Homeowners     14 Jun 2023

Who Pays Closing Costs on Properties in Puerto Vallarta?

When buying or selling property in Puerto Vallarta, it's essential to understand the financial obligations involved. Closing costs are a significant aspect of these transactions. In this post, Naya Homes, a trusted property management company in Puerto Vallarta, will delve into the details of who typically pays the closing costs and provide valuable insights for property owners and investors.

Understanding Closing Costs in Puerto Vallarta


Closing costs encompass various fees and expenses associated with finalizing a real estate transaction. These costs cover services like title searches, property surveys, legal documentation, inspections, and administrative expenses involved in transferring ownership. It's crucial to comprehend the intricacies of closing costs in Puerto Vallarta to make informed decisions during property transactions.

Who Typically Pays Closing Costs in Puerto Vallarta?

Shangri-La Puerto Vallarta
Shangri-La Puerto Vallarta


In Puerto Vallarta, the responsibility for paying closing costs is typically negotiated between the buyer and seller. However, it is customary for the buyer to cover the majority of these expenses. Buyers are usually expected to pay for services such as notary fees, title search and registration fees, property transfer taxes, and bank fees associated with securing a mortgage.

Notary Fees: In Mexico, it is common to involve a notary public in real estate transactions. Notary fees can range from 0.5% to 1.5% of the property's value and are typically paid by the buyer.

Title Search and Registration Fees: These fees cover the costs of verifying the property's legal status and ensuring a smooth transfer of ownership. The buyer is responsible for these expenses, which can range from 1% to 2% of the property's value.

Property Transfer Taxes: In Puerto Vallarta, property transfer taxes are generally paid by the buyer. The tax rate is determined by the municipality and can vary but is typically around 2% to 4% of the property's value.

Bank Fees: If the buyer requires financing, additional fees such as appraisal fees, loan origination fees, and mortgage insurance premiums may apply. These fees are typically paid by the buyer.

Factors Influencing Closing Costs

factoring closing costs


Several factors can influence the closing costs in Puerto Vallarta. It's important to consider these factors to estimate the expenses accurately:

Property Value: The purchase price of the property directly affects the closing costs. Higher-priced properties usually entail higher closing costs. It's crucial to factor in this variable when budgeting for closing costs.

Financing: If the buyer requires a mortgage, additional fees may apply. These can include appraisal fees, loan origination fees, and mortgage insurance premiums. The buyer should consider these costs in addition to the purchase price and negotiate with the lender to minimize them.

Property Type: Different types of properties, such as condos or single-family homes, may have varying closing costs. For example, condominiums often have additional fees related to homeowners' association (HOA) dues, assessments, or transfer fees.

Legal Representation: While not mandatory, hiring a legal representative, such as a notary public or an attorney, can incur additional costs. Legal assistance ensures compliance with legal requirements and provides peace of mind throughout the transaction.

Taxes: Property transfer taxes, capital gains taxes, and other taxes may apply, depending on the specifics of the transaction. It's advisable to consult a tax advisor to understand the tax implications and potential exemptions.

Frequently Asked Questions


Are closing costs negotiable in Puerto Vallarta?
Yes, closing costs in Puerto Vallarta are negotiable between the buyer and seller. It's important to discuss these expenses during the negotiation phase of the transaction.

Can the buyer request the seller to cover some or all of the closing costs?
Although it is customary for the buyer to cover the majority of closing costs, it is possible to negotiate with the seller for a contribution towards these expenses. However, this practice is not common in Puerto Vallarta.

What fees are typically included in closing costs?
Closing costs may include notary fees, title search and registration fees, property transfer taxes, bank fees, appraisal fees, and legal representation fees, among others.

Are there any exemptions or discounts on closing costs in Puerto Vallarta?
Certain exemptions or discounts on closing costs may be available for first-time homebuyers or under specific circumstances. It's advisable to consult a real estate professional or legal advisor for more information.

How can I estimate my closing costs in Puerto Vallarta?
To estimate your closing costs, it's best to consult with a reputable real estate agent or legal advisor who can provide accurate estimates based on the specific property and transaction details.


Understanding who pays closing costs in Puerto Vallarta is crucial for property owners and investors. While the buyer typically covers the majority of these expenses, negotiations between the buyer and seller can occur. By considering the factors influencing closing costs, both parties can navigate the real estate market in Puerto Vallarta more effectively. For expert guidance and support in property management, Naya Homes is your trusted partner in Puerto Vallarta.

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