The Bank Trust for Ownership of Real Property in Mexico:
27 of the Constitution of the Republic of Mexico prohibits foreign ownership of real
property located within 30 miles of any coastline or 60
miles of either boarder. This is referred to as the "Prohibited
1973 President Echeverria, realizing that many Foreigners
were more comfortable with the rights of ownership, and
that they would bring needed dollars into the country,
approved the bank trust (Fideicomiso) form of ownership
which is available to non-Mexicans. This regulation was
further expanded in the Foreign Investment Law of 1989.
located within the prohibited zone, which includes the
entire Baja Peninsula, may be acquired by a foreigner
through a Mexican Bank Trust naming the buyer of the property
as the beneficiary of the trust. Fee simple is placed
in the name of the bank selected by the buyer, as his
trustee. The bank administers the property according to
the instruction of the buyer/beneficiary. The buyer/beneficiary
has full ownership rights: he may build on the property,
tear down existing buildings, modify them, rent, lease
or sell at any time conforming to the general laws of
term of the trust is fifty years and can be perpetually
renewed. In other words, title to the property may rest
in one beneficiary indefinitely, provided that it is renewed
within the terms established by the law.
procedure for establishing the Fideicomiso (bank trust)
is as follows: application must be made to the Secretary
of Foreign Relations which includes a description of the
property to be placed in trust, the use for which it is
intended, and personal date on each of the beneficiaries.
Once granted, the bank instructs a notary to draw up the
trust document, which is recorded in the state where the
property is located.
of the cost to establish the trust will depend on the
appraised value of the property. Normally the closing
cost to the purchaser is around $5,000 US Dollars. Your
agent will go over the closing costs when you make an
offer on your chosen property.