tax Appraiser’s findings with municipal tax office.


Public Registry Fee


Los Cabos Municipality


This is the recordation fee for the Deed of Trust in the Public Registry and is based on your purchase price.


Certificate of No Tax Debt – Property tax debt – No Water Debt


Los Cabos Municipality

OOMSAPAS (Water Service)


The certificates assure that the Seller has no debt recorded on the property. And that no liens have been filed for any reason against the property. This is an estimated flat fee as the cost as fluctuates based on the Peso value. The certificate of no liens is pulled twice in the closing process.


Notary Fee


The Notary


For the legal service associated with the transfer of the title. Including Trust Deed elaboration, trustee bank approval and communication, coordination of all municipal and federal permits, etc. The fee is based on the Purchase price of the property and has a cap limit for properties valued at more then $2mm USD.


Foreign Affair Permit and Registration (FAM or SRE)


Foreign Affairs Ministry ℅ of the Trustee Bank


This requisite permittee is actually two costs – the permit fee, as well as the registration of the foreign Purchaser(s) acquisition in Mexico, and authorization of purchase. This is a fixed fee


Trustee Bank Initiation Fee


Trustee Bank


This fee is assessed for the review and acceptance of the Purchaser’s Trust Deed. This is a fixed fee, generally the same cost as the annual trust maintenance fee (below)


Trust Bank Annual Fee


Trustee Bank


This fee is assessed for the ongoing service of acting as trustee of the Purchaser’s Trust and the associated filing requirements. This is a fixed fee, specified in the Trust Deed at execution and while the fee varies by bank it is generally between $333 – $666 USD annually.


Certified Translation Fee


3rd Party Translator


All documents associated with the Purchaser’s Acquisition but duly translated by a certified translator for acceptance by the Trustee Bank, Notary and Foreign Affairs Ministry. This includes identification, proof of address, corporate or entity documents, etc. Cost is on a per page basis. The cost of the certified translation of the Trust Deed is included, however, in the Transaction fee.


Transaction Fee


Closing Department


To offset the cost of courier services, foreign notary services for document authentication, etc. This is a flat fee.


Escrow Fee


Escrow Agent


The cost of the escrow and supervision. This is a fixed fee.


Optional – Title Insurance Fee


Title Insurance Company


Depending on the Company.

* This table of fee’s was provided by Lic. Javier Mazoy of Lex Advisors.

Closings normally take between 60 and 90 days. This is from the time all necessary documents have been provided by both parties. If you have to deal with HSBC or Scotiabank closing can take up to 180 days.

Part of the Buyer’s Fee’s or closing costs have to be paid up front. Normally I can be between $3,000 – $5,000 USD.  Some company will ask for as much as 50% to the total Buyer’s Fee’s in advance. This can be wired together with your increased Earnest Money into the Escrow Account.

Please feel free to contact me with any questions or doubts you might have. I’ll be more then happy to assist you selling your property.

Martin Posch

(624) 147-5857 Mobile 

From the US please dial: +521 (624) 147-5857


Posted on September 21, 2017 at 5:01 pm
Martin Posch | Category: Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Closing Costs in Mexico, Club Campestre San Jose del Cabo, Condos in Cabo, Contemporary Homes, Houses in Cabo, Los Cabos Real Estate, Market Report, Martin Posch, Mexico Real Eatate, Seller's Fee in Mexico, Uncategorized, Windermere Los Cabos | Tagged , , , , , , , , , , ,

Los Cabos Real Estate – Change to the Fideicomiso!

In a historic move, the lower house of the Mexican Congress voted on April 23 to loosen restrictions on foreigners buying property in coastal and boarder area. 

It passed the lower house with a vote of 356-119 and will now move to the senate. This means that a change to the 1917 Constitution has to be made. If it passes the senate it still has to be ratified to the majority of the Mexican States. Currently, Article 27 of the constitution prohibits foreigners from owning properties within 31 miles from the coast and 62 miles from the international boarders. That forces foreigner to use the fideicomio, which was established in 1973. Foreigners own the beneficiary right to a property, which gives them the same right of ownership given to a Mexican National.  

