Step-by-Step Guide to Buying Property in Los Cabos

Karla & Erick | Cabo Realty | Century 21 Paradise Properties

How do you buy property in Los Cabos as an American? In 5 steps: choose the area and community, work with an MLS agent, make an offer and sign a promissory agreement, complete due diligence while a Mexican bank sets up your fideicomiso (bank trust), and close with a Mexican notary. Buying here is not like buying in California, Texas or Arizona, and most deals are paid in cash, but none of it is risky when you know the steps. This is the real process, with numbers from the Los Cabos MLS.

📊 Buying in Los Cabos at a Glance

Listing prices from active listings in the Los Cabos MLS at the time of our last update. See the full comparison in Best Neighborhoods to Live in Los Cabos.

📍 Step 1: Choose the Area and the Community

Los Cabos is three different markets. Start here, because the area decides your lifestyle, your budget and who will rent your home if you plan to.

🤝 Step 2: Work With an MLS Agent

Los Cabos has an MLS, just like the U.S. An MLS agent can show you every active listing, real closed sales and the price per square foot of each community, so you don’t overpay. Ask for closed sales, not only what is listed. See How to Choose a Real Estate Agent in Los Cabos.

📝 Step 3: Make the Offer and Sign the Promissory Agreement

Your offer sets the price, deposit, closing date and what is included (furniture, golf membership, rental history). Once accepted, both sides sign a promissory agreement and your deposit is usually held in escrow until closing. See How Escrow Works When Buying Property in Los Cabos.

🔍 Step 4: Due Diligence and the Fideicomiso

Before you close, the property is checked and your trust is set up:

• Title and liens: the notary requests a certificate showing the property is free of liens. See Verifying Property Ownership in Cabo San Lucas.
• No-debt letters: property tax (predial), water and HOA must be current.
• Bank trust: a Mexican bank becomes the trustee and you are the beneficiary, with a permit from Mexico’s Ministry of Foreign Affairs (SRE). You can use, rent, sell and leave the property to your heirs. Learn more in What Is the Fideicomiso?
• Restrictions: see What Restrictions Do Americans Face When Buying Land in Mexico.

🔑 Step 5: Close With the Notary

In Mexico, the notary (notario público) is a licensed attorney appointed by the state, not a signature witness like in the U.S. The notary verifies the documents, confirms the funds, collects the taxes and fees, and registers your deed in the Public Registry. Closing usually takes about 60 working days with cash and 90 with financing; see How Long Does It Take to Close on a Property in Cabo?

👥 Who Does What

💰 Costs Beyond the Price

Plan for about 5% to 9% of the price in buyer closing costs. The biggest item is the 3% acquisition tax in Los Cabos, followed by notary fees of about 1–1.5%, the fideicomiso setup, the appraisal, permits and escrow. After you buy, you pay HOA dues, property tax and the annual trust fee.

See the full breakdown in Understanding Closing Costs When Buying in Mexico and the yearly costs in Property Taxes and Fees in Los Cabos.

🚫 Common Mistakes

• Choosing the house before the community. Golf, beach and HOA rules change everything.
• Comparing listings instead of closed sales.
• Budgeting only the price, not closing costs and the trust.
• Skipping the lien and no-debt checks.

💡 Our tip: choose the community first, then the house. Ask your agent for closed sales and price per square foot in that community before you make an offer. More in Risks of Buying Real Estate in Mexico.

❓ FAQ – Buying Property in Los Cabos

Can Americans buy property in Los Cabos?

Yes. Because Los Cabos is within 50 km of the coast, Americans buy through a fideicomiso, with full rights to use, rent, sell and pass on the property.

Do I need a Mexican notary?

Yes. Every property purchase in Mexico is closed and registered by a notario público, a licensed attorney appointed by the state.

How much do I need to buy in Los Cabos?

In our main communities, condos start around $239,000 in Quivira and homes reach $29.95 million in Puerto Los Cabos. Add about 5% to 9% for closing costs.

Can I buy without traveling to Mexico?

Yes. Many buyers sign through a power of attorney. Ask us before you plan your trip.

Sources: Mexican Ministry of Foreign Affairs (SRE), restricted zone and fideicomiso rules; Boletín Oficial de Baja California Sur (Dec 27, 2024) via Snell & Wilmer, 3% acquisition tax in Los Cabos; BajaSmart, “Closing Costs in Los Cabos”; active listings in the Los Cabos MLS at the time of our last update; our local experience. Information verified October 2026.

Disclaimer: Karla & Erick | Cabo Realty provides educational content about real estate in Los Cabos. We help buyers, mainly from the United States, find homes, condos and lots in the region. We are MLS members and operate under the brokerage Century 21 Paradise Properties. This is not legal or tax advice.

Karla & Erick | Cabo Realty | Century 21 Paradise Properties