Legal Thoughts On Buying In Cabo

Legal Thoughts On Buying A Home In Cabo San Lucas

Mexico has a lot to offer people looking to buy or invest in real estate. Cabo San Lucas is among the best places to buy property in Mexico. The beautiful sceneries and the unique Mexican flavor are an excellent match. Even better, San Cabos offers a wide variety of properties and styles. It is easy to find a dream home or an investment that will earn you handsomely in the future.

If you want to buy a home in San Lucas, you need a deep understanding of the rules and regulations on the property and home ownership. The processes may seem tedious and longer than normal, but the prize at the end of it all is well worth it. You can buy or sell a home at will.

Buying and Selling a Property

Unlike in the past, it has become relatively easy to buy a home in Mexico. The processes are more streamlined than ever before. 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. It is a renewable Mexican property trust that 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 is 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 out of the restricted area.


Getting a mortgage in San Cabos and the rest of Mexico is not the norm. However, this does not mean that you cannot get financing, far from it. Mexican financing is available, but the rates are quite high, and the process is long and involving.

If you choose to go the Mexican financing route, you need to look for properties where there are such funding options. Fortunately, such properties are in abundance. Most new developments offer some form of financing for the locals and the expats. Just have the required down payment with you. The process will be easy after that.

Whether you are 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 to ensure that the agreed amount is transferred to the seller once the property signing is done.

Property Taxes

After buying a property, you will be responsible for property taxes. The amount you pay is the same the seller used to pay. You can update the value of your property annually with the municipal authority if you make any additions to the asset 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.

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

Getting a Real Estate Agent

If you are not conversant with Cabo, San Lucas, and the process involved in owning a property, you need to get a good local Realtor in Cabo. A competent Realtor will not only help you identify prime properties but also help a great deal with the property transfer process. The Realtor will also recommend good financing options that are available to investors. If there is none, they will also let you know.

Owning property is San Cabos does not have to be complicated. With the right linkages, you will get numerous prime properties. You can select the ones that match your requirements and meet your budget.

Although it may take longer to get all the transfer processes completed. Property ownership in the Cabo area can be made easy by following the right processes… and above all, getting a competent property agent. Have an open mind when you engage in this business. It takes time and commitment to finding a worthwhile investment.

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