How to Buy Real Estate in Baja California Sur, Mexico

Baja Surf Realty August 29, 2023

Baja California Sur, Mexico

Sandy beach meets turquoise water, embraced by swaying palms, offering a serene tropical retreat radiating tranquility & joy.

Surrounded by both the Pacific Ocean and the Gulf of California, Baja California Sur boasts the longest coastline of any state in Mexico. The beaches of this luxurious community are a huge draw for fishermen, surfers, scuba divers, and snorkelers. However, the beaches aren’t the only natural lure to this part of Mexico. Baja California Sur also offers large stretches of mountains and deserts that attract bikers, hikers, and desert racers. With so many opportunities for outdoor activities, it’s no wonder many expats find themselves calling Baja California Sur home.

If you're a foreigner considering investing in property in this captivating destination, you're in for a treat. In this comprehensive guide, we'll walk you through the essential steps and valuable insights on navigating the process of buying real estate in Baja California Sur.

Understand the buying process

Before diving into the real estate market, it's crucial to understand the different ownership options available to foreigners in Mexico. The most common ways to own property include the "Fideicomiso" (bank trust) and establishing a Mexican corporation. The Fideicomiso is a legally established trust that allows non-Mexican citizens to purchase property in restricted zones, like the coastal areas, as per the Mexican Constitution.

When a foreigner wants to purchase property in a restricted zone, they enter into a Fideicomiso arrangement with a Mexican bank that acts as the trustee. The bank holds legal title to the property on behalf of the foreigner, while the foreigner retains all the rights and benefits of ownership, including the ability to sell, lease, mortgage, or pass the property to heirs.

The Fideicomiso is not a lease or a timeshare; it's a full ownership arrangement that provides the foreigner with all the privileges and responsibilities of property ownership. The term of the Fideicomiso is typically 50 years and can be renewed indefinitely. During this time, the foreigner can sell the property to another foreigner, transfer the rights to a Mexican national, or renew the trust.

Prioritize your needs and wants list

Before touring homes in any area, it’s a good idea to sit down and prioritize what you want in a property, and looking internationally is no exception. Start by making a list of your needs and wants. Needs can include everything from the overall size of the house, such as the square footage, to the actual location, such as the proximity to schools or shops.

After you have a good idea of your needs, move on to your wants. Similarly, your wants can include a house’s physical features and other defining characteristics. When prioritizing your list, your needs should always go before your wants. For example, if you need a four-bedroom house and want a pool, you should focus your search on four-bedroom houses and not simply properties with pools.

Tour the property

Since many realtors strive to post listings with the best pictures possible, the photos they post aren’t always completely accurate. Sometimes agents may opt to present a property’s best features while keeping its negative aspects out of view. Because of this, it is incredibly important to tour any house before making an offer. Seeing the property in person (either directly or with the help of a trusted real estate partner) is the only way to gauge the home’s current state accurately and determine whether the house is right for you. Going even further, do not be afraid to open every cabinet and flick on every light switch during your tour. Now is your chance to go beyond the pictures and inspect the property with your own eyes.

One of the challenges of buying property internationally is that touring in person may prove difficult and costly. Virtual tours are a great way to see the flow of a property without being there in person. The listing agent should have options for your viewing, but its important to work with agents who are familiar with the property and the neighborhood, who can tour on your behalf or walk you through virtually.

Baja California Sur offers a diverse range of locations, each with its own unique charm and character. From the vibrant city of Cabo San Lucas to the tranquil town of Todos Santos, researching the different areas will help you determine which one resonates with your lifestyle and investment objectives.

Choose a Reputable Real Estate Agent

Partnering with a reliable and experienced local real estate agent is essential for a smooth property-buying process. A reputable agent can provide you with a wealth of information about the local market, guide you through legalities, negotiate on your behalf, and ensure you find the property that aligns with your goals and preferences.

