Planning Ahead – Permits, Taxes & Legal Tips for Sellers in Todos Santos

Planning Ahead: Permits, Taxes & Legal Tips for Sellers in Todos Santos

Selling property in Todos Santos is exciting—but it requires preparation. From permits and taxes to closing costs and who’s involved, planning ahead keeps your sale smooth, fast, and secure. Here’s what every seller (and buyer) should know.

1) Closing Costs: Who Pays What?

While every deal is negotiated, in general:

• Seller typically covers: Capital Gains Tax, any outstanding utilities/HOA, and agreed seller-side fees.

• Buyer typically covers: Acquisition tax, notary/registration fees, bank trust (fideicomiso) fees (setup or transfer), and most professional services.

• If there’s a mortgage: Expect lender fees, appraisal (avalúo), underwriting, and additional trust approvals.

Clarity upfront avoids last-minute surprises.

2) Who’s Involved in a Secure Closing

A successful sale is a team effort. Common participants include:

• Notario Público – Government-appointed official who validates the transaction and ensures legality.

• Fiduciary Bank (Fideicomiso) – Issues and administers the bank trust for foreign buyers.

  • Handles new trust creation, assignment/transfer of an existing trust, or extinguishing a trust when no longer needed (e.g., Mexican buyer or title change).

• Escrow Company – Holds funds securely until closing conditions are met.

• Surveyor / Topographer – Confirms boundaries and land characteristics.

• Appraiser (Avalúo) – Often required by lenders and useful for pricing/tax planning.

• Mortgage Lender – Coordinates credit approval, appraisal, trust approvals with the bank, and funding logistics.

• Attorneys / Closing Coordinators – Manage documents, due diligence, and timeline.

• Tax & Municipal Authorities – Verify payments and registrations (e.g., predial).

3) Permits & Legal Documentation

Have your paperwork ready:

• Building permits + receipts for improvements/remodels.

• Property tax receipts (predial) and proof of utilities paid.

• HOA compliance letters (if applicable).
  Well-organized files shorten negotiations and inspire buyer confidence.

4) Why Receipts Matter (Big Time)

Receipts for construction/remodel expenses can reduce Capital Gains Tax at closing. No receipts = improvements may not be deductible. Keep everything.

5) How This Helps Buyers Too

Prepared sellers = faster, safer closings. Buyers benefit from clear permits, trust transfers, and lender coordination—everyone wins.

✅ Bottom Line

In Todos Santos, the best sales are built on planning: permits in order, clear taxes, a defined closing cost split, and the right professionals—including the fiduciary bank and (if applicable) a mortgage lender—aligned early.

📩 Thinking about selling (or buying) in Todos Santos? RARE can coordinate the entire process—from trust transfers to lender approvals—so you can move forward with confidence.