The Bank Trust (Fideicomiso)
A Fideicomiso works similar to a U.S. Bank Trust. In a
Fideicomiso the Mexican Government issues a permit to a Mexican Bank of
your choice, allowing the bank to act as purchaser of the property. The
bank then acts as the “Trustee” for the trust and the owner becomes the
beneficiary of the Trust. The “Beneficiary” rights are very similar to
those of Living Wills or Estate Trusts in the U.S.
The law authorizes Mexican banking
institutions to act as trustees. A trustee takes instructions only from
the beneficiary of the trust (the foreign purchaser). The beneficiary
then has the right to use, occupy and possess the property, including
the right to build on it or otherwise improve it. The beneficiary may
also sell the rights and instruct the trustee to transfer title to a
qualified owner.
Many individuals incorrectly refer to the
trust arrangement in Mexico as a lease agreement... this is not true. The
property you buy will be put into a trust with your name as the
beneficiary of the trust. By no means are you a lessee. You will have
the exact same ownership rights that an owner of property will have in
the United States or in Canada, including the right to use the property,
sell the property, rent the property or improve the property.
The initial term of the Property Trust is
50 years and an investor can renew the Trust for an additional period of
50 years. This process can be continued indefinitely. |
