Buying Real Estate in Mexico with a Bank Trust or "Fideicomiso"
Most foreigners believe buying Real Estate in Mexico is exclusive to Mexican
citizens. In reality, foreigners can purchase Real Estate anywhere in the country,
including the border zone and beach areas. Article 27 of the Mexican Constitution
states the restricted zone as all land within 50 km (32 miles) from high tide
and 100 km (64 miles) from any border in Mexico. Foreigners can legally own
property in the restricted zone through the use of a bank trust or “fideicomiso” (Fe-day-co-me-so).
About the Bank Trust or "Fideicomiso"
The Mexican government established the trust system as a way of protecting
foreigners interested in owning property in Mexico. Since any property purchased
in the restricted zone must go through the trust process, the transaction is
automatically reviewed, ensuring it is legal and unencumbered, thus providing
security to the buyer.
The bank trust has the following attributes:
• The bank (trustee) holds the trust deed for the person or persons
purchasing the property (beneficiaries).
• For all legal instances, the beneficiary of the trust is the rightful
owner of the property and may lease, sell, mortgage or inherit the property.
• The bank is required to check ownership, insurance and indebtedness
of the property, providing further protection to the foreign owner.
• Trusts are usually granted for 50-years and renewable at the end of
the period. The owner has an additional 10 years to renew the trust with the
bank after the end of the term.
• If you purchase property currently held in a trust deed, a new 50-year
period can be established or the existing trust deed may be assigned to the
• Trusts are renewable at any time by applying with your bank.
• To open a trust account with the bank, you will require the accepted
offer of purchase, a photo ID and 10% of the purchase price.
• A bank contract should be given to you at the time of your deposit.
Properties purchased by individual buyers are not part of the bank’s
assets and cannot be subject to any lien or attachment for any bank obligations.
It should be noted that the bank trust system is not a lease, as the government
does not claim back the properties at the end of the trust period; rather,
beneficiaries have the right to renew the trust period.
This article was provided courtesy of Buy
In Baja, specializing in Northern Baja Real Estate.