Buying Pre-Construction in Los Cabos as a U.S. Buyer: How to Protect Your Deposit
Karla and Erick Cabo Realty
Last update: 2026-10-28
Karla and Erick Cabo Realty
Last update: 2026-10-28
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Is buying pre-construction in Los Cabos a good idea for a U.S. buyer? It can be. Developers often offer lower prices, payment plans tied to construction milestones and a chance to choose finishes. But you’re paying for something that doesn’t exist yet, in another country, so the risks are real: delays, one-sided contracts and, in the worst case, a project that stops. The good news is that Mexico regulates pre-sales by developers under NOM-247-SE-2021, which gives buyers specific rights. Here’s how buyers from California, Texas and Arizona can protect their deposit, including what we’ve learned buying pre-construction ourselves.
📘 Free Los Cabos Buyer Guide
The 8 essential steps to buy safely in Los Cabos as a U.S. buyer, from the fideicomiso to closing.
| 5 business days To cancel after signing the developer’s contract |
5 years Minimum warranty on the structure |
| 3 years Minimum warranty on waterproofing |
PROFECO Developer contracts must be registered there |
In our communities, current examples include La Cresta, the first release connected to Querencia’s second Tom Fazio course, Campo Alto, and the new Cabo Real Surf Club inside Cabo Real.
| Topic | What’s Different in Los Cabos |
|---|---|
| Ownership | You’ll own through a fideicomiso (bank trust), usually set up at delivery, not when you sign. |
| Your deposit | Escrow isn’t required by law in Mexico. Ask in writing where each payment goes. |
| The contract | The Spanish version governs, even if you also receive an English translation. |
| Payments | Usually wired in U.S. dollars from your U.S. bank. Confirm the account belongs to the developer or escrow, never to an individual. See How Currency Exchange Affects Buying Property in Mexico. |
| Following the build | You’ll be far away. Ask for monthly photo or video progress reports and visit at key milestones. |
We’ve bought pre-construction ourselves, and here’s what we learned:
NOM-247 is Mexico’s official standard for the sale and pre-sale of homes by developers, builders and intermediaries. Key protections:
| Right | What It Means for You |
|---|---|
| Information before you pay | The developer must show proof it owns or can sell the property, its licenses and permits, the specifications and finishes, and the PROFECO contract registration number. |
| Registered contract | The contract must be registered with PROFECO and written in Spanish. If the one you sign differs from the registered version to your disadvantage, those changes don’t apply. |
| 5-day cancellation | You can cancel within 5 business days of signing, with a refund within 5 to 15 business days, minus only documented operating costs if agreed. |
| Penalty for both sides | The contract must include a reciprocal penalty, so a late delivery has consequences for the developer too, not just a missed payment for you. |
| Minimum warranties | 5 years on structure, 3 years on waterproofing and 1 year on everything else, counted from the actual delivery date. These can’t be waived. |
| Choice of notary | You can choose the notary (with limits if you use certain mortgage financing). |
☐ Proof of finished projects, on paper. Don’t accept “we’ve built many projects” as an answer. Ask for documents from projects the developer has already delivered, such as the condominium regime (régimen de condominio) and deeds signed with buyers, and visit them in person.
☐ Financial strength. Ask how the project is financed and how much is already built, not just sold.
☐ PROFECO registration number of the contract. If the contract isn’t registered, ask why before you sign.
☐ Penalties for both sides. Check that the contract says what the developer owes you if it delivers late, not just what you owe if you miss a payment.
☐ A real estate attorney’s review of the full contract, clause by clause, before you sign. Remember the Spanish version is the one that governs.
☐ Title and permits. Confirm the land is free of liens (other than the construction loan) and that construction permits are in place.
☐ Delivery date written in the contract, not just in the brochure.
☐ Exact specifications: square footage, finishes, appliances, A/C, parking, storage.
☐ Payment schedule tied to real progress, not to dates alone.
☐ Where your deposit goes. Ask whether payments are held in escrow or a project trust. See How Escrow Works When Buying Property in Los Cabos.
☐ HOA fees and rules once the project is finished, including rental rules.
💡 Tip from Karla & Erick: In pre-construction, the developer’s sales team works for the developer. Having your own agent and attorney costs you nothing extra in most cases, and it means someone in Los Cabos is reading the contract on your side, checking the site while you’re back in the U.S. and ready to act if the project is delayed.
In most pre-sales, you sign a purchase or promise contract and pay a deposit and installments during construction. The final deed and your fideicomiso are usually signed at delivery, when you also pay the remaining balance and the closing costs. Budget for them from the start: see Understanding Closing Costs When Buying in Mexico and Risks of Buying Real Estate in Mexico and How to Avoid Them.
It can be, with a developer that can prove it has delivered other projects, a PROFECO-registered contract reviewed by your own real estate attorney, and payments tied to progress.
In our experience, rarely. Plan for delays, and make sure the contract includes a penalty the developer pays if it delivers late.
It depends on the project. A small group of villas can take far less time than a large condo building or a master-planned phase. Don’t rely on the brochure: ask for the construction schedule and make sure the delivery date and the penalty for delays are written in the contract.
Review the delivery date and penalty clause in your contract, and have an attorney send the developer a formal written demand. Reputable developers often negotiate, for example with compensation or upgrades, to protect their name.
Yes. Under NOM-247, developers’ sale and pre-sale contracts must be registered with PROFECO. Ask for the registration number before you sign.
It depends on what you value. Building on your own lot gives you full control, but you manage the architect, permits and contractor, often from the U.S. Buying a finished home is the fastest and you see exactly what you get. Pre-construction sits in between: a lower entry price than finished homes, with the developer handling the construction.
Under NOM-247, you can cancel a developer’s contract within 5 business days of signing and get your money back, minus documented operating costs if agreed.
At least 5 years on the structure, 3 years on waterproofing and 1 year on other elements, from the actual delivery date.
Looking at a pre-construction project?
We help buyers from California, Texas and Arizona compare pre-construction with finished homes, check the developer’s track record before they sign and keep an eye on the build while they’re back home.
Sources: NOM-247-SE-2021 (Diario Oficial de la Federación); MLS Vallarta, “NOM-247-SE-2021, what is it and what benefits does it provide?”; Tanda Casa, buying a new home from a developer under NOM-247; and our own experience buying pre-construction in Los Cabos.
Disclaimer: This article is general information, not legal advice. Every project and contract is different. Have your own real estate attorney review any pre-construction contract before you sign. Karla & Erick are MLS members with Century 21 Paradise Properties. Information verified October 2026.
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Your home in Los Cabos, with people who live here.
Karla Andreu and Erick Flores are MLS members with Century 21 Paradise Properties, focused on luxury golf and oceanfront communities: Querencia, Palmilla, Pedregal, Quivira, Diamante, Cabo del Sol, Cabo Real, Club Campestre and Puerto Los Cabos.
Most of our clients come from California, Texas and Arizona. We help them buy, sell and relocate with real market data, honest advice and one clear plan from the first video call to closing day.
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