Buying Pre-Sale Direct from a Developer in Los Cabos: The Complete Playbook

Buying pre-sale from a developer in Los Cabos can save you 15 to 25 percent versus resale — and I have seen early buyers in Quivira and Rancho San Lucas realize 30-plus percent appreciation by delivery. But the process is fundamentally different from buying resale, and the risks are real.

Why Buy Pre-Sale?

The math is straightforward. Developers need capital to build, and they are willing to sell units at below-market prices to fund construction. You are essentially providing construction financing in exchange for a discount.

Here is a real example: a two-bedroom unit at a Quivira tower sold pre-sale in Phase 1 for $380,000. By the time the building was delivered 24 months later, comparable completed units were listing at $520,000. That is a 37 percent return on a phased investment — not on the full $380,000 at once, but on incremental payments over two years.

The other advantage is customization. Pre-sale buyers can often select finishes, floor plans, and sometimes even make layout modifications. Once a unit is delivered, changes cost two to three times more.

How Pre-Sale Payment Structures Work

Los Cabos developers typically use one of these payment models:

The 30/30/40 Model

The most common structure:

• 30% at contract signing — this is your commitment deposit and it triggers the developer to allocate your unit
• 30% during construction — usually split into two or three milestone payments (foundation complete, structure complete, finishes started)
• 40% at delivery — the final payment when you take possession and the deed is transferred

On a $500,000 pre-sale unit, that means $150,000 up front, $150,000 spread over 12 to 18 months, and $200,000 at delivery. Some buyers use the construction period to save or arrange the final payment.

The 50/50 Model

Some luxury developers — especially those building custom villas — use a simpler structure: 50 percent at signing, 50 percent at delivery. This is more common for higher-priced units ($1 million and above) where the developer has sufficient capital from other sources.

Launch Incentive Structures

During launch events, developers sometimes offer enhanced terms: reduced deposits (10 to 20 percent instead of 30), longer payment timelines, or included upgrades (premium finishes, furniture packages, appliance packages). These are worth pursuing if you can attend a launch event in person — Rancho San Lucas and Cabo del Sol both run launch events for new phases.

The Purchase Agreement: What to Look For

This is where an independent attorney earns their fee. Never sign a pre-sale contract reviewed only by the developer's legal team. Here is what your attorney should verify:

• Delivery date with penalty clause: The contract should specify a delivery date and what happens if the developer misses it — either a financial penalty (typically 0.1 to 0.5 percent of the purchase price per month of delay) or the right to cancel and receive a full refund
• Refund terms for non-delivery: If the project is never completed, how and when are your deposits returned? The best contracts specify a timeline (60 to 90 days) and guarantee the return of all payments
• Specification sheet (anexo tecnico): This is the document that defines exactly what you are getting — floor plan, finishes, appliances, fixtures. It should be attached to the contract as an exhibit, not referenced separately
• Force majeure scope: Developers will claim force majeure for delays. Make sure the clause is specific — pandemics, natural disasters, government shutdowns — not a blanket excuse for any delay
• Assignment rights: Can you sell or assign the contract before delivery? Some developers allow it (sometimes with a fee), which gives you an exit option if your circumstances change

Developer Due Diligence Checklist

Before you write the first check, verify these items:

1. Licencia de construccion: The municipal building permit. No permit, no deal — even if the sales office is beautiful and the renderings are stunning. I have seen projects with gorgeous marketing materials that never obtained their building permits.
2. Land title verification: Have your attorney run a title search on the underlying land. Confirm it is not ejido (communal agricultural land that requires conversion before development), there are no liens, and the developer has clear ownership or a valid lease.
3. Track record: Has this developer completed projects before? Visit their delivered properties. Talk to owners. Check construction quality. Established developers like Pueblo Bonito (Quivira), Solmar Group (Rancho San Lucas), and Irongate (Costa Palmas) have institutional backing and multi-decade track records.
4. Financial backing: Is the project bank-financed? Projects with construction loans from major banks (Banorte, BBVA, Scotiabank) have institutional oversight. Self-financed projects from unknown developers carry more risk.
5. Environmental permits: The MIA (Manifestacion de Impacto Ambiental) is required for developments near the coast. Verify it has been approved by SEMARNAT.

The Real Risks

I would be doing you a disservice if I did not lay out the risks clearly:

• Construction delays: Almost every pre-sale project in Los Cabos is delivered 3 to 12 months late. Budget for it mentally and financially. If the delay exceeds your contract's timeline, your penalty clause kicks in.
• Quality variance: What you see in the model unit is not always what you get. Developers sometimes substitute materials or downgrade finishes during construction. Your specification sheet is your protection — make sure it is detailed.
• No escrow protection: Unlike the US, buyer deposits in Mexico do not automatically go into escrow. They go to the developer. If the developer goes bankrupt, you are an unsecured creditor. This is why developer due diligence is non-negotiable.
• Currency risk: Pre-sale contracts are often priced in USD, but some are in pesos. A peso-denominated contract exposes you to exchange rate fluctuations over the 18-to-36-month payment period.
• Market risk: If the market softens before delivery, your unit could be worth less than your purchase price. This happened to some 2019 pre-sale buyers during the 2020 pandemic pause.

Best Pre-Sale Opportunities in 2026

Based on my evaluation of current offerings:

• Quivira: New tower phases with ocean and golf views, backed by Pueblo Bonito's 40-year track record. Entry-level condos in the $400,000 to $600,000 range.
• Rancho San Lucas: Solmar Group continues building out this master-planned community on the Pacific. New villa phases and condos from $350,000 to $900,000.
• Cabo del Sol: The Park Hyatt residences are the marquee addition to this established Corridor community. Pre-sale condos from $800,000. See our Park Hyatt first look.
• Costa Palmas: Amanvari residences and new Four Seasons phases represent the ultra-luxury end. Entry above $1.5 million but with the strongest appreciation trajectory in the region. See our Amanvari guide.

For a broader comparison of new versus existing properties, see our guide on pre-construction vs resale in Los Cabos.