The buying process is very similar to that in the US or Canada. Once you find a home that is perfect for you, we negotiate a purchase with the seller using a format very similar to one in the US. You pay a refundable earnest money deposit and we have the home inspected, checked out legally, and review all ownership documents during the due diligence period. Once you are satisfied, you make your down payment and the remainder of the purchase price at closing.

During the closing process, we must work with both the government and the bank for the title, we estimate that closing will take 3 to 4 months. Our Real Estate team will guide you throughout this process to guarantee the certainty of your investment.

• Ownership of real estate in Mexico is via a Mexican land trust called a fideicomiso (pronounced fee-day-coe-me-so). The trust has a term of 50 years and can be renewed in perpetuity to allow for long-term control of the asset or to will the land from generation to generation. For this purpose, we can recommend a couple of companies to obtain title insurance on properties purchased in Mexico.
  With the advent of the North American Free Trade Agreement (NAFTA), the Mexican government recognized that it was crucial to make foreign investment in Mexico simpler for non-Mexicans. Because the Mexican Constitution prohibits non-Mexicans from purchasing or owning real estate within 60 miles of the U.S. international border, or within 30 miles of the Mexican coast, an innovative and secure method of holding title was created. This method allows non-Mexican ownership through a Mexican property trust (fideicomiso). This is a trust agreement, much like an estate trust in the U.S., which gives the Purchaser all of the rights of ownership. In order to gain the rights of ownership, the Department of Foreign Affairs in Mexico City issues a permit to the Mexican bank of the Purchaser’s choice, allowing the bank to act as the Purchaser of the property. Essentially, the bank acts as the “Trustee” for the trust and the Purchaser is the “Beneficiary” of the trust. The trust is not an asset of the bank; the bank simply acts as the Trustee to hold the trust.
  Much like living wills or estate trusts in the U.S., the Mexican bank, or Trustee, takes instruction only from the Beneficiary of the trust (the Purchaser). The Beneficiary has the right to use, occupy, lease, and possess the property, including the right to build on it or otherwise improve it. The Beneficiary may also sell the property by instructing the Trustee to transfer the rights to another qualified Purchaser or bequeath the property to an Inheritor. The initial term of the trust is 50 years, however, the trust can be renewed for additional periods of 50 years indefinitely, providing for long-term control of the asset.
• The Purchaser holds the same rights as a property owner in the U.S. or Canada, including the right to enjoy, sell, rent, improve the property, etc. This is not to be confused with a land lease. The property purchased is placed in a trust with the Purchaser named as the Beneficiary of the trust — the Purchaser is not a lessee. If the property purchased is already held in a trust, the Purchaser has the option of assuming that trust or having the property vested in a new trust.
• To ensure ownership of the real estate purchase, in the trust document, the Purchaser must name the Beneficiary or foreign Owner of the property. The purchaser can be an individual, multiple partners, a foreign corporation, an estate trust, a living will, or another entity. The Trustee of the trust (the Mexican bank) will take direction from whomever you name as the Beneficiary. Note: You may legally name a U.S. corporation as the Beneficiary of the trust.
• On average, Del Mar Real Estate can obtain your trust within 60-90 days. In some cases title has been transferred in as little as five weeks. At Del Mar Real Estate, we partner with Federal and State notaries for all of our closings in order to secure your trust. A Notario Publico in Mexico is much different from a Notary Public in the U.S. In Mexico, Notarios are specialized attorneys who act on behalf of the state and federal government in relation to any transaction; they are comparable to a U.S. Clerk of Courts. We oversee the entire process and make certain you understand each and every step involved.
• The Purchaser only releases funds once the Purchaser holds clear title. By utilizing our Third Party Escrow service, your money is held in an individually numbered escrow account until your trust is complete and the property rights have been transferred to you, the Purchaser.

• Whether you purchase real estate in the U.S. or Mexico, Del Mar Real Estate recommends Title Insurance for every property you purchase. We insure our cars, homes, and health — it is just as important to insure one of your largest investments: your property. Title Insurance is available for properties in Mexico purchased by U.S., Canadian and Mexican citizens.

