How long does it take to close on a property in Cabo San Lucas after an offer is accepted?

For a cash purchase with clean title, expect the process to run roughly 45 to 90 days from acceptance to the signing table. That span covers due diligence, SRE permit approval for the fideicomiso, deed preparation by the notario, and the final closing at the notario's office. Financed transactions run longer, often in the 90 to 120-day range, because lender documentation adds additional steps to the sequence.

What is the fideicomiso and do I really need one?

Mexican law requires the fideicomiso for any foreign buyer purchasing residential property in Cabo San Lucas, so it is not an optional structure. Because Los Cabos falls within Mexico's coastal restricted zone, foreign buyers cannot take direct deed title. Through the fideicomiso, a Mexican bank holds title on paper while you retain full beneficiary rights: the ability to sell, rent, remodel, and pass the property to your heirs. The trust runs for 50 years, renews indefinitely, and transfers to the next buyer when you eventually sell.

What closing costs should I budget for in Cabo?

Closing costs for foreign buyers in Cabo San Lucas generally run between 5% and 9% of the purchase price, a range that has held through 2025–2026 across typical residential transactions. The largest single line item is the ISABI property acquisition tax, set at 3% of the purchase price or cadastral value (whichever is higher) as of January 1, 2025. Additional items include notario fees, fideicomiso establishment costs, Public Registry recording fees, and a government-certified appraisal. Independent legal fees, if you engage your own attorney, are on top of that. Your closing coordinator will provide a detailed settlement statement before any funds are transferred.

Can I take possession of the property before the deed is registered with the Public Registry?

Yes. Possession transfers on the day you sign at the notario's office, not when Public Registry recording is complete. Recording can take anywhere from a few weeks to several months depending on the municipality's current workload, but that lag is standard practice in Mexico. Your legal ownership, right of occupancy, and right to rent the property are all intact during that period.

What does a Notario Público actually do in a Mexican real estate transaction?

Unlike a notary in the US or Canada, a Mexican Notario Público holds quasi-judicial authority as a government-appointed attorney. For property transactions, the notario conducts the title search, confirms the property is free of liens, drafts the official deed, calculates and collects taxes and closing fees, and submits everything to the Public Registry for recording. Both buyer and seller work with the same notario, whose mandate is to protect the legality of the transaction rather than advocate for either party. Many international buyers also retain a private attorney to represent their specific interests during negotiations and document review.

What Happens After Your Cabo Offer is Accepted?

by Michael Nicol

Having your offer accepted on a home or condo in Los Cabos is exciting, but it is also the beginning of the closing process. If you are buying property in Mexico for the first time, you will probably have questions about escrow, inspections, closing costs, the bank trust and when you will receive the keys.

Although the process differs from buying real estate in the United States or Canada, it is well established and straightforward when you have an experienced real estate and closing team guiding you.

Here is what typically happens after your offer on a Cabo property is accepted

1. The Purchase Agreement Is Fully Executed

Once the buyer and seller have signed the offer and any counteroffer, the agreement becomes fully executed. It establishes the purchase price, deposit amount, inspection period, closing date, included furnishings and other negotiated terms.

Your Cabo4Sale agent will review the important dates and responsibilities with you so that nothing is overlooked.

At this point, the property is generally changed in the Los Cabos MLS from active to pending with contingencies. Other buyers may still be able to submit backup offers, but the seller has already agreed to proceed with your transaction as long as you meet the terms of the contract.

2. The Escrow Account Is Opened

The next step is opening escrow with a recognized third-party escrow company. Escrow is separate from the real estate brokerage and closing department. Its role is to receive and safeguard the buyer’s funds until the conditions for releasing them have been satisfied.

The buyer will receive wiring instructions for the earnest-money deposit and, in many cases, an initial deposit toward estimated closing costs.

Before sending any money, always confirm the wiring instructions through a known telephone number or another trusted method. Never rely solely on wiring instructions received by email, as real estate wire fraud can occur anywhere in the world.

After the wire arrives, the escrow company issues a receipt confirming that the funds have been deposited.

3. The Buyer Provides Identification and Trust Documents

Foreign buyers are generally asked to provide several documents for the closing file, including:

Clear copies of their passports

Driver’s licenses or other identification

Proof of their home address, such as a recent utility bill

Immigration documents, when applicable

Marital-status information

Information for the substitute beneficiaries of the bank trust

The closing team may request additional documents depending on how the property is being purchased and whether the buyers are purchasing individually, jointly or through another approved ownership structure.

It is important to return these documents promptly. Missing, expired or unclear documents can delay the bank-trust and closing process.

4. The Property Inspection Is Completed

Most Cabo purchase agreements provide the buyer with a specific period in which to inspect the property and complete other due diligence.

A professional home inspector can evaluate items such as:

Air-conditioning systems

Plumbing and water pressure

Electrical systems

Appliances

Doors and windows

Roofs and terraces

Moisture or water intrusion

Pools and equipment

General structural and maintenance concerns

No property is perfect, particularly in a coastal environment. Salt air, heat and humidity can cause faster wear on air-conditioning equipment, metal fixtures, exterior finishes and appliances.

