| Cancun, Cozumel, Playa del Carmen |
FIDEICOMISO - The Mexican Trust System
While many aspects of buying a home in Mexico look and feel like buying in the United States (U.S.)
you should remember that you are purchasing property in a foreign country. The manner in which you
will purchase in Mexico is different from that which you are accustomed to in the U.S.; it is not better or
worse, it is just different.
There is no doubt that you have heard of and been confused by the trust system that prevails in
Mexico, namely the Mexican "fideicomiso", and the so called "restricted zone". To clarify any
explanations you might have received in the past, a "fideicomiso draft, which matches with an American
trust agreement". Also you might be at the time knowledgeable that the so called "restricted zone" is a
strip of land 60 miles from the border front and 30 miles along Mexico’s coastline. Nevertheless, the
following clarifications might be of help for you:
For historical reasons, the Mexican Constitution of 1917 prohibits any and all foreigners from holding
direct title to land residing within 60 miles of its border or 30 miles of its coastline. Amendments to the
Constitution in 1994 altered this prohibition by allowing foreigners to own direct title of property for
commercial purposes, but still restricted direct title ownership for residential purposes. The Mexican
trust system was designed and encoded into law to permit foreigners to purchase "restricted zone"
property for residential purposes only in a manner consistent with Constitutional provisions.
Usage of Mexican trust, a "fideicomiso", allows non-Mexican nationals to purchase property in the
"restricted zone" by placing a property into a bankruptcy remote trust recorded in a Mexican Trustee’s
name. The Mexican trustee is a bank’s trust department and the property remain off balance from bank.
The trust agreement that governs the manner in which your property is managed stipulates that, while
the owner of record of the property is the Mexican trust, the "ownership rights" of the property belong
to the trust’s beneficiary. The beneficiary of the trust is the purchaser of the property: you are the
beneficiary. Trustees are paid an initial fee for recording the property in their name and are
subsequently paid an annual trust maintenance fee. The trustee is prohibited by the trust agreement
and by Mexican law from transferring the property or the beneficiary rights to the property, without the
written permission of the beneficiary.
To place residential property in the "restricted zone" into a trust, one has to first obtain a permit from
the Mexican Foreign Affairs Ministry (Secretaria de Relaciones Exteriores. SRE). We will submit the
request for the SRE permit on your behalf.
Many people erroneously refer to the trust arrangement in Mexico as a leasing transaction. Do not be
confused by misinformation. The home that you will buy will be put into a trust with you being the
beneficiary of the trust; you are not a lessee. You have all the rights that an owner of property in the U.
S. has, including the right to enjoy the property, sell the property, rent the property, transfer it through
last will, etc.
Bank Trust fee: Each bank has different fees. Some have a fixed rate and some others calculate it
according to the appraised value of the property. You can expect yearly fee between $500.00 and
$1,000.00 US
While many aspects of buying a home in Mexico look and feel like buying in the United States (U.S.)
you should remember that you are purchasing property in a foreign country. The manner in which you
will purchase in Mexico is different from that which you are accustomed to in the U.S.; it is not better or
worse, it is just different.
There is no doubt that you have heard of and been confused by the trust system that prevails in
Mexico, namely the Mexican "fideicomiso", and the so called "restricted zone". To clarify any
explanations you might have received in the past, a "fideicomiso draft, which matches with an American
trust agreement". Also you might be at the time knowledgeable that the so called "restricted zone" is a
strip of land 60 miles from the border front and 30 miles along Mexico’s coastline. Nevertheless, the
following clarifications might be of help for you:
For historical reasons, the Mexican Constitution of 1917 prohibits any and all foreigners from holding
direct title to land residing within 60 miles of its border or 30 miles of its coastline. Amendments to the
Constitution in 1994 altered this prohibition by allowing foreigners to own direct title of property for
commercial purposes, but still restricted direct title ownership for residential purposes. The Mexican
trust system was designed and encoded into law to permit foreigners to purchase "restricted zone"
property for residential purposes only in a manner consistent with Constitutional provisions.
