Mexican Real Estate Q&A

Mexican Real Estate Q&A – Fideicomiso

Foreigners who are interested in purchasing Mexican real estate should continue to read below as the top questions and answers are provided about Mexican real estate and fideicomiso trusts.

What is a Fideicomiso?

A fideicomiso is a real estate trust that you can apply for at a Mexican bank of your choice when you purchase real estate in Mexico. The bank is the trustee to the fideicomiso, and you (or anyone you designate) are the beneficiaries of the trust. The beneficiaries have control over the real estate. The trust is not a lease, but it is equal to a Living Trust in the United States. You can sell it, mortgage it, use it, enjoy it, will it, and inherit it. The Mexican bank will represent you on your behalf, and be the administer

Do you need a Fideicomiso?

If you are a non-Mexican, you will need to use a fideicomiso to legally purchase any real estate in Mexico that lies in the ‘restricted zone’, which refers to any real estate that is within 31 miles (50 km) of all coastlines and 62 miles (100 km) from the borders of Mexico. Foreigners will not need a fideicomiso if they are purchasing real estate that is not located in the restricted zone, although many foreigners still choose to use the trust.

Does my property become an asset of the bank?

The bank has no rights to your property, the bank is merely a steward to your trust. Your property does not become an asset of the bank. No legal action against the bank or bankruptcy will affect your trust.

What is the Fideicomiso trust time period?

The fideicomiso trust time period is 50 years and at any time the trust can be renewed for a fee. The fideicomiso trust is always set for 50 year increments, which is also guaranteed for renewal.

What are the costs involved in getting a fideicomiso?

The current fideicomiso cost is $500.00 (USD).

Does the Mexican Government have the right to take my Property?

At no time can the Mexican Government take your property. Under the NAFTA – North American Free Trade Agreement states that Mexico cannot directly retrieve your property unless it was for a public purpose, such as building roads or highways, and then this can only be done through the correct legal action. The government will give you the fair market price for the trust along with any interest that may accrue.

Can I have a fideicomiso trust for any ejido land?

You cannot get a fideicomiso trust for any ‘ejido’ land as only Mexican nationals can own the ejido land legally. This type of land in Mexico is not considered real estate as it does not come without a title or deed.

Perfect Real Estate in Mexico

Choosing the Perfect Real Estate in Mexico

It’s hard to choose the perfect real estate property in any country, we know, but it’s definitely something you want to get right the first time when searching for the best real estate in Mexico! We have five tips which we think will help you to do just that:

  1. Choose the right location
  2. Looking in the kind of neighborhood for your needs is a huge part of ensuring that you get what you’re looking for first time. For example if you’re looking to move to the city and need a good base from which to get to work and town, or from which to raise kids, you should be looking at quiet, suburban areas with good transport links.

    If you’re looking to rent your property out to vacationers, however, then you’re going to want to buy a property in the middle of the action. For example a property within walking distance of bars, restaurants and souvenir stores.

  3. What does it offer you?
  4. When you’re thinking of renting out your property in Mexico, it is doubly important that you buy real estate in Mexico that is close to all the kinds of amenities that vacationers might want to make use of. So, for example, shopping malls, restaurants, gyms, secure beaches with lifeguards, golf courses and Spas. You will also need to consider that your purchase has a pool and 24 hour security.

    If you want to be really clever you can look into areas just out with the current tourist hotspots and check to see if there are any developments planned in the area. If there are then you could buy cheap and make good returns when the area develops.

  5. Future Real Estate Developments
  6. If you’re buying a property in a new development then make sure that you’re not basing your decision to buy on factors that could change. For example, if you’re paying a premium for a beachfront condo then you had better be sure that you’re in a position unlikely to be cut off from that oh-so-important view by more housing.

  7. Real Estate & Professional Administration Services in Mexico:
  8. A good real estate agent in Mexico can help you find the best property to suit your needs at the best possible price! They also know more about the local property laws than you will, so it’s definitely in your best interests to hire a good one, but once their part is done you should look into a professional administration service. They can take some of the stress out of the day to day parts of renting a vacation let in a foreign country.