Real Estate Properties in Cabo San Lucas

Cabo San Lucas vacation property has proven itself to be an excellent investment for most buyers. Not too long ago, property in this beautiful coastal destination area was unable to be purchased by foreign investors. In an effort to increase foreign investment ensued, and the Mexican government began issuing “Fideicomisos”, or Mexican Property Trusts, which provide irrevocable and absolute ownership rights to foreigners. These trusts ensure that outsiders can legally own land in formerly restricted zones, including the beautiful beachfront areas of Cabo San Lucas, by securing the title though the Mexican banks. This policy was established and sanctioned by the Mexican government in 1993 as part of the pre-NAFTA agreement, and was added as the 27th Amendment to the constitution.

This “Fideicomiso” is a trust agreement, much like an estate trust in the U.S., which gives the Purchaser all of the rights of ownership. Essentially, the bank acts as the “Trustee” for the trust and the Purchaser is the “Beneficiary” of the trust. The trust is not an asset of the bank; the banks simply act as the Trustee to hold the trust. The same title insurance you may have purchased on your US home is now available for Mexican real estate. Two of the largest title insurance agencies, First American and Stewart Title, now offer affordable insurance for your vacation property. The range and availability of new insurance options is sure to calm any of your potential concerns regarding “Fideicomiso” trusts in Mexico.

Prospective buyers outside of Mexico's borders seeking to buy property can now enjoy greater legal freedom and ownership rights as mandated and protected under Mexico's new foreign investment law. In Mexico, as in the U.S., federal, state, and local laws administer the transfer of real estate property rights. Foreign nationals wishing to acquire property are subject to permission and registration with Mexico's Department of Foreign Affairs. This federal level agency is responsible for awarding the lawfully required permits and authorizations to purchase land in the Mexican Republic, as well as to acquire real estate properties or rights thereto

These liberalized foreign investment policies have eliminated past concerns about owning property in Mexico.