  • Fact: Just because you have a trust does not ensure you have free and clear title. Title insurance is a necessity.
  • Fact: In a Del Mar Real Estate property search, the property’s title is searched all the way back to the Mexican Revolution. Most trust-securing title searches only go back to one or two owners of record.

Our Del Mar Real Estate team will provide comparable sold home statistics that will support the price of every purchase you make. They have public and private sold information dating back 25 years and know the market, trends, and advisors to ensure that you make the best choice for your family.

Taxes

There are two taxes you will pay when you buy a home in Mexico. The first is the Acquisition Tax (ISABI), which is 2% of the total registered purchase price. Typically, notaries calculate the tax to be 2.1% to allow for peso/dollar exchange rate variances. This tax is paid upon purchase and becomes part of your Cost Basis making it fully deductible if you decide to sell your property in the future.

The second tax is Property Tax (PREDIAL), which is very low in Mexico.  Property Tax is not based on the purchase price; it is based on the property tax value assigned to the area in which the property is located and the size of the property.

In the event you are selling your home, the Notary will calculate the Seller’s capital gains tax based on the purchase price, in Mexican Pesos, at the time of acquisition. This information is indicated on the deed of title. The notary then adds to the Seller’s original purchase price the cost of any construction or remodel (original facturas/receipts required) as well as the closing costs the Seller paid at the time of purchase. After applying annual inflationary credit and construction depreciation factors, the resultant cost basis is determined. The Notary then determines the capital gains tax (ISR) by subtracting the cost basis, as well as the sale’s commission from the sale price, to obtain the ‘gain’, which is taxed at 35%.

Visas

Every person entering Mexico is obligated to obtain a tourist visa for up to 180 days, which does not include permission to work. This visa is provided by immigration officials upon arrival to Mexico. If people wish to stay or live indefinitely in Mexico for periods longer than six months, whether or not they have acquired property, they must apply for a visa at the Mexican consulate in their home country. This is typically a simple process when work is not involved. Both permanent and temporary resident visas are available, with the latter being the easiest to obtain. In order to purchase property, the buyer is obligated to have legal immigration status in Mexico.

DelMar Development

Construction:

We have built more than 250 homes here in Los Cabos and are experts at making the process seamless. In our nearly 30 years we have amassed countless testimonials of owners who have built a home with us. We use American and Mexican architects, builders, and engineers, and the process is similar to that in the US. We’ll find the right home location for you and then design a custom home based on your desires. Robert Jones, the head of our Construction Division, has been personally involved in building each of the homes here. His expertise is invaluable.

Renovations:

Do you like the view but think it needs a facelift?

We have an entire division of our company that focuses on renovations, Del Mar Development. We designed and built the homes and are uniquely qualified to renovate them when they need it. Our team will not only offer an easy renovation process but will also guarantee the quality of construction we have used for over 25 years, with U.S. standards that have proven to be the best of all residential communities in Los Cabos.

Yes, Del Mar offers 365 Management services to Cabo homeowners, the best residential services and management company with more than 25 years of experience. Our professional team will take care of you and your family while you’re here by providing transportation, shopping, and other concierge services. We are available 24/7, 365 days a year to help you find tenants, manage your property, and take care of all the details so you can relax and enjoy the effortless living promise we offer our residents.

Our staff is fully dedicated and committed. We know they are our biggest asset and take care of them to offer continuous quality service, that is why they have an average seniority of 15 years.

Our communities are legally incorporated horizontal condominiums, with strict architectural guidelines and bylaws to enhance your use and enjoyment of the property and protect the integrity of the neighborhood and the value of your asset. The Homeowners Association of our communities ensures that all collective rights and interests of homeowners are respected and preserved. Their core principles are to provide services to residents and homeowners, protect property value, and meet the established expectations of homeowners.

They maintain a standard of appearance of the properties and common areas, abiding and reinforcing regulations and guidelines, as well as upkeeping the community standards, the HOA supports stable property values for all homeowners.