ever. Because the Mexican Constitution prohibits foreigners from purchasing or owning real estate within 30 miles of the Mexican Coast, a new safe method of holding title was created. This new instrument, modeled after the one in Monaco, allows ownership through a Mexican Property Trust, called a "Fideicomiso." This is a trust agreement, much like an estate trust, giving you all the rights of ownership.
The Department of Foreign Affairs in Mexico City issues a permit allowing the bank to act as purchaser for the property. The bank acts as the "Trustee" for the Trust and you are the "Beneficiary" of the Trust. This is not an asset of the bank; they simply act as the Trustee to hold the Trust.
Much like Living Wills or Estate Trusts in the U.S., the bank (Trustee), takes instructions only from the Beneficiary of the Trust (You). The Beneficiary 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 property by instructing the Trustee to transfer the rights to another qualified owner, or bequeath the property to an inheritor. The initial term of the trust is 50 years, and it can be renewed for an additional period of 50 years indefinitely, providing for long-term control of the asset.
You have all the rights of a property owner as in the U.S. or Canada, including the right to enjoy the property, sell the property, rent the property, improve the property, etc. This is not to be confused with a "land lease." The property you buy is placed in a trust with you named as the Beneficiary of the trust - you are not a lessee. If the property you purchase is already held in a Trust, you have the option of assuming that Trust, or having that property vested in a new Trust.
At MexQuest Mortgage, we work closely with State appointed, Public Notaries in Mexico for all Closings, and to secure your new Trust. On average, we can obtain your Trust between 45 to 60 days. We oversee the entire process and make certain you understand each and every step.
By using our U.S. bonded, third party Escrow service, First American Title or Stewart Title International, your money is held in an individually numbered, bonded and insured escrow account until your Trust is complete and the property rights have been transferred to you.
In the Trust document, you must name the Beneficiary or foreign owner for the property. This can be you personally, multiple partners, a foreign corporation, an estate trust, a living will, or other entity. The Trustee of the Trust (the bank) will take direction from whomever you name as the Beneficiary.
