From: 1 U.S. dollar
To: 12.3222515 Mexican pesos
are different in Los Cabos than wherever you call home. Not better, not worse but just different.
Your Cabo property will be held in trust with a Mexican bank; this is a safe and secure method of holding real estate. In the briefest form: the trust owns the land and you are the beneficiary of the trust. You have the right to live in your property, build or remodel at will, sell it or pass it to your heirs free of probate. Your realtor will work with a team of experts to set up this trust and obtain US-based title insurance for you. In some cases you will be assuming an existing trust but in most you will be creating a new one.
Considering that you must get permission from the federal government to set up this trust you will understand that closings take a bit longer here than you’re used to. Make plans for 2-3 months to complete the process. After your closing your trust must be registered with the municipality, this can also require patience on the part of the buyer. Having your perfect dream vacation home, and having the paperwork done properly, is well worth the wait.
You will be responsible for the costs associated with the trust and you will also pay a federal acquisition tax (2 of the purchase price). These closing costs can be as much as six percent of the purchase price. Most first-time buyers are surprised to see the fees charged to the Notario Publico. Here in Mexico the Notario is a government appointed attorney who presides over your transaction, very similar to a magistrate in some states. The trust fees, your acquisition tax, and the Notario’s fees are the majority of your closing costs. You should get an estimate of closing costs prior to preparing your offer to purchase.
At Cabo Realty Pros Los Cabos we have years of experience in transactions in Los Cabos; we will help make your closing process as smooth as possible and will explain each step to you in detail.