As mentioned in the Mexican constitution, no foreigner can acquire land directly in Mexico. If you are a Canadian who wishes to acquire land in the region called the restricted zone it needs to be done through a trust.
Here are the four basic things you need to know about a bank trust here in Mexico.
If you are a non-Mexican, Canadian or American and you wish to buy property within 50 km of any coastline here in Mexico or 100 km within the boarder of a neighboring country you will be required to have a bank trust.
In the region called the restricted zone no foreigner can acquire land directly in Mexico. In this zone meant nobody other than Mexican nationals were allowed to invest in lands located here. The situation has changed and the coastal and border areas that were restricted from foreign investment have opened to foriegners. This is thanks to the issuing something called a ¨fideicomiso¨, which is a bank trust. The fideicomiso was created to allow foreign investors to participate in Mexico´s rapidly expanding sectors. They can exercise complete and legal control over their investments and also comply with Mexico´s investment laws.
Trusts are normally for specific period of time and can not exceed 50 years
Except under certain specific cases when such term can be exceeded. Also, there are certain types of trusts that can be extended, for instance land trusts which are discussed below. Furthermore, trusts can terminate under various scenarios including the trust reaching its purpose, when such purpose becomes impossible to satisfy, by agreement of the trustor and beneficiary, or when revoked by the trustor, if the trust allows for such revocation, to name a few. After it´s expired, and unless otherwise provided by the trust, the trust assets will be distributed to the beneficiary.
The trust or fideicomiso normally consists of three parties: the trustor or settlor, the trustee, and the beneficiary
The trustor or settler can either be an individual or an entity, and it’s the party that usually transfers title or management of certain assets, rights and benefits to the trustee, who holds them in trust. The trustee is the party that holds the assets in trust, and the party that is given the responsibility of performing and complying with the specific purposes and goals of the trust. The beneficiary is not a party that appears in all trusts. They stand to benefit from the assets and trust by having privileges or special rights to the assets such as a security interest, or by receiving income from the assets, to name a few.
When you own a property here in Mexico underneath a bank trust you have all rights to that property
You can extend on it, you can make modulations, and sell or take a lease out on the property.
Now if you have any question about how to purchase property in Mexico or about any of the TOP MEXICO REAL ESTATE properties we have listed anywhere throughout Mexico, please feel free to contact any of our Top Mexico Buyer’s Representatives and we will be glad to help you find your very own piece of paradise.
And remember, here at TOP MEXICO REAL ESTATE…
We make it happen!