Usage of Mexican trust, a "fideicomiso", allows non-Mexican nationals to purchase property in the
"restricted zone" by placing a property into a bankruptcy remote trust recorded in a Mexican Trustee’s
name. The Mexican trustee is a bank’s trust department and the property remain off balance from bank.
The trust agreement that governs the manner in which your property is managed stipulates that, while
the owner of record of the property is the Mexican trust, the "ownership rights" of the property belong
to the trust’s beneficiary. The beneficiary of the trust is the purchaser of the property: you are the
beneficiary. Trustees are paid an initial fee for recording the property in their name and are
subsequently paid an annual trust maintenance fee. The trustee is prohibited by the trust agreement
and by Mexican law from transferring the property or the beneficiary rights to the property, without the
written permission of the beneficiary.
To place residential property in the "restricted zone" into a trust, one has to first obtain a permit from
the Mexican Foreign Affairs Ministry (Secretaria de Relaciones Exteriores. SRE). We will submit the
request for the SRE permit on your behalf.
Many people erroneously refer to the trust arrangement in Mexico as a leasing transaction. Do not be
confused by misinformation. The home that you will buy will be put into a trust with you being the
beneficiary of the trust; you are not a lessee. You have all the rights that an owner of property in the U.
S. has, including the right to enjoy the property, sell the property, rent the property, transfer it through
last will, etc.
Bank Trust fee: Each bank has different fees. Some have a fixed rate and some others calculate it
according to the appraised value of the property. You can expect yearly fee between $500.00 and
$1,000.00 US
Marina Condo is one of the original condominiums in
Puerto Aventuras, located on the second and third
floor above the marina-side restaurants and shops.
This condo has a living area, dining and full kitchen,
laundry room, bedroom with 2 double beds,
bathroom, and a large terrace great for people
watching, all this on its first level. The second level
of this condo houses the master bedroom with king
size bed, master bath, and private terrace, along with
an extra room with daybed. Marina Condo comes
completely furnished, including linens and
kitchenware. Sky satellite TV included in the two
bedrooms. $250,000.
Puerto Aventuras, located on the second and third
floor above the marina-side restaurants and shops.
This condo has a living area, dining and full kitchen,
laundry room, bedroom with 2 double beds,
bathroom, and a large terrace great for people
watching, all this on its first level. The second level
of this condo houses the master bedroom with king
size bed, master bath, and private terrace, along with
an extra room with daybed. Marina Condo comes
completely furnished, including linens and
kitchenware. Sky satellite TV included in the two
bedrooms. $250,000.
| Many more listings are available. Send us your information today from the home page and we will contact you to discuss the possibilities. Prices and availability subject to change without notice. These are real sample listings. |
Villas Kin Ha is located within the exclusive Sirenis
Mayan Resort complex. This luxurious 2-bedroom,
2.5-bath condominium has living and dining areas and
kitchen on the ground level with two bedrooms on the
second level. Villas Kin Ha's architecture is
Mediterranean, with elite finishes such as polished
Italian marble floors, granite counter tops in kitchens
and bathrooms, double-pane insulated
hurricane-resistant glass, central air-conditioning,
Hunter-Douglas ceiling fans, and a private balcony with
pool, ocean, and resort views. Each unit comes fully
furnished and includes the first year's maintenance.
Villas Kin Ha offers a large swimming channel with
palapa lounge areas, and exclusive access to a
dedicated beach by Yalku Bay for residential owners
only. $300,000.
Mayan Resort complex. This luxurious 2-bedroom,
2.5-bath condominium has living and dining areas and
kitchen on the ground level with two bedrooms on the
second level. Villas Kin Ha's architecture is
Mediterranean, with elite finishes such as polished
Italian marble floors, granite counter tops in kitchens
and bathrooms, double-pane insulated
hurricane-resistant glass, central air-conditioning,
Hunter-Douglas ceiling fans, and a private balcony with
pool, ocean, and resort views. Each unit comes fully
furnished and includes the first year's maintenance.
Villas Kin Ha offers a large swimming channel with
palapa lounge areas, and exclusive access to a
dedicated beach by Yalku Bay for residential owners
only. $300,000.
