BUYING CABO REAL ESTATE GUIDE

Make Your Offer

Offers to purchase should be made in writing. In Los Cabos, those offers are made on an Oferta – an Offer to Purchase or Offer to Acquire. If you’re looking to make an offer that’s well below the asking price, it might be wise to have your agent contact the seller’s agent to test the waters and see if the offer is within the realm of possibility. No sense in spending the time to draft a written offer if the price you’re putting forward isn’t even in the seller’s ballpark. If it is, they’ll let you know.

Draft a Formal Written Offer

Now’s the time to have your attorney/agent commit your offer and its terms to paper. The form us usually referred to as a Convenio de Compra/Venta (provisional sale agreement). Be specific in the terms including time to accept, contingencies, earnest money deposit and cancellation. It would be wise to include an inspection clause as part of your contingencies. If the seller accepts and signs, then it’s time to provide the earnest money deposit but there’s a step to complete before doing so. Once the offer has been accepted and a 50% deposit is made for the closing cost, the process is 100% managed by the closing attorney and overseen by buyers and sellers realtors. Throughout the closing process, the buyers and sellers can work with the closing attorney via email. You are only required to be here for the final closing and signing. Alternatively, you can give your attorney a limited Power of Attorney allowing them to sign transaction related documents on your behalf.

Open a Property Trust Account

Since you’re reading about buying real estate in Los Cabos, you will be dealing with legal requirements specific to purchasing in the “Restricted Zone” – areas within 100km of a national border or within 50km of a coastline. This requires extra permission to purchase and extends the time from offer to closing. Once the account is open, the earnest money deposit is placed in that “escrow” account. That account can be either US or Mexican based - buyer’s choice.

Foreign Secretary’s Approval

A formality where you acquire permission to purchase real estate as a foreigner. You will be asked to sign the Calvo-Clause stating that you will not seek foreign assistance in any of your dealings to purchase the property in Mexico.

Title Check and Deed

At this point, your attorney/notary will check to ensure that the title to the property is clear and that a legal deed can be conferred. Perhaps the most important thing to verify is that the purchase you are making is not part of ejido land. If you are buying from a property developer they will also check to ensure that the developer has all required permits and that they are in order.

Prepare to Close

You will need to present to your attorney/notary your Passport, Birth and/or Marriage Certificates (if needed), and your visa which can be a standard tourist visa. You need not be a resident of Mexico with a temporary or permanent residency visa to purchase and own in Mexico, you merely need to prove you are in the Country legally. The seller will need to provide the original property deed, public utility bills (marked paid), tax payment receipts plus any other documents that detail land/property service fees plus their identifying documents (passport, etc). As part of the sale, Capital Gains Tax must be calculated and paid by the seller.

Finally, monies are transferred (usually by wire-transfer) and you will be charged applicable sales fees including taxes and notary. Those monies must be on hand at the time you sign and close at the notary. Common fees you'll see on your closing documents will include: Acquisition Tax (ISABI); Recordation Fee; Public Notary Fee; Fiduciary Acceptance and First Annual Fees; Appraisal Fees; and your Attorney/Closing Agent Fees.

Download/View Sample Closing Cost Statements

Once all closing documents are signed and monies paid, title is transferred. Congatulations! You’re a Mexican property owner!