Terms to Buy Property in Cabo
From MEX (624) 142 6039
From US (949) 200 6640

Understanding the Process of Purchase Property in Cabo

Category: Investors


buy property cabo

Here are the things you must know!

Closing Costs:

Here in Mexico are several costs you must know before purchasing a property. There are several fees that you must add when you have decided to purchase a In a $500,000 USD property here are the approximate costs and what it is for:

Application and Permit fee - $1,200.00 USD.

Foreign Investment Registration - $700,00 USD.

Appraisal Fee - $325,00 USD.

Tittle Insurance - $3,500.00 USD.

Notary Fee - $5,000.

Acquisition Tax - $10,000 USD.

Public Registration - $1,625 USD.

Certificate - No Liens - $35.00 USD.

Certificate - Property Tax - $10.00 USD.

Fiduciary First Annual Fee - $440,00 USD.

The Settlement Company Fee - $1,800 USD.

IVA Tax - $198,00 USD.

Telephone, Courriers, Misc - $150,00 USD.

Total Cost - $525, 423 USD

This is an estimate only and may vary depending upon your individual circumstances.

buy property cabo


Property transfers have important legal and tax consequences. Don’t permit someone to persuade a full transfer of title to your name isn’t important.

Prior to any transfer of real property by individuals or companies, Mexican or foreign, you should verify that there are no liens or encumbrances registered against the property.

If the property is encumbered, the lien will follow the property and the new owner may have to pay off the lien or risk losing it.A title search is the best form of title verification available.

A Mexican real estate transfer is concluded or consummated at the time the Escritura Publica, the public deed, is signed and witnessed before a Mexican Notary Public. The Escritura Publica, or public deed must then be registered in the property tax department and in the Public Registry of Property and Commerce in the jurisdiction where the property is located in order to protect the interests of the Buyer and to provide notification to third parties.

Here we have some frequent questions:


The definition of an ‘Escrow’ is the method of closing a real estate transaction in which an impartial third party is authorized to keep or safeguard a certain item, generally money, while supervising the fulfillment of specific instructions. Upon satisfaction of said instructions, the Escrow entity delivers the escrowed item to the designated Beneficiary.


Article 27 of the Mexican Constitution grants to the Mexican Nation ownership of the land and water within the national territory, and provides that the Nation shall have the power to transfer ownership rights to such properties to private individuals, thereby creating private property.Article 27 grants the right to acquire the dominion of land and water only to Mexican individuals and companies, and grants the government the discretionary power to grant the same right to foreigners, subject to the conditions that the foreigners agree with the Ministry of Foreign Affairs to consider themselves Mexican nationals with respect to the property acquired and not to invoke the protection of their home governments with respect to the same. The Fideicomiso is the document used by the government to exercise discretionary power permitting foreigners to acquire ownership rights to real estate property within the “restricted areas” of Mexico, granting the Trustee (a Mexican bank), legal title to the property for a determined period of time.

The Parties to a Fideicomiso are:

The Settlor (Seller)

The Trustee (the Mexican bank)

The Beneficiary (Buyer)

The Beneficiary Substitutes (move into title upon death of the primary beneficiary)

For more information, I am here to help you at anytime!

Denise Gonzalez Boisson

Real Estate Advisor @ Baja Smart Real Estate



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