The senate is currently in session until the end of May. The attorney I talked to explained me that he doesn't believe that they will vote on during this session. He thinks that it will be discussed and voted on in September. He believes that it will pass very easily. All constitutional changes will have to be approved by the majority of the States here in Mexico. I don't think that this will be a hard hurdle to pass as all States on the ocean and boarder will be in favor of it. And the States that are not effected by this constitutional change won't care much about it anyway.

Once it has passed the senate and it has been ratified by the majority of the States, then they will have to modify two or three different laws in order to have this constitutional change going into effect. He was not able to give me a time frame. But he believes that it sill be fairly quick.

How would we be affected here in Los Cabos? The process of getting the permit from the Ministry of Foreign Affairs and the appoval of the bank is very time consuming. The cost of such a permit is approximatley $1,700 US Dollars. That includes the fee for registering the property in the Registry of Foreign Investment. The bank charge you an acceptance fee plus the first year in advance. That should be around $800 – $1,000 US Dollars. You will be able to save these two fees if you acquire fee simple. 

The Fideicomiso is a very versatile figure and in my opinion sufisticated buyers will keep on usign it in the future. It is a protection for your assets that even Mexicans are using. Another advantage is that you don't need a will to pass your property on to your heirs. Without a fideicomiso you will need a will either in Mexico or your place of origen. The process of transfering your property to your heirs is much more complicated without a fideicomiso.

It might boost the investment in real estate without a fideicomiso in Mexico, but I don't think it is disappear in the near future.  

Posted on May 13, 2013 at 11:38 am
Martin Posch | Category: Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Los Cabos Real Estate, Mexico Real Eatate, Uncategorized, Windermere Los Cabos | Tagged , , , , ,

Los Cabos Real Estate Statistics


It has been another interesting year here in Los Cabos. I hear very mixed signals from my friends. Some had a great year and some had the worst year ever. There is no doubt that it has been challenging for all of us. 

Let's look at some numbers throughout the first 9 months of this year and how it compares to the same time a year ago: 

Although we have seen more numbers of sales, the total sales volume is Dollars is still down. We sold and closed 383 transactions this year, which represents an increase of 16.1%. If we look at the total sales volume it is down to $146,527,374 Dollars or a 16.91%. In 2011, 42 properties closed above $1,000,000 US Dollars. This year, throughout the first nine months only 32 million Dollar properties were sold and closed. This is a decrease of 23.8%. Median sales price is down 15.62% to $216,000 US Dollars in 2012 and the average listing price decreased a 7.66% to $746,570 US Dollar. The average sales price is down to $382,578 US Dollar or a 28.41%

As you can see prices are still under pressure and I believe that this will continue in 2013. There is just too much inventory in the market and that will not allow prices to recover. I think that in 2014 we will prices stabilizing. 

Major investments are coming back to Los Cabos. There will be a second golf course built in Diamante (Tiger Woods Design), A Jack Nicklaus Course is being built as we speak at Pueblo Bonito Sunset. A new commercial plaza in front of the Country Club has started this month. Chileno Bay and its neighbor the Montage have been reactivated. A 196-room Park Hyatt Los Cabos will be located within a master planned golf resort community (Cabo del Sol or Puerto Los Cabos?) is expected to open in 2015. A Lowe store will be starting construction by the end of this year or early in 2013 in Cabo San Lucas. 

As you can see there are 100's of million Dollars being invested right now here in Cabo. That will give us all a more optimistic outlook for the near future. 

Martin Posch is co-owner and Managing Broker of Windermere Los Cabos and has over 11 years experience in the real estate market in Los Cabos. Martin Posch has served on the local MLS boards for numerous years. Please contact Martin Posch at: or on his cellular phone +521 (624) 147-5857, 




Posted on October 24, 2012 at 5:24 pm
Martin Posch | Category: Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Los Cabos Real Estate, Mexico Real Eatate, Uncategorized, Windermere Los Cabos | Tagged , , , , ,