Welcome to the latest episode of Nick Fong‘s Q and A. As part of this video series, Nick Fong, the founder and broker of Ronival Real Estate presents how long it takes to purchase a property in the real estate market of Baja California Sur. Being a leader in both real estate and property management in Cabo and all of Baja California Sur, Nick Fong truly understands the market.
To answer the simple question of how long it takes, Nick states that it takes 60 to 90 days to close a sale in Baja Sur. If you’re a foreigner, like from the United States, Canada, or any other country, it takes a little longer for two reasons. To begin, you need to set up a fideicomiso or Mexican corporation. Now, read more to learn the details.
Mexican bank trust – fideicomiso
Article 27 of the Mexican Constitution requires that foreigners purchasing residential property in the restricted zone must obtain property rights through a Mexican bank trust, known as a fideicomiso. This zone is 50km (31 miles) from the coastlines and 100km (62 miles) from the border. And, this type of bank trust is good for 50 years and is renewable thereafter by you or your heirs.
The average cost is about $2000 USD to set up, and about $500 USD per year to maintain. The cost does NOT vary based on the amount of the purchase of your Baja Sur real estate.
Requirements to buy Cabo San Lucas real estate
There are just a few requirements to follow when you purchase Baja Sur real estate. And, it isn’t complicated. Your Ronival real-estate agent in Baja Sur will help you through the entire process. So, don’t be vexed! Your attention should lie in finding the right Baja Sur real estate that fits all your needs and desires.
The requirements list:
- Provide your Passport from the country that you come from.
- Attain a Mexican Tourist Visa (min. requirement) or a Temporary Residency Visa.
- Purchase a fideicomiso, which is a bank trust, held by a Mexican bank in your name.
A Mexican bank will then hold the trust deed for you. And, you’ll become the beneficiary and retain full ownership of that Cabo San Lucas real estate.
That’s all there is to it!
Mexican Temporary Residency Visa
You may purchase real estate in Mexico with a Mexican Tourist Visa, which is obtained at the airport when you enter Mexico. But, if you plan to stay in Mexico, it’s a good idea to obtain a Mexican Temporary Residency Visa.
Here’s the lowdown…
Foreigners who intend to stay in Mexico for more than 180 days must attain their Temporary Residence Visa. First, you must prove your income and show that you can support yourself while living in Mexico. Of course, if you’re an investor, or you already own real estate in Mexico, you probably already qualify for a Temporary Residency Visa.
The Temporary Resident Visa will only be granted for one year when you first obtain it. Then, after the first year, temporary residents may apply for one, two, or three years renewal of their temporary resident card.
Work With Ronival Real Estate
Ronival Real Estate has helped thousands of buyers and sellers across Los Cabos since 2010. If you’re interested in Cabo Real Estate, our team can assist with everything from showings and negotiations to closing and property management. Have questions? Contact us here or call +52 (624) 227 5766.