Buying in Pedregal de Cabo San Lucas is exciting, but the closing line items can feel unclear if you are coming from the U.S. or Canada. You want a sharp, no-drama path to the keys, with realistic numbers and a clear process. In this guide, you will learn what buyer closing costs usually include in Pedregal, how much to budget, who pays what, and how the timeline works. You will also get a practical checklist to help you confirm fees before you wire funds. Let’s dive in.
What buyers pay in Pedregal
Pedregal sits in Mexico’s coastal restricted zone, so most foreign buyers use a bank trust called a fideicomiso. Your closing costs typically include the trust setup, transfer taxes, Notario fees, registry costs, and optional title services.
In Mexico, the buyer generally covers these items, while the seller usually pays the real estate commission and their own taxes. You can negotiate details, but planning ahead helps you avoid surprises.
The big-picture range
Buyer closing costs here are usually a few percent of the purchase price plus some fixed fees. The exact percentage depends on the state transfer tax, the Notario’s fee structure, and whether you choose title insurance. Always get written quotes from a local Notario, the bank handling your trust, and any escrow or title insurer you plan to use.
Who usually pays what
- Buyer typically pays: acquisition or transfer tax, Notario professional fee and registry costs, fideicomiso setup and first-year admin, escrow and title fees if used, inspections and surveys, banking and wire fees, and any translations or legal review.
- Seller typically pays: the real estate commission and the seller’s capital gains taxes. This is common practice but can be negotiated.
- Areas you can negotiate: some fixed fees or a split of certain costs, depending on the deal.
Fideicomiso basics
A fideicomiso is a bank trust used by non-Mexican individuals to buy in the restricted zone. The bank holds legal title for you while you keep full beneficial rights, including the right to sell, lease, finance, or pass the property to heirs.
Setup and annual fees
Banks charge an initial opening fee and an annual administration fee. These are usually fixed amounts. Many buyers also see a one-time fee when the trust is transferred or when a new beneficiary is recorded. The total varies by bank and by the complexity of the deal. Expect setup and the first-year fee to add several thousand dollars to your closing, then a recurring annual fee in the low hundreds to low thousands.
Timeline and alternatives
The bank will verify your identity and handle compliance, which can take several weeks. This is integrated into the closing timeline. Some buyers consider forming a Mexican corporation instead, which has different costs and tax implications and is often used for investment or business purposes. Speak with your Notario or attorney to decide which path fits your plans.
Notario role and fees
The Notario Público is central to closing in Mexico. This is a highly trained legal professional who prepares the public deed, verifies the seller’s capacity to sell, confirms there are no liens, calculates and pays taxes and fees at closing, and coordinates registration.
What the Notario does for you
- Prepares the escritura pública, your deed.
- Confirms title is clean and the seller can convey ownership.
- Orders or verifies certificates for taxes, utilities, and liens.
- Calculates transfer taxes and official fees.
- Coordinates the closing appointment and registration with the Public Registry of Property.
Fee structure and registry costs
Notario fees often combine a professional fee that may be a percentage or a graduated scale based on value, plus official registry fees and certifications. The amounts vary by Notario and by state. In Pedregal, complexity can be higher due to lot configuration, easements, or coastal elements, which can increase the work required. Ask for a written fee schedule early.
Acquisition or transfer tax
Baja California Sur sets its own acquisition or transfer tax rate, and the exact calculation basis can change. The buyer typically pays this tax in Los Cabos. The tax is usually a low single-digit percentage of the sale price or assessed value used for taxes.
What to confirm locally
Ask your Notario or the Baja California Sur tax office for the current rate and how it is applied to your purchase. This is often the single largest line item in buyer closing costs, so get it in writing as part of your pre-closing statement.
Escrow, title services, and title insurance
Many international buyers use an escrow agent or title company to hold funds and coordinate closing. Escrow fees vary by provider and by the scope of work.
Title insurance is available from carriers that operate in Mexico. Buyers often choose a policy for higher-value homes or when the transaction has added complexity. Policies are commonly quoted as a fraction of a percent to around 1 percent of the purchase price, depending on the insurer and coverage. These costs are usually paid by the buyer, but you can negotiate.
Incidental and transactional costs
Plan for smaller items that add up. These commonly include:
- Predial (property tax) prorations. Rates are generally low. You will either reimburse the seller for prepaid amounts or pay your portion at closing.
- Municipal and utility certificates. These verify no delinquencies on water or utilities. They are minor fees handled through the Notario.
- Appraisals, inspections, and surveys. Often the buyer’s responsibility. Inspections can range from a few hundred dollars upward depending on scope and property size.
- Banking and wire fees. International wires can include bank charges and compliance costs. Confirm timing and cutoffs with your bank.
