Acquiring a property, whether it is a house or an apartment, is an extremely important step for most people in the world. It is important to know that during the acquisition process there are essential legal steps to prove the legality of the purchase. In this scenario,the title deed in Mexico implies not only the formalization of the transaction, but also the fulfillment of a series of requirements and the payment of various costs and taxes. Find out below how much it costs to deed a property in Mexico, the requirements involved, the difference between deeding and registration in the public registry of property.
How much does it cost to deed a house, land or apartment in Mexico?
The cost of deeding a property in Mexico can vary considerably depending on the location, land use and value of the property in question. In general terms, the cost can range from 4% to 7% of the total value of the property. In addition, these costs include notary fees, taxes, duties and the appraisal:
- Taxes: The Impuesto Sobre Adquisición de Inmuebles (ISAI) is the most relevant tax to pay when deeding a property, with a cost of up to 6.5% of the value of the property. Other taxes such as Income Tax (ISR), Value Added Tax (VAT) and Transfer of Ownership Tax (ITD) may apply in certain circumstances.
- Fees: Fees are the expenses associated with the process of registering the deed in the Public Registry of Property, varying according to the federal entity and the type of property.
- Appraisal: An appraisal is a document necessary to calculate the cost of ISAI and other taxes. It determines the commercial value of the property.
It is important to keep in mind that deed costs vary depending on each state of the Mexican Republic, for example:
- Mexico City: In Mexico City, the cost of deeding a property is usually between 5% and 7% of the value of the property.
- State of Mexico: In the State of Mexico, the cost of deeding a property is usually between 4% and 6% of the value of the property.
- Guadalajara: In Guadalajara, the cost of deeding a property is usually between 4.5% and 6.5% of the value of the property.
How much does a notary charge for deeding a property?
The notary is the professional in charge of authorizing the deed of sale and carrying out the registration process in the Public Registry of Property. Fees vary according to the state and the value of the property, usually ranging between 1% and 2% of the value of the property.
What are the requirements to deed a property in Mexico?
The process of deeding a property in Mexico is simple as long as the property has been acquired with full legality in the process. It involves a series of requirements that buyers and sellers must present to the notary. These requirements can vary, but in general terms include:
- Valid official identification.
- Proof of address.
- Information on the marital status of the parties involved.
- Proof of Freedom of Lien.
- Appraisal of the property.
- Possibly, previous deeds if applicable.
- Payment of the Real Estate Acquisition Tax (ISAI).
- The payment of fees associated with the procedure.
Is deeding a property the same as registering it in the public land registry?
It is common for there to be confusion on this issue. The answer is no, the registration of a property in the public registry of property is not equivalent to a deed. The deed is the process that formalizes a legal act, such as purchase and sale, donation, inheritance, usufruct or easement. Registration in the public land registry is the subsequent step that officially registers the property in the name of the new owner.
The deed is essential to guarantee the legality of the transaction, and is the step prior to the registration in the Public Registry of Property. registration in the Public Registry of PropertyIt is a process that grants legal validity to the property, allowing third parties to know the legal status of the property.
Acquiring a property in Mexico involves more than just paying for the property. Deeding a property requires an understanding of the costs involved, the necessary requirements and the crucial difference between deeding and registration in the public registry of property. This process, although it can be complex, guarantees the legality and ownership of the property, providing legal certainty to those who acquire it.
We recommend you to have a notary you trust, request quotes from several notaries, gather all the requirements in advance and read the deed carefully before signing. By being prepared and understanding the details of the process, buyers can approach the deed to a property in Mexico with confidence and security.
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