FOREIGN OWNERSHIP IN LOS CABOS, MEXICO was made possible in the 1970s through way of Trust. A Foreigner's Trust is held by a local bank in which you, the Buyer, become the beneficiary. These Trusts are called Fideicomisos and are irrevocable once transfer of beneficial rights takes place. Once you receive your Fideicomiso, you (the new owner) will have the same rights and benefits as a Mexican Citizen - meaning you can build a custom home on a lot, re-manifest the property at time of completion, rent your property for income, and re-sell the property later on.
ONCE AN OFFER IS ACCEPTED, we work closely with the Buyer & Closing Coordinator and make sure everything goes as smoothly as possible. ALL FUNDS are held in a Third Party Escrow U.S. based account during the closing process. Only after the Notary has signed off on the transfer of beneficial rights are the funds released from escrow. On average, closings take about 60 days when transferring deed to a Fideicomiso (Foreigner), and about 15 days when transferring to an Escritura (Mexican National).
CLOSING COSTS are the responsibility of the Buyer and vary depending on the purchase price, notary fees, etc. Buyers can expect a range between 3- 4% the cost of properties above $500,000 U.S Dollars (which includes the 2% acquisition tax). Though closing costs may be a little higher than what a Canadian or American buyer is accustomed to, the payoff comes annually with significantly lower property taxes than the U.S & Canada.
TRUST (FIDEICOMISO) MAINTENANCE FEES are annual fees paid to the bank that manages/holds your Trust. The annual bank Trust fees range from $400 to $600 U.S Dollars.