I am often asked if you can own property in Mexico and the answer is yes.  We purchased our first home, Casa Oasis, ( a spec home) in 1997 and sold it in 2005.  Our second home in Cabo was a fixer upper.  After a year of  renovations we moved in and continue to enjoy Pacific Ocean breezes and the fabulous weather in Cabo.

Casa Oasis is now in our rental inventory and we have many great memories of our time  in Casa Oasis.

As in the US, when purchasing a home in Cabo, you should work with a reputable Realtor.  Having lived in Cabo since 1998 I personally know a number of Realtors who I would recommend.  I have featured a short list on this blog but have several more I would also recommend. The process is similar to the US with a purchase contract (in English and Spanish), negotiations between buyer and seller, transfer of funds, closing and possession.  The following information will familiarize you with terms and people involved in the purchase of real estate.

Fideicomiso is a word you will want to know about.  In the “restricted zone” of Mexico, which is 100 kilometers from the border and 40 kilometers from the coast, a foreigner may purchase property only by means of a fideicomiso (fee-day-coe-me-so), commonly known as a trust.  A fideicomiso is a 50 year renewable bank trust granting a foreigner purchaser the right to use, improve, rent, sell or otherwise enjoy the property.  The foreigner purchaser is the beneficiary of the trust.  As the beneficiary, the buyer enjoys all the rights of home ownership, including the right to sell, lease, improve, mortgage or will the property.  A fideicomiso can be extended by another 50 years at the end of its terms.  To extend a combined 100 year term, the owner must apply for a new foreign affairs permit.  A buyer may elect to be assigned the rights of the seller’s existing trust based on the time left on the trust.  This process is called an assignment of rights (cession de derechos).  A minimal annual fee is paid to the Mexican Bank for the trust.

A notary in Mexico is an important person in any real estate transaction.  A notary, called a “notario publico”, is a licensed attorney certified by the state or federal government to act as an official and unbiased representative of the government of Mexico.  A notary in Mexico has much more responsibility than a U.S. notary, with responsibility to both the buyer and the seller.  The Notario Publico ensures the legality of the transfer of title:, calculates and retains the seller’s capital gains tax on behalf of the Mexican government; collects and pays the purchaser’s 2% acquisition tax; coordinates appraisals, certificates of no liens and certificates of no debt; and requests all corresponding permits.  The notary must record the transaction at the public registry and tax (cadastral) office after closing.  The buyer will be charged a fee based on the value of the property.  Any real estate transaction not ratified before a notary and duly recorded in the public registry is considered invalid and not enforceable.

What is the Trustee Bank?  This is the Mexican bank authorized to act as trustee.  It must be a Mexican registered financial institution with an established trust department.  The properties held in trust by the bank are not assets of the bank.  We have used BBVA Bancomer and ScotiaBank Inverlat, S.A. personally.  As a purchaser, you have the right to select any qualified Mexican bank as your trustee bank.  Check with your professional Realtor for additional trustee banks.

Title Insurance?  Yes    Title insurance is an insurance policy for property ownership.  Title policy is the only monetary indemnification a buyer can obtain to guarantee ownership of Mexican real estate.

How long does closing take in Mexico?  Normally closing takes 60-90 working days.  However, due to Mexican holidays, permit delays and the trustee bank delays may happen.  Such delays are not considered defaults by the buyer or seller as they are beyond their control.

What does a closing date mean in your contract?  This date is established in the Offer to Purchase or the Buy/Sell Agreement.  It is important that you understand that this “closing date” is a target date as the actual final closing date is determined by the notary.

Hopefully this information has been useful to you who are considering purchasing property in Mexico.  Our experiences in purchasing property in Mexico have been positive and rewarding.

Joanie and I first met at a Cabo Tomatoes meeting, a group for women, about 11 years ago when I first moved to Cabo. She has definitely made her mark on Cabo as being one of the top agents in the area specializing in The Pedregal. We have enjoyed both a professional relationship and friendship over the years.

Joanie Feinstein and her ex husband, Ed, arrived in Cabo the first time in 1981 and within 2 days had purchased property in The Pedregal for a home. They later purchased land to develop the condominium project Andalaya with the developers, which they completed and sold to many of their Chicago friends. And so the love affair with Cabo began. Her home was completed in Pedregal 17 years ago and she has been selling for the developers of Pedregal, the Diaz Rivera family, which has the franchise of Coldwell Banker. She has been the top sales agent in all of Mexico for Coldwell Banker for the past 5 years. Through these business transactions she has acquired many great friendships and continues to love every minute of this life.

“The Queen of Casa del Mar”…Wendy Knapp has lovingly been given the name “Queen of Casa del Mar”, as her regal reign in paradise began under a palapa on a dirt road in the middle of no where…with only the artist renderings and a developer’s dream.

That developer was Eduardo Sanchez-Navarro and the dream was Cabo Real, the 2000 acres all-inclusive 5 star resort and championship golf course in the “Golden Corridor”.

Cabo Real is now home to 7 world famous hotels, Westin, Marqius, Hilton, Melia, Las Ventanas, Dreams and the Casa del Mar Boutique Hotel & Resort, where Wendy can still be found 20 years later, representing her clients and their prospective properties.

Wendy & her husband Randy, who are avid golfers, have been specializing in beach and golf course properties in Los Cabos since 1989. Drawing on their experience, they offer professional advice on the Baja real estate market in Cabo and will educate you about your options when buying property in Mexico.

As experienced Multilist Broker’s they invite you to browse their website to view the fantastic properties available in paradise.

www.rionda-knapp.com

I have known Wendy for about 9 years and have found her to be knowledgeable, professional and a person who always has her client’s best interest in mind.

Realty Executives Los Cabos

Carol S. Billups
Broker/Owner
Telephone in Los Cabos (office): (624) 143-3011
Telephone in Los Cabos (cell): 044-624-147-7541
Telephone from US/CAN: 760-481-7694
Fax: 143-3011
http://www.reloscabos.com/

Once upon a time Carol and her husband Bob built a vacation home in Los Cabos. Then one fateful day, driving back to San Diego, they pulled off the road, looked at each other and asked “Why are we going North?” When neither could find an answer other than to retrieve the rest of the dogs, they made a permanent move and have never regretted it. Carol finds great pleasure in helping her clients buy and sell property, with many wonderful and long-lasting friendships to show for it. Originally from Illinois, Carol is a graduate of the University of Chicago.
Realty Executives Los Cabos, is a service-driven general real estate agency in Cabo San Lucas. They believe in their motto: Integrity, Service, Imagination and make buying or selling real estate in Los Cabos a pleasure, as well as an excellent investment.

Buying real estate in Los Cabos is safe and secure. But you’ve got to do it the right way. Realty Executives Los Cabos take time to educate clients about the process of acquiring real estate in Los Cabos. They have assembled a support team of experienced and trustworthy attorneys, closing agents, bankers and escrow companies for you to choose from. They and your Executive will make the buying or selling process a pleasure. And after you’ve bought or sold Realty Executives will still be here to help.

All of us here at Realty Executives Los Cabos are passionate about Baja, Los Cabos, and of course, real estate. We hope that you will choose to work with us, a group of experts in Los Cabos real estate. Experience Excellence – Experience Realty Executives Los Cabos.

I met Carol and her husband Bob when they first moved to Cabo. In fact they were one of our first clients as we both managed and rented their home before they made their permanent move. Carol knows Los Cabos, cares about her clients and is an excellent resource.