Owning Property In Mexico

FIDEICOMISO OR BANK TRUST
Any foreigner or Mexican national can constitute a Fideicomiso (the equivalent to an American beneficial living trust) through a Mexican or American bank working in Mexico (Citi Bank, First Republic of NY, HSBC, Scotia,  etc) in order to purchase real estate anywhere , including the Restricted Zone. To do so, the buyer requests a  bank of his/her choice to act as a trustee on his/her behalf. In very simple words, you, your corporation, your trust, hires the bank to hold your title, as you do it to hold your money or hold your values in a safe.(BUT IN ANOTHER COUNTRY, SO ITīS EXCELLENT TO PROTECT YOUR ASSETS IF BANKRUPTCY, DIVORCE, OR POSSIBLE DEBTS )

Learn the USA , Arizona State opinion on mexican real estate

The bank, as a matter of normal course, obtains the permit from the Ministry of Foreign Affairs to acquire the chosen property in trust. The Fideicomiso can be established for periods  of 50 years and is automatically renewed for another 50 year period. During these periods you have the right to transfer the title to any other party, including a member of your family or simply sell your rights, itīs so "private property" that you could destroy the property if that is your whish.

 The bank becomes the legal owner of the property for the exclusive use of the buyer/beneficiary who has all the benefits of a direct owner, including the possibility of leasing or transferring his/her rights to the property to a third party or to a preappointed heir. During this period, the foreigner is considered as a Mexican National. Meaning you pay property taxes, very low , 100,000 dls property pays 100 dls a year.

The trustee is responsible to the buyer beneficiary to ensure precise fulfillment of the trust, according to Mexican Law, assuming full technical, legal and administrative supervision in order to protect the interests of the buyer/beneficiary. Fideicomisos are not held by the trustee as an asset of the bank.  And in the eventuallity that the bank went bankruptcy Mexican government grants all the assets of the investors. They really want you to come back and spend money while vacationing in the country.

For practical purposes, even in unrestricted zones many foreigners and Mexican nationals, for the matter, prefer to hold their property under a Fideicomiso.

US FINANCING
Until very recently buying property in Los Cabos was for cash buyers with some limited developer financing available. With the passing of NAFTA in 1993 there have been some changes. For the first time in Mexico financing is available through US mortgage companies.

There are several mortgage companies offering financing, with differences in interest rates and terms. we can work with you to help you decide which one is the best for you. Please contact us for more information.

Stewart Title Latin America - Home

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www.fidelity.com      www.international-landtilte.com

As in other countries, Title Insurance is available through the Mexican branch of American escrow companies. Based on the title search, you can either obtain an "owners" or as "lenders" policy of title insurance, securing your investment in Mexico.

Comprehensive Title Reports can be acquired on your potential investment in order that you find out who really owns the property you are interested in; the meters and boundaries; the encumbrances and the chain of title, etc.

Investing requires knowledge and the more information you have the better your decisions will be. Therefore, if you are thinking about purchasing real estate, your first move, as with any other investment, should be the proper information regarding your potential investment.