Step-by-Step Guide: How Americans Buy Land in San Felipe, Baja California

If you’re an American retiree or snowbird dreaming of a place by the Sea of Cortez, San Felipe can feel almost too good to be true: warm winters, slower pace, and land prices that still make sense compared to California or Arizona.

But the moment you start researching how to buy land in San Felipe, you’ll run into words like restricted zone, fideicomiso and Notario Público. It can feel intimidating—especially if your life savings are involved.

This guide walks you through the process step by step, in plain English, so you understand how the legal structure works, who you need on your team, and what to expect from your first visit to closing day.

Note: This article is for educational purposes only and is not legal advice. Always work with a qualified Mexican attorney and notary.

1. Understand the Basics: How Foreigners Own Land in San Felipe

San Felipe sits on the coast of Baja California, which means it’s inside Mexico’s “restricted zone”—an area within 50 km (about 31 miles) of the coast or 100 km of an international border where foreigners cannot hold direct titles in their own name.

That doesn’t mean you can’t own property. Instead, you buy through a bank trust called a fideicomiso:

• A Mexican bank holds the title as trustee.
  
• You (the foreigner) are the beneficiary of the trust.
  
• You have full rights to use, improve, sell, will or transfer the property, similar to fee simple ownership in the U.S.
  
• The trust is usually valid for 50 years and renewable.
  

For most Americans buying residential land or a future retirement home in San Felipe, a fideicomiso is the standard route. Alternative structures like Mexican corporations are usually reserved for more complex, commercial or multiple-property investments.

The big takeaway: Yes, you can own land legally and safely as an American in San Felipe—you just do it through a structure designed for foreigners in coastal zones.

2. Make Sure San Felipe Is the Right Fit

Before you dive into contracts, spend time confirming that San Felipe’s lifestyle matches your expectations:

• It’s quieter and less developed than Rosarito or Cabo.
  
• The desert–sea landscape is beautiful, but it’s still desert: hot summers, cooler winter nights.
  
• Services (shopping, healthcare, restaurants) are concentrated in towns and nearby cities like Mexicali.
  

Many seasoned Baja buyers recommend you visit at least once (ideally a few days), drive around, and walk the beach and neighborhoods you’re considering. Some even suggest renting for a season before buying, especially if you’ve never lived outside the U.S.

While you’re there, schedule a property tour with a reputable developer or real estate company so you can see actual lots, understand distances (to town, hospitals, the malecón) and get a feel for the community.

3. Build Your Team: Developer, Independent Attorney & Notario

Buying land in another country is not a DIY project. You’ll want three key players:

a) Reputable Developer or Real Estate Agency

Choose a developer or brokerage with:

• A clear track record in San Felipe
  
• Completed projects you can physically visit
  
• Transparent pricing and written terms
  

Ask for references from existing buyers and look for documented processes on how they handle Americans purchasing land.

b) Independent Mexican Real Estate Attorney

Even if the developer has their own lawyer, it’s wise to hire your own independent attorney to represent your interests only. A good attorney will:

• Review or draft purchase agreements
  
• Verify the legal status of the land (private vs. ejido)
  
• Confirm that the seller actually holds clear title
  
• Coordinate with the bank and Notario Público
  

c) Notario Público

A Notario Público in Mexico is not the same as a U.S. notary. They are highly trained attorneys appointed by the state with authority to:

• Verify legal ownership and property history
  
• Oversee the transaction and calculate taxes
  
• Draft and record the trust deed or title with the Public Registry
  

Your notary is one of your best safeguards. Do not skip this step or try to “close privately” to save money.

4. Choose Your Lot and Secure a Reservation

Once you’ve confirmed that San Felipe feels right and you have your team in place, you move into the property selection phase.

Typical steps:

1. Tour the development and lots
   Walk the land. Check slopes, views, distance to the beach, road access, neighbor homes, and where future amenities will be.
   
2. Request a full information packet
   This should include a lot plan, development master plan, sample contract, HOA or community rules, and any architectural guidelines.
   
