Buying Real Estate in Los Cabos, Mexico

It's crucial to find a local real estate agent who is a skilled negotiator and cares about your interests.

The luxury real estate market in Los Cabos is thriving. Whether you’re looking for a vacation rental, a future retirement home, a commercial investment, or a second home for family vacations, you’ll find it in Los Cabos.

It’s exciting to buy real estate in one of the most beautiful and popular destinations in the world. And it could also be one of the best financial and emotional decisions you’ll ever make.

The first step: contact a local real estate market expert who knows the market and all the ins and outs of the buying process, and who will be dedicated to protecting your interests and assets. At Cabo Life Real Estate, we know the local real estate market inside out, having lived and worked in Los Cabos for years. We’re also skilled negotiators who can put that deep local knowledge to effective use.

What to Expect From Our Cabo Real Estate Agents

Once you decide to work with us, we will dedicate ourselves to finding the property that best fits your needs and your budget. If you are seeking a luxury home or commercial investment in Cabo, you’re in good hands; this is our specialty.

Our agents will:

  • Answer all of your questions about local market conditions, local communities, and the culture and attractions of Los Cabos.
  • Walk you through the process of buying a property in Cabo, which differs from that of buying a property in the United States.
  • Explain unfamiliar terms and the nuances of applicable tax laws and regulations.
  • Guide you through the available properties.
  • Handle the paperwork requirements.
  • Outline and recommend financing options.
  • Take you all the way through the closing process, even if you can’t be in Mexico for it. We know how to close deals.
  • Hand you the key.

We represent you with honesty, integrity, and dedication. Throughout the buying process and even after the deal has closed, we will work with you closely. As we always say, “Our clients become our friends, our friends become our clients, and our friends are treated like family.”

Once you decide to work with us, we will dedicate ourselves to finding the property that best fits your needs and your budget. If you are seeking a luxury home or commercial investment in Cabo, you’re in good hands; this is our specialty.

Our agents will:

  • Answer all of your questions about local market conditions, local communities, and the culture and attractions of Los Cabos.
  • Walk you through the process of buying a property in Cabo, which differs from that of buying a property in the United States.
  • Explain unfamiliar terms and the nuances of applicable tax laws and regulations.
  • Guide you through the available properties.
  • Handle the paperwork requirements.
  • Outline and recommend financing options.
  • Take you all the way through the closing process, even if you can’t be in Mexico for it. We know how to close deals.
  • Hand you the key.

We represent you with honesty, integrity, and dedication. Throughout the buying process and even after the deal has closed, we will work with you closely. As we always say, “Our clients become our friends, our friends become our clients, and our friends are treated like family.”

Steps in the Buying Process

Although buying a home in Mexico — or any foreign country — may seem overwhelming, the process is perfectly manageable if you know the relevant laws and regulations.

  1. Determine your needs and long-term objectives.

Are you buying a family vacation home? A vacation rental? A home that will serve as both? Will this be your family’s nest egg? Your future retirement home? Also think about whether you want a quiet neighborhood or to be in the thick of things or to have easy access to the beach. Owning a slice of paradise to call your own is a very attractive prospect. But make sure you can budget for it and can make the most of your investment.

  1. Talk to your realtor about how Mexico’s real estate market works.

Buying property in Mexico usually involves several parties, including the buyer and the seller (or their legal representatives if one of both of them cannot be in the country for the transaction), the real estate agent, the notary public, and the closing and escrow agents. The bank, land offices, public registry offices, and appraisers may also be involved.

In certain restricted areas of Mexico — including Los Cabos, since it’s located within 50 kilometers of a coast or within 100 kilometers of the border — foreigners may buy property only through the mechanism of a bank trust (fideicomiso). By this method, the buyer becomes the beneficiary of a renewable trust for 50 years, enjoys all the rights and privileges of a citizen, and may own, sell, and transfer properties. Securing a fideicomiso involves working with federal and state agencies. It can take up to 90 days.

  1. Secure lending.

Although getting a mortgage in Mexico is not as common as it is in the United States, financing is still possible for many properties, especially new developments. Whether you’re paying cash or getting financing from a Mexican bank, consider using an independent escrow company to handle your finances and the communication with the closing agent. You can also obtain financing from an international company, with a maximum loan value of 60 percent of the sale price of the property and with an interest rate starting at 7 percent. We can discuss your local and international options with you and make recommendations.

  1. Search available properties.

Browse our latest listings of luxury properties for sale in the Los Cabos region or speak with us directly about your preferences so that we can make specific recommendations. We know about current and impending construction projects as well as what’s available right now, so we can readily narrow your search to a few top candidates.

  1. Evaluate the top picks.

Examine your reasons for liking these properties. Talk to your real estate agent about the pros and the cons and how to make the most of your investment. Will you be making improvements to a particular property? Enjoying it as is?

  1. Make an offer.

Once you choose a property, it’s time to make an offer and to deploy your agent’s negotiating skills to bring the process to a satisfying close. You may receive a counteroffer, so be prepared to negotiate. Also be prepared to move on to another top choice if your offer is simply rejected. Now is also the time to arrange for a property inspection and to discuss taxes and insurance with your real estate agent to ensure that there are no structural or legal problems with the property.

Frequently Asked Questions About Buying a Home in Los Cabos

Answers about buying luxury real estate in Los Cabos as a foreigner.

Yes. You can own property in Los Cabos through a land trust called fideicomiso. The property you purchase will be placed in a trust with the purchaser, you, named as the beneficiary. This trust has a renewable term of 50 years. This is not a leasing arrangement; you will have full control of your property. You can sell it, will it to your family, and so on.

We partner with federal and state agencies, including a bank and a notary public, to secure the trust and close the deal. Unlike notary publics in the U.S., notary publics in Mexico are attorneys acting on behalf of the state government and federal government in relation to any transaction. It could take up to 90 days to obtain the trust for you. But you don’t have to be in the country throughout the process. We’ll oversee it for you and update you on each new step that is taken.

The purchase of the property takes place at the office of a notary public, at which time the foreign owner may assign his beneficial interest in the trust to the buyer. The buyer may also establish a new bank trust with respect to which he is the primary beneficiary. Closing costs typically include an acquisition tax, a fee for the city appraisal, fees for foreign permits, a bank-trust setup and administration fee, and notary fees.

A few factors make the closing process seamless if you work with us. First, you can purchase title insurance right in Cabo. Second, the attorney at Cabo Life Real Estate is American and has worked in both the United States and Mexico. Third, the company that Cabo Life uses for the closing process is American-owned and works all over Latin America.

Once you have the title, the property now belongs to you, and it’s time to pay. Until you obtain your trust, your money is held in an individually numbered escrow account through our third-party escrow service.

Yes. We highly recommend it. Property in Los Cabos is a very important investment, and it’s crucial to protect it, for the same reasons that you would buy insurance to protect your property in the United States, your car, or your health.

Relying on an experienced real estate agent who understands the local regulations governing foreign ownership of real estate in Mexico makes it as easy as possible to buy the right property for you in Los Cabos. Let us put our expertise to work for you.

Browse our latest listings of luxury properties for sale in the Los Cabos region, get more answers at our general FAQ, or contact us to discuss your real estate investment goals.