- Translator or legal review. If you are not fluent in Spanish, budget for translation of documents or bilingual legal support.
Sample closing budgets
The following examples are illustrative only. They help you see how items fit together. Always request written quotes from the Notario, the bank for your fideicomiso, and any escrow or title provider.
Example A: 300,000 dollar purchase (foreign buyer)
- Acquisition tax: for illustration, if the rate were 3 percent, that would be 9,000 dollars. Confirm the actual Baja California Sur rate and calculation with your Notario.
- Notario and registration: low thousands, for example 2,000 to 6,000 dollars depending on fee structure and complexity.
- Fideicomiso setup and first-year administration: several thousand dollars depending on the bank.
- Title insurance and escrow: a few hundred to a few thousand dollars based on the policy and escrow provider.
- Incidentals: certificates, appraisal, inspections, wiring, translation. Several hundred to low thousands.
- Approximate result: many buyers see a total in the low to mid single-digit percentage of the purchase price when you add these items together. Your exact percentage depends on the tax rate and vendor quotes.
Example B: 800,000 dollar purchase
- The same cost categories apply. Percentage-based items, like acquisition tax and any percentage-based Notario fee, scale with price.
- Fixed items, like the trust setup, do not scale in the same way, so their share of the total is smaller at higher prices.
- Expect a higher absolute closing cost number, with a similar overall mix of line items.
Process and timeline in Pedregal
Plan for a 4 to 8 week path from offer to deed signing. The pace depends on due diligence, bank trust setup, and document readiness.
- Reservation deposit and accepted offer. You sign a reservation or a private agreement with terms and a small deposit.
- Due diligence. Title search, public registry review, inspections, certificates, and verification of seller identity and authority.
- Choose your closing structure. Fideicomiso or Mexican corporation. Coordinate with your bank or attorney.
- Escrow and title. If desired, secure an escrow agent and ask for policy and fee schedules in writing.
- Closing funds and signing. The Notario prepares the escritura. You sign at the Notario’s office and funds are disbursed per instruction.
- Registration. The Notario files your deed at the Public Registry of Property. You receive the issued escritura as the beneficiary of the trust.
Some steps can be handled remotely, but identity verification is strict. A power of attorney is possible if prepared correctly and accepted by the bank and Notario.
Due diligence checklist for Pedregal buyers
Use this list to reduce risk and keep your timeline on track:
- Verify seller identity and any power of attorney.
- Obtain a certificate of no liens from the Public Registry of Property.
- Get current predial receipts and municipal payment certificates.
- Request utility and water clearances.
- Confirm building permits and use permits.
- Verify boundaries and any encroachments with a survey. Pedregal lots can involve cliffs and easements, so spend extra time here.
- Review coastal zone limitations and any rights of way.
- Request the current escritura and documents for prior sales or liens.
- Ask for written fee quotes from the Notario, bank, escrow or title insurer, appraiser, and your lawyer.
What to ask at your first Notario or bank meeting
Arrive with a short list so you can lock in numbers and timing:
- What is your Notario fee structure for this transaction value?
- What is the current Baja California Sur acquisition or transfer tax rate and how is it calculated?
- What are the fideicomiso setup fees, transfer fees, and annual administration fees for my bank?
- Do you recommend title insurance for this property and what would the policy cost?
- What official registry and certification fees should I expect on top of your professional fee?
- What documents do you need from me to keep the timeline on track?
Your next steps
Buying in Pedregal should feel exciting, not confusing. With the right plan, you can confirm costs early, streamline the bank trust, and reach closing on schedule. If you want help coordinating the Notario, bank trust, escrow, inspections, and registration, connect with a local advisor who does this every week.
If you are ready to review numbers for a specific Pedregal home, reach out to Cory Baglien for a tailored closing cost preview and an efficient plan from offer to keys.
FAQs
Do I need a fideicomiso to buy in Pedregal?
- If you are a non-Mexican individual purchasing in the coastal restricted zone, you will typically use a bank trust. A Mexican corporation is an alternative with different costs and tax implications.
How much should I budget beyond the price in Pedregal?
- Plan for acquisition tax, Notario and registry fees, fideicomiso setup and the first-year fee, optional title insurance and escrow, and incidentals. Many buyers see a low to mid single-digit percentage of the price, but you should confirm exact numbers in writing.
Who pays the transfer tax in Los Cabos?
- The buyer typically pays it, although parties can negotiate. The exact rate and calculation in Baja California Sur should be confirmed with a local Notario.
Can I close remotely when buying in Pedregal?
- Some steps can be handled from abroad, but the escritura signing usually happens at the Notario’s office. A properly prepared power of attorney may be accepted after bank and Notario review.
Who prepares the deed in Mexico?
- The Notario prepares the escritura, coordinates tax payments and registration, and issues the deed after it is recorded.
