The laws regarding property ownership of Cabo San Lucas Mexico real estate have changed considerably in recent years for non-Mexican citizens. Significant changes in Mexican politics have made purchasing property in Mexico a much easier and more secure process, especially for residents of the United States and Canada.

• Q: Can foreigners own property in Mexico?
• A: The Mexican Constitution prohibits direct ownership of real estate by foreigners in the "restricted zone". The restricted zone encompasses all land located within 100 kilometers (approximately 62 miles) of any Mexican border, and within 50 kilometers (approximately 31 miles) of any Mexican coastline. However, in order to permit foreign investment in these areas, the Mexican government created the fideicomiso, which is, roughly translated, a real estate trust.
• Q: What is the fideicomiso?
• A: A fideicomiso (fee-dee-co-MEE-so) is a trust agreement created for the benefit of a foreign buyer, executed between a Mexican bank and the seller of property. The bank acts on behalf of the foreign buyer, holding title to real property. The bank, as trustee, buys the property for the buyer, then has a fiduciary obligation to follow instructions given by the buyer who is the trust beneficiary.
• Q: What ownership rights do I have?
• A: In Mexico, a foreigner or foreign corporation obtains all the rights of ownership (meaning you can sell, lease, use, bequeath, improve, transfer and encumber the property) through the fideicomiso. The fideicomiso gives you the very same rights of ownership enjoyed by Mexican citizens. The only difference is that the actual title is held in trust for you by a trustee, which is typically a bank.
• Q: Is there a time limit associated with the trust?
• A: The trust lasts 50 years and is perpetually renewable. They are generally renewable at any time or at the end of the 50-year period for a relatively small fee (less than $1,000 US) for additional 50-year periods.
• Q: Can I secure title insurance?
• A: To ensure the security of your purchase of Cabo San Lucas Mexico real estate at Olamar, we have created an association with Stewart Title International, an American-based company. This respected company with more than a decade of experience in Mexico property offers title insurance for every property at Olamar.
• Q: Can I finance the purchase of my Olamar property?
• A: Yes, although financing is a relatively new concept in Mexico. It is recommended that you get pre-approved, just as you would in the U.S. or Canada.

Closing costs in Mexico are approximately two to four times higher than in the U.S. or Canada. Closing typically takes 30 to 90 days depending on financing requirements and contingencies. Your Olamar sales representative will be happy to explain your options should you choose to finance your purchase.