# Bank trust fees



## banat4 (Sep 16, 2015)

We are looking to buy a property and have to go through the whole closing cost stuff including the bank trust fees. I read somewhere online that you have to pay an annual price of almost $1000 US for this bank trust. Is this true? Any information would help.

Thanks


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## TundraGreen (Jul 15, 2010)

banat4 said:


> We are looking to buy a property and have to go through the whole closing cost stuff including the bank trust fees. I read somewhere online that you have to pay an annual price of almost $1000 US for this bank trust. Is this true? Any information would help.
> 
> Thanks


You probably realize this, but for other readers who may not: The bank trust is only required of foreigners acquiring property within 50 km of a coast or 100 km of a border. In the rest of Mexico, foreigners can buy property outright and only pay a one-time fee of about $5000 mxn (about $300 usd).


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## chicois8 (Aug 8, 2009)

My bank (Banorte) charges $557.00 USD a year for doing nothing...CAD= $730.00
My house taxes are $28.00USD a year.........


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## banat4 (Sep 16, 2015)

chicois8 said:


> My bank (Banorte) charges $557.00 USD a year for doing nothing...CAD= $730.00
> My house taxes are $28.00USD a year.........


That's crazy. We're looking at Playa Del Carmen. That fee is nuts.


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## banat4 (Sep 16, 2015)

TundraGreen said:


> You probably realize this, but for other readers who may not: The bank trust is only required of foreigners acquiring property within 50 km of a coast or 100 km of a border. In the rest of Mexico, foreigners can buy property outright and only pay a one-time fee of about $5000 mxn (about $300 usd).


It's in Playa Del Carmen...


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## eastwind (Jun 18, 2016)

*shrugs*

Don't miss that decimal point in chicois8's point about his property taxes. Twenty-eight bucks a year property taxes. So I think what he's suggesting is that you simply flip the costs mentally: pretend you're paying $557 in property taxes and $28 for the trust fee. That sounds like a good deal to me....

In the end you pays to the bank and you pays to the gubmint and neither does nutin, so it don't matter none.


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## AlanMexicali (Jun 1, 2011)

banat4 said:


> That's crazy. We're looking at Playa Del Carmen. That fee is nuts.


It depends on the price of the house or condo. A $120,000 USD house or condo costs about $7,000 USD up front to set up the bank trust which most of this amount goes to the federal govenment and about $550 USD per month to the bank for their administration costs, fees etc.. A $240,000 USD house would cost about $12,000 USD to set up and about $800 USD per month to the bank. Some large land developers selling new houses or condos have special deals where the cost to set it up might be less.


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## chicois8 (Aug 8, 2009)

AlanMexicali said:


> It depends on the price of the house or condo. A $120,000 USD house or condo costs about $7,000 USD up front to set up the bank trust which most of this amount goes to the federal govenment and about $550 USD per month to the bank for their administration costs, fees etc.. A $240,000 USD house would cost about $12,000 USD to set up and about $800 USD per month to the bank. Some large land developers selling new houses or condos have special deals where the cost to set it up might be less.



$550 & $800 USD per *MONTH* wow and I'm mad at $557 a year.........


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## AlanMexicali (Jun 1, 2011)

chicois8 said:


> $550 & $800 USD per *MONTH* wow and I'm mad at $557 a year.........


At todays exchange rate a $240,000 USD house or condo is $4,400,000 pesos at about $800 USD per month bank trust fee. Most places in Mexico that would buy a very large house or condo if not on the beach or in a very exclusive colonia.


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## chicois8 (Aug 8, 2009)

The fedicomiso is a one time charge made at closing, the bank administration fees are once a year and I pay $557 USD per year....Are you saying a 120,000 USD home cost $ 550 USD a month or $6600 a year just for the admin. fees?

I do not understand why you mix USD and Pesos in your example........


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## AlanMexicali (Jun 1, 2011)

chicois8 said:


> The fedicomiso is a one time charge made at closing, the bank administration fees are once a year and I pay $557 USD per year....Are you saying a 120,000 USD home cost $ 550 USD a month or $6600 a year just for the admin. fees?
> 
> I do not understand why you mix USD and Pesos in your example........


Per year, not per month charge, my mistake.


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## TundraGreen (Jul 15, 2010)

AlanMexicali said:


> Per year, not per month charge, my mistake.


Now it makes a lot more sense.


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## chicois8 (Aug 8, 2009)

AlanMexicali said:


> Per year, not per month charge, my mistake.


Alan, please think about drinking Tequila only on the weekends, LOL...

Before anyone deletes the above message or writes an angry reply I am just kidding....


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