PURCHASE OF REAL ESTATE IN LOS CABOS
If you are thinking of acquiring real estate in Los Cabos, the legal firm of Mowat – Larios can provide you with a practical guide that will help you proceed without setbacks and with the certainty of acquiring a property and not a problem.
First of all, it is important to understand that the Mexican Constitution forbids foreigners to acquire direct ownership in real estate located within the restricted area. The restricted area consists of property within 100 kilometers, or 62 miles, of international borders and within 50 kilometers, or 31 miles, from coastlines. However, Mexico’s Foreign Investment Law allows companies to invest their own capital to acquire up to 100 percent ownership of real estate within said area, provided that it is not for residential purposes and the Ministry of Foreign Affairs is notified. Foreign individuals or entities may acquire properties within the restricted area through a trust.
Prior to the execution of any contract for the purchase of real estate, it is important to observe the following.
- When meeting with the Notary Public, the purchaser shall pay the real estate excise tax, and usually, all expenses and fees correspondent to the verification of the contract.
- When those steps have been taken, the execution of the definitive purchase contract is complete.
- As required by law, the Notary Public shall make sure no liens or outstanding debts exist, and obtain a commercial appraisal of the real estate.
- Once the above mentioned is complete, a private purchase contract may be executed. The contract must be notarized by a licensed Public Notary.
- If the owner is married, request a marriage certificate in order to satisfy any marital rules and regulations.
- In the case of a residential lot, visually inspect the real estate in order to confirm it is in fact unoccupied and that there are no other owners in addition to the seller.
- Ensure that the real estate is private property and no ejido rights exist, or that is not totally or partially located in a maritime or terrestrial federal zone that requires a concession.
- Obtain a valid certificate of no lien.
- Obtain a folio of background information from the Public Registry of Property where the real estate is registered. The folio will contain the history of the real estate, including different owners and the various transactions corresponding to the property.
- The final step is registering the deed with the Public Registry of Property.
Once the above procedure is complete, you may enjoy your new property without legal or tax contingencies. In addition to real estate, the attorneys at Mowat – Larios are ready to answer all your questions and provide counseling on social security, immigration, corporate issues, patents and trademarks.
Plaza Peninsula Local 5-B
Carr. Transpeninsular KM 29.5 S/N
Col. La Joya de Los Cabos
San Jose del Cabo, B.C.S. 23405
Lic. Hector Segovia-Tavera
- (624) 172-6208
- (55) 4342-9959