Buying in Mexico

Bank Trust

For a foreigner to posses property in the 'restricted zone', a 'trust' is needed; In 1971, the Mexican Government, again, made it possible for foreigners to acquire property with in the restricted zone, they developed the 'Fideicomiso', or as we know it, 'The Bank Trust'.

The Trust works by holding Title to the property, while the beneficiary (you, the buyer) has all the usual rights of ownership. Unlike a lease, you have the right to sell, improve and make profit without the fear of being "kicked out' after your lease expires. The Bank Trust gives foreign investors the same rights as a Mexican citizen, the only difference being, foreign investors never receive the actual title. As most US home owners finance their homes, they never truly hold title to their property either; the bank does.

So things are not so very different in Mexico.

The Trust terms are 50 years, renewable for another 50 years and if you sell-on or

re-purchase, the meter always starts at '0'.

There are 2 steps in starting a trust; the trust permits and entering into the trust agreement, known as the 'Calvo clause'. The buyer and the bank must obtain these permits from the Foreign Affairs Ministry. Personal information, proof of title and explanation of intended use must be declared and the buyer must also agree to be considered Mexican, regarding his or her rights. The permit fee is usually paid to the bank and varies dependant on the Trusts duration; usually between $300-$1000 USD

When the permits are obtained, the real estate trust agreement is drawn up and taken to The Notary to be recorded.