Making Annual Bank Trust Payments on Your Propety
Posted By Bjoern Koch, AREA Real Estate on January 1, 2015
When you first buy your beachfront property in Playa del Carmen, during the closing you will have your agent alongside to advise on how to set up your bank trust (Fideicomiso). However, once you get to your first and perhaps second annual payment you may need to be advised on how, when and how much to pay.
Riviera Maya Property Management Services is a sister-company of AREA Real Estate Advisors and offers extended services to our clients such as making annual bank trust payments on your behalf. If you prefer to make the payments on your own, here is a brief guideline to paying your annual bank trust maintenance fees.
While this information pertains to the initial set up, which will take place during the closing process of your property, here is a brief reminder of the costs involved for your budgeting reference. To set up a bank trust to hold your property you will need to pay:
A fee to Mexico’s Ministry of Exterior Relations
A fee to the bank, sometimes called a signature fee
A fee to notify Mexico’s office of Foreign investments
The total of this is usually between $2000 – $3000 USD, depending on the bank. See information from each bank below for further details.
After setting up a bank trust, you will only need to make the annual payment to maintain it. This annual fee is usually between $550 and $650 USD, depending on the bank, and the current exchange rate, since some banks charge in pesos rather than dollars.
When the annual payment is due
In all banks we have worked with the annual bank trust payment is due on the anniversary date of your closing every year. Most banks will NOT send a reminder – at least not before the due date.
Please note that if you do not pay on time you will need to pay a penalty for the days late. However, some banks have a grace period after the due date during which no interest is charged. See the details for each bank below. How to make your annual payment In order to make your payment you will need the Bank Trust folio number.
If you don’t have it, they need the complete name of the client in order to look up the file. If you are in Mexico when your payment is due you can pay in person at any bank branch you set up your bank trust with. If you’re not in Mexico, there are a number of options for you to ensure that your payment is made, including:
Bank Trust – Paying Options
International Wire Transfer – Your bank will provide you with the SWIFT code and account number to make your transfer from your home bank in the U.S. or Canada. You will have to e-mail a scanned copy of the transfer receipt to your bank.
Check by Mail – Mail an international check or money order by secure courier to your bank. The bank would give you the details for the payee, address, etc.
A Friend or Representative – You could give the information and payment to a friend or representative who would make the payment for you. The bank would advise you on what information you need to leave with this person.
Credit Card Charge (VISA/MASTER CARD) – You can authorize your bank ahead of time to charge the payment to your credit card on the specified date.
Automatic Bank Account Payment – If you have an account with the same bank in Mexico, most banks will give you the option of authorizing an automatic payment on the due date.
The last two options are convenient since the payment is taken automatically on the correct date. However, it is highly advisable to review your account (by online banking – make sure you set this up while you are still in Mexico) or your credit card to ensure that the payment was indeed made.
Some banks offer further options that can be convenient in certain situations. See below for details.
Information for Specific Banks
The following information was provided by each bank as of March 2012. While annual payments will vary as per bank, year and exchange rate and there is a possibility that some other details may change, it will serve as a basic guideline of how to manage the annual bank trust payments at your specific bank.
SCOTIABANK Setup fee (Total) 34,000 Pesos (approx. $2800 USD as of March, 2012; always charged in pesos) Annual Maintenance Fee 7200 Pesos (Approx. $585 USD as of March, 2012; always charged in pesos) Paying from out of Mexico As listed above Grace Period 2 months without interest after the due date.
BANCOMER Setup fee (Total) Approx. $1775 USD (14,900 Pesos [$1200 USD as of March, 2012] plus $575 USD) Annual Maintenance Fee $610.50 USD Paying from out of Mexico As listed above, plus a P.O. Box in California for checks to make sending checks faster and more secure
BANORTE Setup fee (Total) Approx. $1750 USD ($16,700.00 pesos [$1350 USD, as of March, 2012] plus $400 USD +Tax*) Annual Maintenance Fee $400 USD +Tax* – paid for 2 year periods Paying from out of Mexico As listed above Grace Period 1 month with no interest after the due date *The USD amounts do not include the VAT tax, which other price quotes do. BANCO
INTERACCIONES Setup fee (Total) Approx. $2030 USD (16,950 Pesos [$1375 USD as of March, 2012] plus $660 USD.) *The initial set-up fee includes the first annual fee. Annual Maintenance Fee $550 USD Paying from out of Mexico As listed above, plus the option of depositing into Citibank account in the US; Banco Interacciones would provide you with the account number and info for the deposit. Grace Period 1 month with no interest after the due date *The USD amounts do not include the VAT tax, which other price quotes do.
Once you set up your Bank Trust, it is responsibility of you as owner to keep track of your payments and due dates, as well as to keep your Bank Trust information at hand in case you need it.