Legal Thoughts On Buying In Cabo

Mexico has a lot to offer when it comes to investing in real estate. Additionally, Cabo San Lucas is among the best places to buy property in Mexico, and cities to invest in. The beautiful sceneries and the unique Mexican flavor are an excellent match. 

Even better, San Cabos offers varied types of properties and styles. Whether a single family home or condo, it’s easy to find property that’ll earn you a return down the road.

If you’re looking to buy a home in Cabo, you’ll need an understanding of the regulations of property ownership. The processes may seem tedious, but the prize at the end of it all is well worth it. With a proper understanding, you can buy or sell a home at will.

Two people shaking hands after completing a real estate transaction

Buying and Selling a Property

Unlike in the past, it’s become relatively easy to buy a home in Mexico. The processes are more streamlined, and it takes a shorter time to complete the buying or selling process than before. 

Buyers require due diligence when buying a property in Cabo just like in other parts of the world. A proper title search is necessary, and the rules relating to restricted and non-restricted areas have to be followed.

Property transactions here involve many parties. These include the buyer, seller, escrow agent, closing agent, and the notary public. Others that may be required include the bank and the land offices.

Home Ownership

The first thing to note is that property ownership in Cabo is through Fideicomiso. This renewable Mexican property trust covers lands that are 100 kilometers from the border or 50 kilometers from the coast. Since most of Cabos is within the restricted zone, it’s impossible for foreigners to hold title to an estate legally.

A property owner becomes a beneficiary of the trust for 50 years. Once the 50 years are over, the property owner only needs to renew the trust permit to continue enjoying the property. You can, however, hold a title if you buy a property outside of the restricted area.


Getting a mortgage in Cabo San Lucas, or anywhere in Mexico, isn’t the norm. However, this doesn’t mean that you can’t get financing. Mexican financing is available, but the rates are quite high compared to the United States and other countries.

If you choose to go the Mexican financing route, you need to look for properties where there are funding options. Fortunately, such properties are in abundance. 

Most new developments offer some form of financing for locals and expats. You’ll just need to have the required down payment with. After that, the process becomes fairly simple.

Whether you’re paying in cash or getting Mexican financing, an independent escrow company comes in handy. This company will handle your finances and keep in touch with the closing agent. They’ll ensure that the agreed amount is transferred to the seller once the property signing is done.

Property Taxes

After buying a property, you’ll be responsible for property taxes. The amount you pay is the same the seller used to pay. 

You can update the property value annually with the municipal authority if you make any additions during the year. These updates will affect the tax you pay at the end of the year.


The process may take longer than expected. Exercising patience is wise. Allow some reasonable time for the process to be completed. Authorizing a power of attorney to a trusted person is possible, if necessary. 

This way, the deed transfer is signed even if you’re out of the country. A power of attorney is limited, so you’ll have nothing to worry about in future. Most of the other paperwork can also be handled electronically.

A small, slightly rusted sign that says Cabo San Lucas

Working With the Right Real Estate Agent

If you’re not well versed in the property owning process in Mexico, you’ll need a good local Cabo Realtor. A competent Realtor won’t only help you identify prime properties. They’ll also help you get a great deal with the property transfer process. 

A good Realtor can also recommend good financing options that are available to investors. If there is none, they will also let you know.

Owning property in San Cabos doesn’t have to be complicated! With the right connections, you’ll be able to find numerous prime properties. You can select the ones that match your requirements and meet your budget.

Yes, it may take longer to get all the transfer processes completed. But property ownership in the Cabo area can be made easy by following the right processes. And above all, by working with a competent real estate professional. 

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