If the inspection identifies a concern, the buyer may accept the property as it is, request a repair or credit, renegotiate when permitted by the agreement, or cancel within the applicable contingency period. The exact options depend on the terms of the signed contract.

Once the buyer is satisfied, a contingency-removal document is normally signed.

5. The Inventory Is Reviewed

Many properties in Los Cabos are sold furnished. The purchase agreement should clearly state whether the property is furnished, partially furnished or unfurnished.

A written inventory helps identify what is included in the sale. Buyers should review it carefully and confirm whether items such as artwork, outdoor furniture, electronics, linens, kitchenware, televisions and decorative pieces will remain.

If something is important to you, make sure it is listed in writing. Personal property may not be treated the same as the real estate itself, so a detailed inventory helps prevent misunderstandings before possession.

6. The Closing Team Begins Legal Due Diligence

While the buyer completes the inspection, the closing team begins reviewing the property’s legal documentation.

Depending on the transaction, this may include:

The current deed or fideicomiso

A certificate confirming whether liens or encumbrances are registered against the property

Property-tax records

HOA statements and confirmation of outstanding balances

The development’s homeowners association rules and regulations

Utility balances

Seller identification and ownership documents

Existing permits and registrations when applicable

Confirmation that the seller has the authority to transfer the property

If the property belongs to a homeowners association, the buyer is provided with a copy of the HOA rules and regulations as part of the due-diligence process. The buyer should review these documents carefully and confirm acceptance of the rules before removing the applicable contingency.

HOA documents may include information about rental restrictions, pets, parking, renovations, noise, use of common areas and other community requirements. Buyers should ask questions about any rules that could affect how they intend to use the property.

The Mexican notary plays an essential role in the legal transfer. Unlike a notary public in the United States, a Mexican Notario Público is a highly qualified attorney appointed by the government and authorized to formalize real estate transfers.

The notary verifies the legal documents, prepares or formalizes the new deed or trust rights, calculates applicable taxes and oversees the legal transfer of ownership.

7. The Fideicomiso Is Established or Transferred

Because Los Cabos is located within Mexico’s restricted coastal zone, most foreign buyers hold residential property through a bank trust called a fideicomiso.

The Mexican bank serves as trustee, while the buyer is the beneficiary and retains the right to use, improve, rent, sell or pass the property to designated substitute beneficiaries.

Depending on the property and transaction, the buyer may:

Assume the seller’s existing bank trust

Modify and transfer an existing trust

Establish a new fideicomiso

The best option depends on the existing trust, remaining term, bank fees and the recommendations of the closing team.

A residential fideicomiso is generally established for a 50-year term and can be renewed. The bank charges an annual administration fee, which varies by institution.

8. The Buyer Reviews the Estimated Closing Costs

Before closing, the buyer receives a breakdown of the anticipated closing costs.

For a typical cash purchase in Los Cabos, buyers should generally budget approximately 5% to 6% of the purchase price, although the amount can vary. Lower-priced properties may have a higher percentage because some expenses are fixed rather than based entirely on the purchase price.

Buyer closing costs may include:

Acquisition tax

Notary fees

Bank-trust setup or transfer fees

Registration fees

Appraisals and certificates

Closing coordination and legal fees

Permits and government charges

Escrow and wire fees

Prorated HOA dues and property expenses

Purchases involving cross-border mortgage financing normally have higher closing costs because of lender, appraisal and loan-document fees.

The closing team will provide an estimated statement and, later, a final closing statement showing the funds required to complete the purchase.

9. The Buyer Sends the Remaining Funds

Before the scheduled closing, the buyer wires the remaining purchase funds and closing costs into escrow.

The buyer should send the money early enough to allow for international banking delays and any intermediary-bank processing. Your closing team will confirm when the funds have arrived and whether anything else is required.

Funds are not released simply because they have arrived in escrow. They remain protected until the requirements in the escrow agreement and purchase contract have been met.

10. The Final Walk-Through Is Completed

Before possession, the buyer or the buyer’s representative should complete a final walk-through.

This is an opportunity to confirm that:

The property is in substantially the same condition as when the offer was made

Agreed-upon repairs have been completed

Included furniture and personal property remain in place

The property has not suffered new damage

Keys, remotes and access devices are available

Utilities and major systems are operating

The final walk-through is not a second inspection or an opportunity to reopen negotiations without cause. It is intended to confirm that the seller has delivered the property as agreed.

11. Soft Closing and Hard Closing

In some Los Cabos transactions, possession takes place through what is commonly called a soft closing.

At soft closing, the agreed purchase funds have been deposited and the contractual requirements for possession have been satisfied, but the final deed or bank-trust instrument may still be completing the formal signature and registration process.

Depending on the written agreement, the buyer may receive the keys and assume responsibility for expenses from the possession date. However, legal title remains with the seller until the formal transfer is completed.

