How to Buy Property in Los Cabos: Step-by-Step Guide (2026)

Buying a home, condo or lot in Cabo San Lucas or San José del Cabo is simpler than most people expect, as long as you follow the right steps and work with the right people. Whether you live in Mexico, the U.S. or Canada, this guide walks you through the full process, from your first search to getting the keys.

Before you start: set your budget and your goal

Two questions shape every decision you will make:

• What is the property for? A vacation home, a full-time residence, a rental investment or a mix of the three. Rental investors should look at areas and HOA rules that allow short-term rentals.

• What is your all-in budget? Plan for the purchase price plus 5% to 7% in closing costs. Most purchases in Los Cabos are cash; financing exists but it is limited, so get pre-approved early if you need it.

Not sure how much you need? Read How Much Money Do I Need to Buy a Home in Los Cabos?

Step 1: Choose the area

Los Cabos is not one market. Each area has a different price range, lifestyle and rental potential:

• Downtown Cabo San Lucas and Medano Beach: walkable, close to the marina and beaches, strong vacation rental demand.

• Pedregal: exclusive hillside homes with ocean views.

• Tourist Corridor: gated communities, golf and beachfront resorts between both towns.

• San José del Cabo: a quieter, more traditional town with art galleries, the estuary and newer developments.

• Pacific side / Sunset area: ocean-view condos and homes with sunset views and cooler breezes.

See our guide The Best Areas to Buy Property in Cabo San Lucas.

Step 2: Work with a local agent

In Los Cabos, most properties are listed on the local MLS. A local agent gives you access to the full inventory, knows what similar properties really sold for, and coordinates the notary, escrow and bank. The seller normally pays the real estate commission, so the buyer usually pays nothing extra for representation.

Step 3: Make a written offer

Your offer is a written purchase agreement that includes the price, the deposit, the closing date and the conditions (for example, inspection and clean title). Once both sides sign it, you have an accepted offer.

Step 4: Deposit into escrow

Your deposit goes into an escrow account, held by a neutral third party, not directly to the seller. Escrow can be U.S.-based or Mexican. Deposits typically range around 10% of the price, depending on the deal. Never send money directly to a seller.

Step 5: Due diligence

This is the most important step. Before your deposit becomes non-refundable, confirm:

• Clean title and no liens or debts on the property.

• Property tax (predial), HOA dues and water and utilities are paid up to date.

• The land regime: the property must be private property, not ejido land.

• For beachfront property, the federal zone (ZOFEMAT) concession.

• For condos, the HOA rules, reserve fund and rental policy.

• A home inspection for resale properties.

Step 6: Fideicomiso or direct title

• Foreign buyers (U.S., Canada and others) buy through a fideicomiso, a Mexican bank trust, because all of Los Cabos is inside the coastal "restricted zone." The notary requests the government permit (SRE) and the bank holds title on your behalf. Full guide: The Fideicomiso Explained.

• Mexican buyers can take direct title to the property in their own name. No trust is needed.

Step 7: Appraisal and closing documents

The notary orders an official appraisal (avalúo), which is used to calculate taxes, and prepares the deed. You will provide an ID, proof of address and, for foreign buyers, the information for the trust and your substitute beneficiaries.

Step 8: Closing at the notary

You sign the deed before a Mexican notary public, in person or through a representative with a power of attorney. At closing, escrow releases the funds to the seller and you pay your closing costs.

Step 9: Registration and keys

The notary records the deed at the Public Registry of Property. You receive the keys at closing, and your final registered documents afterward.

How long does it take?

A typical cash purchase in Los Cabos closes in 30 to 60 days after the offer is accepted. Trust permits, due diligence and the notary's schedule set the pace.

What are the closing costs?

Buyers should plan for about 5% to 7% of the purchase price. The main items:

• Acquisition tax (ISABI): 3% of the property value (Los Cabos, since January 2025).

• Notary fees, appraisal and registration: vary by property value.

• Fideicomiso (foreign buyers only): SRE permit, bank setup fee and annual fee.

• Escrow fee: varies by company.

On a US$400,000 condo, the acquisition tax alone is about US$12,000. Always ask the notary for a written closing cost estimate before you sign the offer.

Common mistakes to avoid

• Skipping due diligence or letting the deposit go hard before the checks are done.

• Sending money directly to the seller instead of escrow.

• Forgetting to budget for closing costs.

• Buying in a building that does not allow the rentals you plan to do.

• Not naming substitute beneficiaries in the fideicomiso.

Ready to find your property in Los Cabos?

At Cabo Smart Investments we guide buyers from Mexico, the U.S. and Canada through every step, from the first search to a safe closing with a trusted notary.

👉 Tell us what you're looking for or message us on WhatsApp: +52 624 118 3541.

This article is general information and not legal or tax advice. Taxes and fees can change. Confirm the details of your purchase with a Mexican notary public.

+10 years of local experience in Los Cabos real estate — helping buyers find real opportunities, not just listings.

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