The Buying Process

Purchasing a home in Los Cabos will feel very familiar in many ways but there are a few differences that you will notice below.

Step One (the search)

As with any home search it begins by working with your realtor to establish your wants and needs, your budget and your timeframe.  Once that is established you can start to tour homes.  Los Cabos is a little different this way in that in most cases the selling agent will be present during the showing of the home.  We do not use lockboxes in Los Cabos.

 

Step Two (the offer)

Once you have found your dream property, we will issue an offer to purchase or letter of intent for the property and begin negotiations.  This operates exactly as it would north of the border and will feel very familiar.  Most offers here in Los Cabos require 10% down with the remainder due at closing.  In the case of pre-construction the minimum is 35% with the remainder due in installments throughout the building process.  All offers must include the use of an escrow account which has a non refundable fee of $650 USD.

 

Step Three (conditions)

Once we have an accepted, we will have a period of time in which to remove our conditions.  typical conditions include home inspection, review of HOA documents and Inventory reports.  This list is fairly recognizable with a few exceptions.  There will be a requirement to complete a “Know Your Client” form.  An inventory report is also standard because most completed homes are sold furnished.

 

Step Four (pending)

This step requires very little effort from you other than collecting your documents for the closing attorney.  Once all the documents are collected…you wait.

 

Step Five (closing)

Closings in Mexico are where things feel very different.  First off, you will be purchasing this property through a bank trust (fideiocomiso) unless you plan to open a Mexican Corporation (not recommended).  The fideiocomiso system has been around since the 70s and any foreigner purchasing land in the Baja is required to use it.  There is a yearly cost to the fideicomiso will vary between banks but should be in the 500-600 USD range.

Your closing costs will vary depending on the value of the property.  The lower the value of the property…the higher the percentage for closings costs (this is due to some fees being set and others being based on a percentage).  An average closing cost for a $500,000 condo with a fideicomiso is usually in the 5% range.

You must be present to sign the final documents unless you have a limited power of attorney in place.

An inspection of the property usually takes place just prior to the closing to ensure that everything is still the same as when the offer was made.

One final note.  Closing dates are fluid here in Mexico.  Do not plan your trip for the closing until your closing attorney says it is safe to do so.

 

The chart above is a typical buying process in Los Cabos.  That being said there are many variables which affect the process and add time and money.  Every property is different and until you have chosen a property those variables remain unknown.

Dare to Dream

Begin Your Search Here

Let’s Start the Journey...together

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

My Friend in Cabo Real Estate is a subsidiary of Coastaro Real Estate. Click on the link below to visit us.

Toll Free

1 888 720 0224

Mobile / whatsapp

+1 503 702 0369

Copyright © 2024 My Friend in Cabo