BUYER’S GUIDEHOW TO BUY PROPERTY IN BAJA CALIFORNIA SUR
Buying real estate in Mexico is not complicated — but it is different. The legal framework, the role of the Notario, the fideicomiso structure, and the closing process all have their own logic. At South Baja Realtors, we have guided buyers through this process since 2008. This guide explains how it works, what to expect, and what questions to ask before you commit.
STEP 1CHOOSE THE RIGHT AREA
Baja California Sur is not one market. La Paz, Todos Santos, La Ventana, El Sargento, and East Cape each have a distinct character, a different buyer profile, and a different type of inventory. Before you look at a single property, get clear on where you want to be and why. Our area guides are a good starting point:
La Paz · Todos Santos · La Ventana · El Sargento · East Cape
STEP 2WORK WITH A LICENSED, MLS-CONNECTED AGENT
In Baja California Sur, a real estate license is mandatory — not optional. Every agent at South Baja Realtors operates under this requirement. Beyond licensing, working with an MLS-connected agency means you have access to the full inventory of available properties in the region through a single point of representation. You do not need to visit five different agencies. One well-connected agent covers the market.
Your agent's job is to represent your interests — not the seller's. At South Baja Realtors, we represent buyers throughout the entire process: property search, offer, negotiation, due diligence, and closing.
STEP 3MAKE AN OFFER
Once you identify a property, your agent presents a written purchase offer to the seller. This offer outlines the proposed price, conditions, and timeline. If accepted, both parties sign a promissory contract — a formal agreement that specifies the closing date, payment terms, inclusions, exclusions, and any penalty clauses if either party withdraws.
At this stage, a deposit of 8 to 10% of the purchase price is standard as earnest money. A portion of the closing costs is also typically collected at this point.
STEP 4UNDERSTAND THE FIDEICOMISO
Foreign buyers purchasing property within 50 kilometers of the coast or 100 kilometers of the border are required by Mexican law to hold their property through a bank trust called a fideicomiso. This is not a limitation — it is a well-established legal structure that has protected foreign real estate ownership in Mexico for decades.
The fideicomiso is administered by a Mexican bank, which acts as trustee. The buyer retains all rights of use, sale, and inheritance. The trust is established during the closing process and costs approximately $2,000 USD to set up, with annual fees depending on the bank selected.
Mexican nationals and certain corporate structures may be eligible to hold property through direct deed — your agent and Notario will advise on the appropriate structure for your situation.
STEP 5DUE DILIGENCE AND LEGAL VERIFICATION
Before closing, your closing attorney verifies that the property is free of liens, back taxes, unpaid utility debts, and encumbrances. For coastal properties, this includes confirming the legal status of the coastal zone and any ejido considerations. This step is non-negotiable — it is what separates a clean transaction from a problematic one.
South Baja Realtors works with experienced closing attorneys in Baja California Sur who manage this process efficiently and transparently.
STEP 6CLOSE AT THE NOTARIO PUBLICO
The closing takes place at the office of the Notario Público — a certified attorney appointed by the State Governor with the authority to authenticate and legalize real estate transactions in Mexico. The Notario is not your attorney or the seller's attorney. The Notario is the legal authority that validates the transaction for both parties.
At closing, the remaining purchase balance and closing costs are paid. Closing costs in Baja California Sur are the responsibility of the buyer and typically include:
Acquisition tax: approximately 2–3% of the property value
Notary fees: variable, at the Notario's discretion
Property appraisal and municipal certificates
Fideicomiso setup costs (if applicable)
Closing attorney fees
The seller is responsible for capital gains tax on their end. Once all payments are confirmed, the Notario releases the new deed — the escritura — to the buyer and registers the transaction with the Registro Público de la Propiedad.
FREQUENTLY ASKED QUESTIONS
-
From accepted offer to signed deed, a typical transaction in Baja California Sur takes 4 to 8 weeks. Variables include the speed of document collection, the bank's processing time for the fideicomiso, and the Notario's schedule. Your agent coordinates all parties to keep the process moving.
-
For foreign buyers, the documentation required to purchase property in Mexico is straightforward:
Valid passport
Proof of address from your home country (utility bill or bank statement)
Tax ID number from your home country (SSN, SIN, or equivalent)
Tourist card or valid visa for Mexico
For Mexican nationals, a valid INE and RFC are the primary requirements. Your agent and closing attorney will provide a complete checklist specific to your transaction.
-
Purchasing property does not automatically grant residency. However, owning real estate in Mexico can support a residency application.
Temporary Residency (Residente Temporal): Allows stays longer than 180 days per year. Requires proof of sufficient income or assets. Renewable annually, convertible to permanent after four years.
Permanent Residency (Residente Permanente): No time restrictions on stay. Available after four years of temporary residency, or immediately for those who qualify by income or investment thresholds.
A tourist visa (FMM) allows stays of up to 180 days and is sufficient for many part-time residents who split their time between Mexico and their home country. Immigration requirements change — we recommend consulting a licensed immigration attorney for current thresholds and procedures.