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.

Vallarta Real Estate Tips

Best Nuevo Vallarta Real Estate Tips

Are you looking for the best Nuevo Vallarta real estate tips? Are you considering purchasing property in Mexico? One thing to remember when purchasing property in another country is the purchasing process may be different than in the United States or Canada. You shouldn’t be alarmed as it isn’t worse, but just different. If you have a good realtor, then buying property in Nuevo Vallarta or anywhere else in Mexico will be a breeze.

Nuevo Vallarta Real Estate

Nuevo Vallarta is one of the best places to purchase real estate for retirement or even part time living to escape the snowy winters that North Americans are used to. Here are a few of the benefits of living in Nuevo Vallarta: cultural activities, tours, 8 golf courses, warm lovely people, beautiful beaches, a tropical lifestyle, and some of the best private medical facilities worldwide. Currently, the population of Nuevo Vallarta and Puerto Vallarta is around 350,000 people, many of whom are from the USA and Canada, who are property owners in Nuevo Vallarta.

Choosing an agent for Nuevo Vallarta Real Estate

Always check the references of your Nuevo Vallarta real estate agent, broker, or attorney before you make the move. One thing a realtor in Mexico should be is a member of the A.M.P.I., which is the Mexican Association of Professional Realtors. Also, before you hire the realtor ask these following questions:

  • Why did you make the move to Mexico?
  • How long have you been in Mexico real estate?
  • Why should I hire you?
  • Give me several reasons why I should work with you.
  • Can I have previous owner references?
  • Can you briefly describe your work ethic to me?
  • Do you currently own property in Mexico?

If your real estate agent owns property in Nuevo Vallarta, then they will know all the information about the town, so the last question is a good one to ask. There are many places to purchase property in Mexico including South Shore, Hotel Zone, Bucerias, Nuevo Vallarta, Puerto Vallarta Old Town, Mismaloya, so make sure you hire a professional who can give you all the information on your new neighborhood.

Don’t worry!

Buying Nuevo Vallarta real estate is not worse or better than back home, it’s only different! Always stay open minded, especially when you are dealing with the paperwork and the bureaucracy that you will encounter. These are the best Nuevo Vallarta real estate tips. Using these tips will help you purchase property in Mexico without any problems or difficulties.

What Does Realty Refer To

What Does Realty Refer To?

Have you ever wondered what the word “realty” really means? Find out below.

Realty Explained

Any legal improvements to land that have been done by man is defined as real property, realty, and real estate. These improvements could include buildings and houses, as well as wells, roads, canals, and the inclusion of machinery. The two main subunits of property according to the laws in every country are referred to as “real” property and “personal” property. Civil law protects real property or realty in all countries, providing guidelines for buying and selling property among other regulations.

History of the word “realty”

The word “realty” dates back to Latin, the word “real” meaning “thing”, In the English language it means related to things and these things include real property personal property.

Laws of Protection

In any common law, realty is protected. Parties have to resort to a form of legal action if they want to sell real property or exchange ownership. Today’s law clearly states the difference between real property and personal property. Real property would be considered land and all the objects that is attached to that land (immovable property) and personal property is personal belongings such as clothing, furniture, and personal money (movable property). The difference between movable property and immovable property is simple as immovable property doesn’t move, such as land with a title or deed and moveable property is property that the buyer would need a title for.

Estates and Ownership

There are different kinds of interests that the law recognizes, which are called estates. The estate property is determined by a deed, a lease, a grant, will, or a purchase of the property. Estates and ownerships have legal rights, and the time of the estate. Any person who is using and enjoying an estate is referred to as a tenant.

Some common realty terms

  1. Fee Simple – Fee Simple refers to realty that can be transferred freely and the estate has an unlimited time. This is the most popular and common estate, because the tenant gets to use and enjoy the estate and has rights over the disposal of the property.
  2. Conditional Fee Simple – The Conditional Fee Simple is an estate that can last forever, but the conditions of the estate has to be stipulated by the grantor of the estate. If the grantor of the estate doesn’t stipulate any conditions, then the property is reversed to the grantor.
  3. Fee Tail – The Fee Tail is an estate that is given to the heir upon the death of the tenant.
  4. Life Estate – The Life Estate is also referred to as a ‘life tenant’. The estate lasts as long as the grantee is alive, which is why it is called the life estate. If the estate’s contract states the realty can’t be sold it can’t be changed while the grantee is still alive.
  5. Leasehold – A Leasehold is an estate that has been set up for a limited time on a contract. The lease is between two parties, a lessee and the lessor. An example of a leasehold is when someone rents a house or an apartment and has a one year’s lease, and the lessee agrees to pay the rent for that one year.