Mexico has a lot to offer people to looking to buy or invest in real estate. Cabo San Lucas is among the best places to buy property in Mexico. The beautiful sceneries and the unique Mexican flavor are an excellent match. Even better, Los Cabos offers a wide variety of properties and styles. It is easy to find a dream home or an investment that will earn you handsomely in the future.
If you want to buy a home in Los Cabos, you need a deep understanding of the rules and regulations on the property and home ownership.
Buying and Selling a Property
Property transactions here involve many parties. These include the buyer, seller, escrow agent, closing agent, and the notary public. Others that may be required include the bank and the land offices.
Home Ownership
The first thing to note is that property ownership in Cabo is through Fideicomiso. It is a renewable Mexican property trust that covers lands that are 100 kilometers from the border or 50 Kilometers from the coast. Since most of Cabos is within the restricted zone, it is impossible for Foreigners to hold title to an estate legally.
A property owner becomes a beneficiary of the trust for 50 years. Once the 50 years are over, the property owner only needs to renew the trust permit to continue enjoying the property. You can, however, hold a title if you buy a property out of the restricted area.
Financing
Whether you are paying in cash or getting Mexican financing, an independent escrow company comes in handy. This company will handle your finances and keep in touch with the closing agent to ensure that the agreed amount is transferred to the seller once the property signing is done.
Property Taxes
After buying a property, you will be responsible for property taxes. You can update the value of your property annually with the municipal authority if you make any additions to the asset during the year. These updates will affect the tax you pay at the end of the year.
Timelines
Allow some reasonable time for the process to be completed. Authorizing a power of attorney to a trusted person is possible.
This way, the deed transfer is signed even when you are out of the country. A power of attorney is limited; you have nothing to worry about in future. Most of the other paperwork can also be handled electronically.
Getting a Real Estate Agent
If you are not conversant with the process involved in owning a property, you need to get a good local Realtor in Cabo that will help you identify prime properties but also help a great deal with the property transfer process. The Realtor will also recommend good financing options that are available to investors.
Owning property is Los Cabos does not have to be complicated. Property ownership in the Cabo area can be made easy by following the right processes… and above all, getting a competent property agent
