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SanchPanch

Feb 14, 2003, 5:56 PM

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Notarios Fee

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Hi there everyone: Can someone tell me what is an adequate fee for a notary public doing escrituras for a $700,000 pesos home? I have someone who wants to charge me $14000 pesos and that would include his fees, escrituras and the 2% tax. Is this adequate or is he seeing greenbacks coming his way?? I would appreciate the input and also any recomendations of any honest notary public that someone has had experience with. Thanks.

Jim in Cancun / Moderator

Feb 15, 2003, 3:56 AM

Post #2 of 11 (1369 views)

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Re: [SanchPanch] Notarios Fee

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Sounds reasonable to me. Two years ago I did a piece of land and it was over $7,000 just for his fees and when I did a house about 8 years ago it was about that much.

tonytiger

Feb 18, 2003, 7:09 PM

Post #3 of 11 (1311 views)

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Re: [Jim in Cancun] Notarios Fee

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What is this 2 per cent tax? Coffee money for the Notarios? Shouldn't the notario fees be according to the price of the property? Or it varies from state to state? I paid $5000 for a 250k lot? Just wondering??

Thanks

Jim in Cancun / Moderator

Feb 19, 2003, 4:32 AM

Post #4 of 11 (1298 views)

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Re: [tonytiger] Notarios Fee

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I don´t know what the 2% tax is for but I think that Notarios can set their own fees...and "adjust" them. There are certain "derechos" that they charge which actually are set by and go to the government agency corresponding to what is being done.

Harry

Feb 20, 2003, 12:31 PM

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Re: [SanchPanch] Notarios Fee

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About 2 years ago, this seemed to be about the going rate in Merida, at least for Gringos.

Carlos

Feb 20, 2003, 3:09 PM

Post #6 of 11 (1261 views)

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Re: [Harry] Notarios Fee

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In Reply To

About 2 years ago, this seemed to be about the going rate in Merida, at least for Gringos.

Perhaps is because of the "extra work" regarding foreigners issues? ;<
Anyway notarios fees for their services are also known, in spanish, as honorarios.

(This post was edited by Carlos on Feb 20, 2003, 6:05 PM)

Harry

Feb 20, 2003, 5:50 PM

Post #7 of 11 (1250 views)

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Re: [Carlos] Notarios Fee

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Honorarium, where I come from, is an institution's apology for an embarassingly small payment for services.

tonytiger

Feb 21, 2003, 11:33 PM

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Re: [Harry] Notarios Fee

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Just like any othe industry or service, they will get asmuch as they can from you. am buying a piece of land and the seller is letting me pay taxes on the existing balance, instead of the sales price, which is legal. but notarys prefer the higher price ans the added fees. FIVE months ago in Morelia I had to "turn in" or report a Notario that had "honarary fees of 7000 pesos that were just plane tickets for him totravel to San Franicisco, upon confesion of his father. SHOP AROUND...14000 is too darn much...the 2% is not GOVERNMENT MANDATED...wake up...you be surprised if you got three estimates...

alex .

Feb 26, 2003, 7:32 AM

Post #9 of 11 (1235 views)

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Re: [SanchPanch] Notarios Fee are negotiable

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The work to do escrituras on a million dollar property is the same as that for a thousand dollar property. The level of effort has nothing to do with the value, it is simply industry custom to charge a percentage of the Avaluo. Much like the real estate fees in the US likewise have an unjustified link to value. The transfer taxes ARE based on value, I don't know of a way to negotiate that other than to suggest to the Perrito who does the avaluo that maybe the property isn't really worth that much. This information doesn't help you much, though, as the Notarios, Inmobiliarios, and Abogados are all in cahoots. Be prepared to do your own title searching at the Palacio: make sure the property has no leins (hipotecada, gravamenes). Remember that there is no escrow as you may be accustomed to in the US. Parts of the transaction will be based on trust, and that trust can/may be violated without recourse. You are in for a real live Mexico learning experience !
Been there, done that, bought the Tshirt,
Alex

(This post was edited by alex . on Feb 26, 2003, 7:41 AM)

David(MTY)

Mar 2, 2003, 12:20 AM

Post #10 of 11 (1212 views)

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Re: [Jim in Cancun] Notarios Fee

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"700,000 pesos"..."wants to charge me $14000 pesos and that would include his fees, escrituras and the 2% tax"

Ha ha ha.

Surely the notary is smoking dope or wants something else out of the deal. For a MXN 700,000 house, the 2% ISAI alone is exactly the MXN 14,000 you mention. So get back to him. Recording escrituras are a couple hundred pesos, I wouldn't worry about their price. For your house a reasonable amount is 14,000 tax, 200 recording, up to 1,500 other municipal fees, 4,000 for the foreigner permit and 6,000 - 9,000 plus 15% I.V.A notary fees (what the notary keeps, including any document or other secretarial fee not to the local officials), for fee simple ownership. The variation in the notary fee will depend on how much he wants your business, how greedy he is, and how nitpicky you are. Get a written quote before selecting him for the entire deal. If he balks at that, use your judgement and find another notary. Based on 6,500 notary fee, the total comes out around MXN 27,000 if I added right.

Edit: I'm not sure of the 15% I.V.A., it could be less in special tax zones like Cancun. But that isn't more than 500 pesos or so off.

(This post was edited by David(MTY) on Mar 2, 2003, 12:58 AM)

David(MTY)

Mar 2, 2003, 12:39 AM

Post #11 of 11 (1234 views)

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Re: [alex .] Notarios Fee are negotiable

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I like this post. Everything is very true. Ironically true is,

"The transfer taxes ARE based on value, I don't know of a way to negotiate that other than to suggest to the Perrito who does the avaluo that maybe the property isn't really worth that much."

Yes, a "perrito" :-) is in order, but make sure this puppy's in your pocket as alex points out. (ie, probably not worth wasting your time). I don't have the law books handy, but I seem to recall the basis for 2% ISAI is the purchase price of the house, or the value, whichever is higher. I also seem to recall there is an ISAI exemption for low price homes but your price is definitely more than 25-30? annual minimum wages at $700,000. It would have to be below the 360,000 range to qualify. "Abq", another Mexconnect user tells me that in SMA everyone is cheating on taxes and lying about purchase price. Maybe that is why some people get the idea that the 2% is negotiable. Don't get involved, that's the only advice of mine I hope you take to heart.