Pre-sale Condos in Los Cabos: Essential Checklist to Minimize Risks and Maximize Your Investment

Checklist for Buying a Pre-sale Apartment in Los Cabos

Buying a pre-sale apartment can be a great investment, but it also comes with risks if the proper precautions are not taken. It is crucial to evaluate every aspect of the project to minimize potential problems and ensure that your investment is safe and profitable. Below, we explain the key points you should review before committing to a pre-sale purchase in Los Cabos. Please feel free to contact us if you need further assistance.

1. Verify the Developer’s Credibility 🏷

☑ Research their track record and reputation in other projects
☑ Check if they have completed projects delivered on time
☑ Read reviews from previous buyers

2. Review Permits and Legal Aspects 📝

☑ We strongly recommend having a lawyer with the proper expertise

☑ Ensure the project has all necessary construction permits
☑ Verify that the developer owns the land (or has a legal trust in place)
☑ Check for any legal issues or disputes related to the development

3. Analyze the Purchase Agreement ✍

☑ Carefully review delivery clauses and penalties for delays
☑ Confirm what happens if the developer fails to deliver on time
☑ Check if you can recover your money in case of non-compliance
☑ Ensure that all pre-sale promises (amenities, finishes, etc.) are documented

4. Assess the Project’s Financial Stability 💰

☑ Ask how the project is being financed (own funds, pre-sales, bank credit)
☑ Verify if enough units have been sold to guarantee construction
☑ Confirm that there are no hidden additional costs at the time of delivery

5. Evaluate Location and Appreciation Potential 📍

☑ Research the area's growth and nearby projects
☑ Confirm accessibility and proximity to essential services
☑ Ask about planned infrastructure that could impact property value (roads, malls, etc.)

6. Review Management and HOA Fees 🏢

☑ Who will manage the condominium once it is delivered?
☑ How much are the estimated maintenance fees (HOA)?
☑ How will common areas and amenities be managed?

7. Protect Your Investment with an Escrow or Secure Payment 🔐

☑ Ask if it is possible to pay through an escrow account
☑ Do not make the final payment without a legal verification of ownership
☑ Ensure you receive official receipts for every payment made

8. Evaluate Architectural Design and Structural Quality 🌇

☑ Request architectural plans to review the layout
☑ Confirm the construction materials and finishes to be used
☑ Ask if the project was designed considering seismic and climate risks
☑ If possible, consult an independent architect or engineer about the project’s quality

9. Confirm Delivery Timeline and Quality Guarantee 🏡

☑ What is the realistic delivery date for the apartment?
☑ What warranty does the developer offer in case of construction defects?
☑ What happens if the delivery is delayed?

10. Insurance and Risk Protection ⚖

☑ Check if the developer offers any insurance in case of non-compliance
☑ Consider purchasing title insurance to protect against legal claims
☑ Verify if the project is insured against natural disasters, especially in a coastal area

11. Exit Clauses and Penalties 📅

☑ Ensure the contract allows cancellation with a fair penalty if problems arise
☑ Ask if you can resell the unit before delivery and whether there are restrictions
☑ Confirm what happens if the developer goes bankrupt or fails to complete the project

12. Construction Standards and Certifications 🛠

☑ Verify if the project meets international quality and sustainability standards
☑ Ask if the development has structural safety and energy efficiency certifications
☑ Ensure the construction materials are hurricane and humidity-resistant

13. Profitability and Exit Strategy 💸

☑ If purchasing for investment, research rental demand in the area and expected returns
☑ Consult real estate advisors about resale potential and expected appreciation
☑ Ask whether short-term rentals are allowed and what the condominium rules are

14. Services and Connectivity 💻

☑ Verify access to high-speed internet, as some areas in Los Cabos may have limitations
☑ Ensure the development has proper electricity and water infrastructure
☑ Check the proximity of hospitals, supermarkets, and other essential services

15. Maintenance Plan and Post-Sale Guarantee 🏡

☑ Ask whether the developer provides a post-sale warranty and for how long
☑ Research how responsive the developer is to construction issues after delivery
☑ Verify if the condominium management is already established or will be selected by owners

Investing in a pre-sale apartment in Los Cabos can be a rewarding opportunity, but success lies in thorough research and smart decision-making. Beyond legal and structural due diligence, having a financial consultant by your side is equally important. A financial expert can help you assess the long-term profitability of your investment, optimize financing options, and develop a solid exit strategy. Whether you’re buying for personal use or rental income, making informed financial decisions will safeguard your investment and maximize returns. If you need guidance, don’t hesitate to seek professional advice to ensure a smooth and profitable real estate transaction.