Complete Closing Process in Baja California Sur: A Guide for Buyers and Sellers
Buying or selling property in Baja California Sur is a thrilling milestone — kind of like discovering your new favorite beach spot. But if you’re not familiar with Mexico’s real estate closing process, it can quickly feel a bit confusing (and maybe even a little intimidating). After guiding many clients through successful closings in Todos Santos, El Pescadero, Cerritos, and Los Cabos, I’ve learned that clear, straightforward guidance makes all the difference. This post breaks down the entire process step-by-step for both buyers and sellers, so you’ll know exactly what to expect and feel confident every step of the way.
1. How Long Does Closing Take in Baja California Sur?
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Typical timeline: 45–90 business days (or longer in many cases, patience is key)
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Cash purchases: In most cases will always be faster than financed transactions
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Delays: Can occur around holidays, document corrections, or bank trust (fideicomiso) processing
2. Step-by-Step Closing Process for Buyers
a. Making an Offer & Initial Agreements
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Negotiate and sign the offer to purchase (including any counter-offers)
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Decide on fideicomiso structure: assume seller’s, create new, or none needed
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Open escrow account and wire earnest deposit (typically 5–10%)
b. Collecting Buyer Documentation
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Passport, driver’s license, visa (if applicable)
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Marital status, address, contact info, and occupation
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Utility bill (dated within 60 days)
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Power of Attorney (POA), if you won’t be present at closing (requires notarization and apostille)
c. Legal & Financial Review
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Due diligence on title, no-lien certificate, property taxes, HOA if applicable
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Escrow agreement signed and finalized
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Buyer pays all estimated closing costs before closing day
d. Trusted Escrow Services with Global Escrow Solutions
One of the most important parts of buying property in Baja California Sur is ensuring your funds are secure and the transaction is handled professionally. That’s why we work exclusively with Global Escrow Solutions, a reputable escrow company specializing in cross-border real estate transactions.
Global Escrow Solutions acts as a neutral third party, holding your deposit and purchase funds safely until all closing conditions are met. This protects both buyers and sellers and helps facilitate a smooth and transparent closing process—whether you’re paying cash or using financing.
Partnering with Global Escrow Solutions provides peace of mind, knowing your money is managed according to Mexican regulations by a team experienced in Baja California Sur real estate closings.
e. Property Appraisal (Avaluo)
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An official property appraisal, or avaluo, is required by Mexican law for all transactions—cash or financed.
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The appraisal sets the legal value used for taxes and fideicomiso procedures.
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Typically ordered by the notary or fiduciary bank to protect the buyer.
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The appraisal fee is included in buyer closing costs.
f. Estimated Buyer Closing Costs in Baja California Sur
Closing costs can vary depending on property value, location, and whether a fideicomiso is required. On average, buyers should budget 3%–7% of the purchase price. These may include:
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Notary fees
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Transfer tax (2% of the assessed value)
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Escrow fees
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Fideicomiso setup or transfer fees (if applicable)
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Appraisal and legal translation fees
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Title search and due diligence
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Bank fees (if a trust is involved)
Note: ALWAYS ask for a closing cost estimate up front before making an offer. Cash purchases tend to have fewer fees and a faster timeline than purchases involving financing.
g. Cross-Border Financing Options
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Financing real estate in Mexico can be challenging for foreign buyers.
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Many buyers arrange financing through U.S. or Canadian lenders or pay cash.
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Trusted lenders offering cross-border mortgage options include:
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Discuss financing plans early with your agent and legal advisor to avoid delays.
🏡 Do Buyers Pay Real Estate Commission?
In most cases, no—the seller pays both agents’ commissions in Baja California Sur. As a buyer, your agent’s guidance and representation come at no direct cost to you.
3. Seller Responsibilities Before Closing
a. Documentation & Compliance
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Provide copy of fideicomiso or title deed
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Confirm property taxes are fully paid
- If new construction Constancia de Terminación de Obra. This is the final certificate you get after construction is finished and approved.
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Submit “Manifestación de Construcción” (Construction Manifestation) if improvements were made.
- Deliver no-lien certificate and proof of no debts
b. Tax Obligations
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Obtain preliminary and final capital gains tax (ISR) estimate
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Pay any fideicomiso cancellation fees, if applicable
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Ensure fideicomiso annual fees are current
c. Legal Representation
💼 Real Estate Commission in Baja
In Baja California Sur, the seller typically pays the real estate commission, which is usually 6–10% of the sales price, depending on the property type, location, and brokerage. This fee is shared between the listing agent and the buyer’s agent unless otherwise agreed.
Commission is usually outlined in your listing agreement and paid at closing from the proceeds of the sale.
4. Final Steps Before Closing
a. Notary Coordination
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Notary drafts final deed and sends to bank (if fideicomiso involved)
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Preventive notices are filed to block duplicate filings
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Facturas (legal invoices) are prepared for both parties
b. Disbursement & Signing
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Final closing costs calculated and disbursed
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Escrow agent prepares payment instructions
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Deed is signed in presence of notary (or via POA)
5. After the Closing
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Notary records deed with the Public Registry and Cadastre office
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Transfer taxes and recordation fees are paid
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Buyer receives original deed with all legal stamps and invoices
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Any leftover funds are returned to the parties
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Optional: buyer obtains title insurance (recommended for peace of mind)
6. Typical Closing Costs in Baja California Sur
Buyer
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Notary, fideicomiso setup, escrow, bank fees, and transfer tax
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Estimated total: 5–8% of purchase price
Seller
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Capital gains tax (ISR), fideicomiso cancellation, notary & legal fees, and commission
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Varies based on gain, ownership structure, and property value
7. Common Questions About Closing in Baja
Do I need a fideicomiso to buy in Mexico?
Yes—if you’re a foreign buyer purchasing within 50 km of the coast or 100 km from the border. It’s a bank trust that holds title on your behalf.
Can I buy or sell from abroad?
Absolutely! You can close remotely using a Power of Attorney, as long as it’s properly notarized and apostilled.
Who pays for what in the closing?
Buyers typically cover most of the transaction costs. Sellers cover ISR (capital gains tax), any outstanding property taxes, commission, and fideicomiso cancellation if applicable.
8. Pro Tips for a Smooth Closing
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Communicate often with your agent, notary, and closing attorney
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Wire funds early to avoid delays (especially international transfers)
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Plan ahead for holiday schedules and banking timelines
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Choose a reputable escrow agent and fiduciary bank (like Global Escrow Solutions)
9. Why Work With Me?
I’ve walked through this process personally and professionally—from buying raw land and building in El Pescadero to helping clients relocate full-time or invest in a second home or vacation rental. I offer first hand experience, trusted legal partners, and support every step of the way.
Whether you're buying your dream beach house or selling your investment property, I’ll make sure you feel confident, informed, and supported.
Ready to get started? Contact me for a free consultation or request my Closing Checklist PDF.
Jimela Bewley | SellingBaja.com | Baja Real Estate Made Simple
****This blog post is for informational purposes only and does not constitute legal or financial advice.