3. Make a written offer or reservation
   Many developers will use a reservation agreement with a small deposit to hold your lot while contracts and due diligence move forward.
   
4. Have your attorney review everything
   Before you sign anything or wire money, your attorney should confirm that:
   
   • The land is private property (not ejido).
     
   • The seller actually owns the land and has the right to sell.
     
   • There are no liens or hidden encumbrances.
     

This is the moment to ask questions about infrastructure (water, power, roads, septic) and realistic timelines for installation if the community is still under development.

5. Set Up Your Fideicomiso (Bank Trust)

With your lot selected and paperwork verified, you’ll move into the trust setup and permit stage.

Key points:

• Your attorney or notary will request permission from Mexico’s Ministry of Foreign Affairs (SRE) to acquire rights in the restricted zone.
  
• A Mexican bank is chosen as the trustee (often a large national bank with a long history of handling fideicomisos).
  
• The bank prepares the trust document naming you (and any co-buyers or heirs) as beneficiaries.
  

You’ll typically pay:

• An initial setup fee for the fideicomiso
  
• An annual maintenance fee, usually a few hundred dollars, billed by the bank
  

Most retirees keep things simple and purchase in their personal names as beneficiaries. More complex structures (like LLCs or corporations) can be explored with your lawyer if you plan to build multiple rentals or operate a business. 

6. Signing, Payment and Closing Timeline

Once the trust is approved and all documents are prepared, the closing happens at the notary’s office.

What you’ll typically need

• Valid U.S. passport
  
• Basic personal information forms
  
• Sometimes a Mexican tax ID (RFC) and/or residency status; in many cases, your professionals help obtain what’s needed for the transaction.
  

What happens at closing

1. The notary reads and explains the trust deed / purchase contract in Spanish (with translation if needed).
   
2. You sign the documents; the bank, seller and any co-buyers also sign where required.
   
3. You pay the balance of the purchase price and all closing costs (notary fees, registration fees, some taxes, trust setup).
   
4. The notary registers the trust with the Public Registry to make your ownership official.
   

In San Felipe and similar Baja communities, the overall process—from accepted offer to receiving your recorded trust—can take 60 days to several months, depending on how quickly documents and permits are processed. 

7. After Closing: What to Expect as a New Landowner

Once your fideicomiso is registered, you’re officially the beneficiary owner of your San Felipe lot. A few ongoing responsibilities:

• Annual fideicomiso fee to the bank
  
• Property taxes, which are generally much lower than in most U.S. states
  
• Any community/HOA fees for maintenance, security or amenities
  
• If you build, permits and inspections managed with your architect/contractor and municipality
  

This is also the right time to discuss with your attorney and financial advisor how the property fits into your estate planning—for example, naming heirs in the trust so it passes smoothly.

8. Common Mistakes Americans Make (And How to Avoid Them)

Even smart buyers can run into problems if they rush. Watch out for:

• Skipping independent legal counsel
  Relying only on the developer’s attorney can lead to conflicts of interest.
  
• Not verifying land status (ejido vs private)
  If land is still ejido and not fully privatized, foreigners cannot legally buy it through a trust.
  
• Sending money before contracts and due diligence are complete
  Always know exactly what you’re signing and what you’re paying for.
  
• Underestimating closing costs and trust fees
  They’re not extreme, but you should budget for them alongside the purchase price.
  
• Buying without visiting
  Photos rarely show slope, road conditions, neighboring uses, or future development plans as clearly as a personal visit.
  

If you take your time, build the right team, and follow the formal process, buying land in San Felipe can be a secure and life-changing decision for your retirement or snowbird lifestyle.

Soft Next Step

If you’re seriously considering San Felipe, your next move isn’t to sign a contract—it’s to ask questions and see the land with your own eyes.

Look for a development that:

• Offers clear, written buying steps for Americans
  
• Works with reputable notaries and banks
  
• Helps you feel informed rather than pressured
  

From there, the process of how to buy land in San Felipe becomes far less mysterious—and a lot more exciting.