How do you Buy Real Estate in Los Cabos, Mexico?

What is a Fideicomiso?  A “Fideicomiso” is a 50-year renewable and transferable Bank Trust that allows foreign citizens to purchase coastal property within designated regions of Mexico. It is an instrument commonly used for non-Mexican nationals, such as U.S. citizens and Canadians. When you take ownership, you can purchase the property as an entity (LLC), or as an individual in which you are the beneficiary of the bank trust.

How does it work? The Mexican Government issues a permit to a Mexican Bank of your choice, allowing the bank to act as the purchaser for the property. The bank holds legal title to the property and acts as the “Trustee” for the Trust and you are the” Beneficiary” of the Trust. The Beneficiary rights are similar to Estate Trusts in the United States. A trustee takes instructions only from the beneficiary of the trust (the foreign purchaser). The Beneficiary has the right to use, occupy and possess the property, including the right to build on it or otherwise improve it. The Beneficiary may also sell the rights and instruct the trustee to transfer title to a qualified owner.

 How do I Purchase property in Los Cabos?  There are several creative options to take advantage of the Market when you find that perfect vacation home. Cash remains the most effective way to negotiate the best price possible and the majority of properties in Los Cabos are purchased with a Cash Investment.  Creative Seller Financing through a guaranteed trust is a great option available on specific properties. Many Sellers are open to offers with 50-60% down, 10-20-year amortization at 4-8% interest rates with balloon payments due in 12-36 months with no prepayment penalties.  Financing is now available for US citizens with excellent credit on cross-border residential transactions through an affordable loan program with a minimum of 40% down with fixed term rates up to 15-year mortgage.

 Important Steps to Know about the OFFER PROCESS…

What is the first step to find your Los Cabos vacation Home?  Contact us, we are a reputable Certified MLS brokerage and we would be happy to answer all your questions. While chatting on the phone we can start narrowing down your search based on criteria that is important to you.  It is important to know that there are no key boxes in Cabo like in the States or Canada, so it is best to start your search before you arrive. However, we can still coordinate and schedule times with Sellers if we have at least 24 hours’ notice to access most properties of interest. 

Once you find your perfect vacation home, then it is time to “Make an Offer”.  We will send you the “Offer to Acquire” agreement to review. Then you will be able to specify the terms and Price that is comfortable.  Here is some typical information to expect when presenting an offer…Initial Deposit ($10,000 USD), Due Diligence Period (average 10-20 days which allows you to pay for a home inspection and request any documents), Second Deposit (10%-30% of purchase price), Balance of the Purchase Price is paid at Closing.  Closing costs vary depending on the purchase price because of fixed / variable costs.   Oceanside Real Estate Realtors have a comprehensive understanding of the negotiation process and how to structure deals to assist you through the Purchasing process, every step of the way.

How much are the closing costs?  On average, you can expect the closing costs to be approximately 4.5% – 5% of the purchase price, this includes a 2% acquisition fee for taxes.

What is the next step once an Offer has been accepted?  Our team will assist you in opening an Escrow account within 3-5 days after your offer is accepted.  We work with US based escrow companies and title insurance is available.  We work with Armour Secure, AMX Title, Stewart Title Latin America and the Settlement company. Your Initial Deposit is fully refundable until the end of your due diligence period when it is required to make the non-refundable second deposit and move forward with the purchase unless the offer is stated differently.

Who chooses the Closing Attorney? The Buyer chooses the Closing Attorney, We recommend using reputable closing attorney’s so we can have a smooth closing process. The closing process takes on average 60-90 days before you take possession depending on which banks are involved and the terms negotiated.  We will be there to provide you with sound advice and to give you the keys when you take delivery!!

Oceanside Real Estate
Office +1(805)618-2012
Alvaro Obregon #1505,

Downtown, San Jose del Cabo, MX.
Find your Perfect Vacation Home.



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