No More Bank Trust for Mexico Real Estate?Reforma al artículo 27 constitucional.

Published on: Apr 24 2013 by Thomas Lloyd

Bank Trust Fideicomiso in Mexico real estate

The Mexico Chamber of Deputies passed the law yesterday

As I already pointed out in our other blog, yesterday Mexico’s Chamber of Deputies passed a law which would eliminate the requirement for owning by means of a Bank Trust for non-Mexicans.

Some background about the Bank Trust as it currently stands:

  • non-Mexicans are not permitted to own directly in the “Restricted Zone”
  • this “Restricted Zone” is 60 m along any border or 30 miles along any coast
  • this restriction is a part of Mexico’s Constitution (article 27)
  • the Bank Trust allows for ownership in this area
  • the bank holds the title
  • the owners is the second beneficiary
  • it offers all rights and privileges of direct ownership

The new law would modify the constitution to allow for direct ownership in the “Restricted Zone.”  Some details include:

  • The modification would apply to residential property only.
  • Direct ownership would still NOT be permitted for property for commerce, industry or agriculture.

Mexico title deedThe law has currently passed the Chamber of Deputies, which is the equivalent of the House of Representatives in the U.S. To be applied as law, it also has to gain the approval of the Senate.

Currently, I am not aware if there is any timeline or expected time frame within which there will be a vote from the Senate.  Someone has also mentioned to me that approval from half of the state governors is required.  I have not seen this in Mexican news sources yet, but I will keep an eye open for new information and offer updates as they are available.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 16 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the president of Top Mexico Real Estate. Contact him at (512) 879-6546.

The TOP Mexico Real Estate Network; “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

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