Owning in Mexico
BANK TRUST/FIDEICOMISO
In the “restricted zone” of Mexico (60 miles, or 100 km from the border and 50 km, or 30 miles from the coast) foreigner may purchase Real Estate through a Bank Trust also known as a Fideicomiso which is a Mexican Trust agreement, it gives to the purchaser all of the rights of ownership. The way it works is the Mexican government issues a permit to a Mexican Bank of your choice allowing the Bank to act as a purchaser for the property. The parties involved in a Fidiecomiso:
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THE PURCHASER.- Fideicomisario ( beneficiary)
THE TRUSTEE.- Fiduciario (Bank)
THE SELLER.- Fideicomitente (owner of the original property)
THE NOTARY.- Notario Publico is an attorney (official representative of the government)
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The Bank or Trustee takes instructions only from the beneficiary of the Trust (the purchaser). The beneficiary has the right to use, sell, rent, enjoy, lease, posses the property including the right to build on it or improve it. The initial term of the trust is 50 years and it can be renewed in 50 years indefinitely. The entire process to obtain the Trust is from 30-90 days.
The Notary
Called a Notario Publico, is a licensed attorney, certified by the state or federal government to act as an official representative of the government of México. The Notary performs a variety of tasks including the authentication of legal documents, the calculation of capital gains tax and is responsible for ratifying all Real Estate transactions in Mexico.
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