Quick Facts for Buyers in Cabo
Wondering how to buy a house in Cabo San Lucas? Foreigners can legally buy homes here through a bank trust called a fideicomiso. The process usually takes 60–90 days and includes a notary, escrow, and a few key legal steps. Many homes are sold in U.S. dollars and they can come furnished. Expect closing costs around 4–6% of the purchase price. At Baja Properties, our team of agents has been helping locals and foreigners buy and sell properties in Cabo San Lucas for over 30 years. If you need assistance buying a home in Cabo, reach out to us directly and we’ll be happy to help.
Can Foreigners Buy a House in Cabo San Lucas?
Yes, but there’s a catch. Cabo San Lucas is in Mexico’s “restricted zone”—within 50 kilometers of the coast—which means foreigners can’t own land directly. Instead, you buy through a fideicomiso. It’s a renewable trust set up through a Mexican bank and has been used for decades by foreign homeowners here.
What Is a Fideicomiso?
A fideicomiso is a 50-year renewable trust. The title is held by a Mexican bank, but you have full ownership rights. You can sell it, rent it, remodel, or pass it on to your kids. The annual fee is usually around $500–$800 USD. It’s not complicated once you’re in it. Just something to set up properly from the start.
The Buying Process: Step-by-Step
Find a Local Real Estate Agent
Start with someone who knows Cabo and isn’t new to the scene. Your agent should connect you with a notary, help set up the fideicomiso, and walk you through every part of the deal. We always tell buyers—find someone you’d trust with your house keys and your Spanish translations.
You can explore Cabo real estate or baja mexico real estate to see what’s on the market right now.
Making an Offer and Escrow
Offers are written in both English and Spanish. Most properties are priced in USD. After you agree on terms, you’ll open a third-party escrow account (around $650–$700 USD) and wire a 10% deposit.
Due Diligence and Inspections
You’ll hire an inspector, get a property survey, and confirm a clean title. Your agent will guide the paperwork. If something doesn’t check out, you can walk away during the due diligence period—usually 30 days.
Closing and Title Transfer
The notary handles everything—this isn’t a DIY process. Once all fees are paid and your fideicomiso is created or transferred, you receive the keys and the sale is recorded. You're now officially a homeowner in Cabo.
Costs, Fees, and Financing
Typical Closing Costs
- Fideicomiso setup: ~$2,000 USD
- Annual fideicomiso fee: $500–$800 USD
- Escrow: $650–$700 USD
- Inspection, survey, title search: ~$400–$500 each
- Notary/legal: included in the 4–6% closing cost range
Financing Options for Foreigners
Most foreign buyers pay cash. Some U.S. lenders offer cross-border loans with high down payments. Others use home equity lines from their U.S. banks. Mexican banks do lend to foreigners, but you’ll need Mexican residency and a tax ID.
Best Neighborhoods to Buy in Cabo San Lucas
Marina Area
Steps from restaurants, bars, and Medano Beach. Great for short-term rentals or people who want to be in the middle of the action.
Pedregal
Private, gated, and quiet. Ocean views, high-end homes, and a mix of full-time residents and seasonal owners.
El Tezal & Tourist Corridor
You’ll find newer builds, gated communities, and condos. Good for families and long-term living with easy access to San José del Cabo.
Notes on Rentals, Property Management, and More
- Vacation rentals: Homes here can bring in strong income.
- Property management: We can help connect you with reputable property managers that help with maintenance, bills, and guest logistics.
- Relocation support: We assist with utilities, moving coordination, and local paperwork.
- Legal and tax help: Speak with Baja Properties for access to local pros for a smooth setup.
Current Market Trends & News
The market’s still moving fast. In early 2025, sales were up over 70% compared to the year before. Most homes sell quickly if they’re priced right, especially in beachfront areas or golf communities. For verified stats, check INEGI Baja California Sur or browse the baja real estate listings.
FAQ: How to Buy a House in Cabo San Lucas
Can foreigners buy homes in Cabo?
Yes, using a fideicomiso.
How long does the process take?
Usually 60–90 days with cash. Financing takes longer.
Do I need to speak Spanish?
It helps, but most real estate agents and notaries speak English.
How much are closing costs?
4–6% of the purchase price, plus the annual fideicomiso fee.
Can I rent my house?
Yes, vacation rentals are popular and profitable in many areas.
Is it safe to own property in Cabo?
Yes. It’s common and secure. See our guide on is Cabo safe?
What if I plan to drive while living there?
See our driving in Cabo San Lucas guide for details.
Can I sell my home later?
Yes, just transfer the fideicomiso to the new buyer.
Do I need a visa to buy a house?
No. You don’t need residency to buy, just valid ID and a passport.
Need help getting started?
We’re here to guide you through every step—from house-hunting and escrow to utilities and community introductions. Start by browsing the Cabo real estate listings or reach out for a consultation.