What is the Condo Regime in Cabo Real Estate?

Condo Regimes and Delivery Delays

One of the most common issues buyers encounter in pre-construction purchases in Mexico is the delay caused by the condominium regime (régimen en condominio). Even when the building is physically complete and buyers are ready for delivery, closings can stall if the regime is not yet formalized.

Why the Regime Matters: A condo regime is the legal structure that defines individual ownership rights within a development. Developers can only obtain the regime once construction is at least 80% complete. This requirement often creates a bottleneck because the process of registering the regime with the Public Registry can be lengthy. Delays are compounded when there are strikes, backlogs, or administrative issues at the registry.

Some developers try to solve this problem by doing a “soft closing” or granting early possession. This allows buyers to move in, start enjoying their condo, or begin renting it out, while the developer continues working on the final legal steps. However, it’s important to understand that a master regime alone is not enough—each tower or phase of the project can have its own sub-regime.

Red Flags for Buyers

For first-time buyers, the biggest red flag is not after construction is complete, but before. If the building is finished, the condo regime is usually just a matter of time and paperwork, even if there are mistakes to fix. The real risks lie earlier, when:

• The developer has no proven track record.
• The company does not own the land outright or there are liens on the property.
• The land is still Ejido land that has not been properly disincorporated into private property.
• These are the situations where buyers risk losing money or facing legal complications.

Advice for Realtors and Investors

Before advising clients to buy into a project, conduct due diligence on:

• The developer’s track record and completed projects.
• The financial strength of the partners behind the company.
• Whether the land title is clean, free of liens, and no longer Ejido.

Even in resales (not just new developments), a proper due diligence should always be performed. Many issues arise simply because buyers or agents did not confirm key facts about the property before entering into a transaction.

Mariana Plowes – Attorney in Cabo - mph@bajalegalgroup.com