The hard closing occurs when the deed or fideicomiso transfer is formally executed through the notary and the conditions for final disbursement are satisfied.

Not every transaction uses a soft closing. The possession date, release of funds and transfer of responsibility should always be clearly documented and approved by the closing professionals involved.

12. The Buyer Receives the Keys

This is the moment everyone has been waiting for.

Once the requirements for possession have been satisfied, the buyer receives the keys, remotes, access cards and any available information about utilities, the HOA and property services.

Your real estate agent can also help you with the practical details of ownership, including:

Transferring or establishing electricity service

Arranging internet and telephone service

Introducing property managers

Finding housekeeping and maintenance services

Coordinating air-conditioning service

Recommending insurance company

Registering with the HOA

Preparing the property for personal use or vacation rentals

At Cabo4Sale, our relationship with our clients does not end when the keys are delivered. Many of our buyers are purchasing their first property outside the United States or Canada, so we continue helping them settle into ownership and life in Los Cabos.

13. The Title Is Registered

After the parties sign the title documents transferring ownership through the notary’s office, the documents are sent to Catastro, the municipal property-tax authority, for registration. They are then submitted to the Public Registry of Property to record the new ownership.

This registration process may take a couple of months. Once it is complete, the new owner will receive an original registered copy of the deed or fideicomiso documents.

In the meantime, the notary can provide the buyer with a certified copy of the executed title document. The new owner can use this certified copy as proof of ownership while waiting for the original registered document.

Your closing team should follow the registration process and notify you when the original document is ready.

How Long Does It Take to Close on a Property in Cabo?

A typical cash transaction may take several weeks to a few months to complete, depending on the property’s documentation, the bank, the notary and whether a new fideicomiso is required.

A transaction may take longer when it involves:

A new bank trust

Mortgage financing

Corporate ownership

Probate or inheritance

Missing or outdated property documents

Unpaid taxes or HOA balances

Subdivision or construction documentation

Sellers or buyers signing through powers of attorney

The estimated closing date in the purchase agreement is a target based on the anticipated process. Your closing team should keep you informed if a government office, bank or document requirement affects the timing.

Can You Complete the Purchase Without Being in Cabo?

In many cases, yes. International buyers frequently complete Cabo purchases without being present for every step.

Documents may be signed electronically when permitted, while certain closing documents can require an approved power of attorney or original signatures. The closing team will explain which documents can be signed remotely and whether notarization or an apostille is necessary.

Is Buying Property in Cabo Safe?

Thousands of foreign buyers have successfully purchased property in Los Cabos through Mexico’s established deed and bank-trust systems.

The key is to work with experienced professionals, use a recognized escrow provider, complete proper legal due diligence and ensure that the transaction is formalized by a Mexican notary.

Buyers should never send money directly to an unknown party or assume that an attractive sales presentation replaces independent legal and property review.

A Good Team Makes the Difference

After your Cabo offer is accepted, several professionals work together to move the transaction from contract to ownership. Your real estate agent, escrow company, closing team, Mexican notary, bank trustee and property inspector each have a different role.

With the right team, the process should feel organized rather than overwhelming.

Michael and Sue Nicol have lived and worked in Los Cabos for nearly 30 years, and Cabo4Sale Real Estate has guided thousands of buyers and sellers through local real estate transactions. We understand that purchasing property in another country can feel unfamiliar, especially the first time.

Our job is to explain each step, help you ask the right questions and remain available before, during and after your purchase.

If you are considering buying a home or condo in Cabo San Lucas, the Tourist Corridor, San José del Cabo or the East Cape, contact Cabo4Sale Real Estate. We would be happy to answer your questions and help you understand what to expect.

The information in this article is general in nature and may vary depending on the property, contract, ownership structure and closing professionals involved. Buyers should obtain legal, tax and financial advice for their individual circumstances.

Frequently Asked Questions

What happens first after my Cabo offer is accepted?

The signed agreement is delivered to the appropriate parties, escrow is opened, the earnest-money deposit is sent and the inspection and due-diligence periods begin.

Where does my earnest money go?

The deposit is normally sent to an established third-party escrow account, where it is held according to the purchase and escrow agreements.

When do I remove the inspection contingency?

You remove it after reviewing the inspection and other agreed due-diligence items and deciding that you are satisfied with the property. Pay close attention to the deadline in your purchase agreement.

Do I own the property through a bank trust?

Most foreign buyers purchasing residential property in Los Cabos use a fideicomiso because the area is within Mexico’s restricted coastal zone. Your closing team can explain whether you will assume an existing trust or establish a new one.

When will I receive the keys?

Keys are delivered when the contractual conditions for possession have been met. This could occur at a formal closing or an agreed soft closing, depending on the transaction.

Will Cabo4Sale help after closing?

Yes. Cabo4Sale can help connect buyers with HOA representatives, utilities, internet providers, insurance professionals, property managers and local maintenance services after the purchase.