Local agents can help you with:

  1. Local Market Expertise: A reputable real estate agent possesses in-depth knowledge of the local market trends, property values, and neighborhoods. They can provide you with valuable insights to help you make informed decisions based on your preferences and budget.
  2. Property Search: Agents can access a wide range of property listings, some of which may not be publicly available. They can tailor their search to match your criteria, saving you time and effort in finding properties that align with your needs.
  3. Negotiation Skills: Real estate transactions often involve negotiations, and having a skilled agent can help you secure the best deal. They can use their expertise to negotiate terms, price, and other details on your behalf.
  4. Legal and Administrative Guidance: Navigating a foreign property purchase's legal and administrative aspects can be complex. A knowledgeable agent can guide you through local regulations, required documentation, and the intricacies of property transactions in Mexico.
  5. Language Barrier: If you're not fluent in Spanish, communication can be a challenge when looking in Mexico. A bilingual real estate agent can bridge the language gap, ensuring you fully understand all aspects of the transaction.
  6. Market Comparisons: Agents can provide comparable property sales data, helping you determine whether the asking price is fair and in line with market trends.
  7. After-Sale Support: Even after the transaction is complete, an agent can continue to assist with tasks such as property management, rental services, and local recommendations.

Finances and title insurance

Consider your financing options early in the process. While some buyers choose to pay in cash, financing through Mexican banks or international lenders is also a possibility. Create a comprehensive budget that includes the property's cost, closing costs, property taxes, and potential renovations.

Title insurance is an insurance policy that helps guarantee the ownership rights of the purchaser. When buying real estate in Baja California Sur, it is highly recommended to buy title insurance as it helps protect you from losing your title. This type of insurance helps enforce your ownership rights in the event of liens charged to the previous owner, improper registration of legal documents, survey errors, and a number of other instances.

Title insurance only requires a one-time fee and protects you for as long as you hold the property title, which means it is an easy step that should not be missed.

Consider Legal Assistance

Enlist the services of a qualified Mexican attorney who specializes in real estate transactions involving foreigners. They can guide you through the legal intricacies, review contracts, and protect your interests throughout the purchasing process.

Once you've found your ideal property, your attorney will help draft the purchase agreement. This document outlines the terms and conditions of the sale, including the purchase price, payment schedule, and contingencies. Upon reaching an agreement, the closing process involves transferring funds, signing the necessary documents, and officially taking ownership of the property.

Enjoy Your New Property

Congratulations, you're now a proud real estate owner in Baja California Sur! Whether you plan to use it as a vacation home, rental property, or permanent residence, take time to savor all the beauty and tranquility this region has to offer.

Learn how to buy real estate in Baja California Sur, Mexico

Baja California Sur is a beautiful place in Mexico that many expatriates call home. Owing to the area’s natural beauty, living in this part of the country can give you easy access to pristine beaches and sprawling desert landscapes. Additionally, Baja California Sur is surrounded by many cities and towns that provide residents with plenty of modern amenities. However, before relocating, it is best to consider your options and contact a local realtor for help.

Investing in Baja California Sur, Mexico, real estate is an exciting opportunity for foreigners looking to own a slice of paradise. By understanding ownership structures, enlisting the help of a knowledgeable real estate agent and legal professionals, and conducting thorough due diligence, you can navigate the process with confidence. With its stunning landscapes, vibrant communities, and endless possibilities, Baja California Sur is waiting to welcome you to your new home or investment property.

Baja Surf Realty is a team of local real estate agents with years of experience buying properties in the area. Using their knowledge and expertise, the team has the tools and resources to secure incredible deals on houses and help you ultimately relocate. If you want to know more about how to buy real estate in Baja California Sur, Mexico, then contact Baja Surf Realty today.

Work With Us

We offer customized assistance and creative approaches to cater to our clients' specific requirements, thanks to our team of knowledgeable professionals. Join us in exploring the distinctive Baja California way of life as we guide you through the world of real estate with our expertise and local insights.