From Offer to Keys

Buying real estate in Los Cabos is exciting, but if you’re purchasing in Mexico for the first time, the process can feel very different from what you may be used to in the U.S. or Canada.

The good news? The buying process in Cabo is actually very secure and straightforward when guided properly.

Here’s a step-by-step breakdown of what to expect when buying property in Los Cabos, from your initial offer all the way to receiving the keys.

Step 1: Property Search & Due Diligence

Before submitting an offer, your agent will help you:

• Understand the different areas of Los Cabos
• Compare communities, HOAs, and amenities
• Review market values and comparable sales
• Verify property ownership and legal status
• Identify potential rental income or investment opportunities

In Cabo, location matters tremendously. Palmilla, Pedregal, Querencia, Puerto Los Cabos, Cabo Corridor, and Todos Santos all offer completely different lifestyles and investment profiles.

This is also the stage where buyers typically:

• Tour properties in person or virtually
• Review HOA fees
• Learn about utilities and infrastructure
• Understand financing or cash requirements

Step 2: Submitting an Offer

Once you find the right property, your agent prepares an Offer to Purchase.

The offer will include:

• Purchase price
• Earnest money deposit
• Closing timeline
• Contingencies
• Included furniture or exclusions
• Terms and conditions

In Los Cabos, negotiations can include much more than price alone. Furniture packages, closing dates, exchange rate considerations, repairs, and even golf memberships may become part of the negotiation.

Once both parties sign the offer, the transaction officially begins.

Step 3: Opening Escrow

After the offer is accepted, escrow is opened with a neutral third-party escrow company.

The escrow company:

• Holds deposits securely
• Coordinates funds transfer
• Verifies contractual obligations
• Ensures conditions are met before funds are released

Unlike some markets, escrow in Cabo plays a very important role in protecting both buyer and seller throughout the transaction.

At this point, the buyer usually wires the earnest money deposit.

Step 4: Requesting Estimated Closing Costs

At this point, buyers typically request an estimated closing cost sheet from the closing attorney or escrow company.

While the final numbers are not confirmed until later in the process, this estimate helps buyers understand the approximate costs associated with the purchase early on.

Estimated closing costs may include:

• Acquisition tax
• Notary fees
• Registration fees
• Escrow fees
• Trust setup fees (fideicomiso)
• Legal fees

In Los Cabos, buyer closing costs generally range between 4% to 7% of the purchase price, depending on the structure of the transaction.

Reviewing estimated costs early helps avoid surprises and allows buyers to plan accordingly.

Step 5: Legal Review & Due Diligence Period

During this stage, the closing attorney and notary begin reviewing the property documentation.

This process may include:

• Title review
• Verification of liens or debts
• Property tax verification
• HOA status review
• Trust (fideicomiso) review if applicable
• Permits and construction verification

Foreign buyers purchasing within Mexico’s restricted zone, which includes Los Cabos, typically acquire property through a bank trust called a fideicomiso.

The fideicomiso allows non-Mexican buyers to fully control, sell, lease, remodel, inherit, or occupy the property while remaining fully protected under Mexican law.

This step is critical and should never be rushed.

Step 6: Bank Trust Setup (Fideicomiso)

If the buyer is a foreign national and does not already have an existing trust to assume, a new fideicomiso is established with a Mexican bank.

The bank acts only as trustee. The buyer remains the full beneficiary and decision-maker.

During this phase, the buyer will typically provide:

• Passport
• Proof of address
• Personal information forms
• Beneficiary information

Your closing coordinator and legal team usually handle most of this process for you.

Step 7: Final Closing Statement Preparation

Before closing, buyers receive a final closing statement outlining:

• Purchase price balance
• Final closing costs
• Acquisition tax
• Notary fees
• Registration fees
• Escrow fees
• Trust setup fees if applicable

Your agent and closing team should walk you through every line item clearly before signing.

Step 8: Final Walkthrough

Before closing, buyers usually complete a final walkthrough of the property.

This is the moment to verify:

• Property condition
• Included furnishings
• Appliances
• Repairs if negotiated
• Inventory items
• Utilities and systems

For furnished properties in Cabo, this step is especially important.

Step 9: Signing Day, Recording & Delivery of Keys

Closing in Mexico is finalized before a Notario Público (Public Notary).

The notary is a government-appointed legal authority responsible for:

• Validating the legality of the transaction
• Reviewing documentation
• Collecting taxes
• Recording the deed with the government

Many buyers sign remotely through a Power of Attorney if they cannot be physically present in Los Cabos.

Once documents are signed and funds are confirmed, the transaction becomes official.

After signing:

• The notary records the transaction
• Escrow releases funds to the seller
• Ownership is officially transferred
• The buyer receives possession of the property

And finally, the keys are yours.

Welcome to Los Cabos.

Why Having the Right Cabo Real Estate Team Matters

Buying property in Mexico is not complicated, but it is different.

Having an experienced local team helps ensure:

• Proper due diligence
• Safe escrow handling
• Clear communication
• Trusted legal coordination
• Smooth closing timelines

Whether you’re buying a vacation home, investment property, retirement residence, or beachfront villa, understanding the process ahead of time makes the experience far more enjoyable and stress-free.

Thinking About Buying in Los Cabos?

Our team specializes in helping buyers navigate the Cabo real estate market with confidence.

Whether you’re just starting your search or ready to make an offer, we’re here to guide you every step of the way, from offer to keys.

Contact us today to start your Los Cabos property journey.