Fideicomiso (Bank Trust)

Foreign investment in Mexican real estate requires a secure and compliant legal structure. Due to constitutional restrictions, non-Mexican individuals and entities cannot directly own property in the restricted zone (within 50 km of the coastline and 100 km from international borders) instead, they must acquire property through a Fideicomiso (Bank Trust) a legally recognized structure that allows foreigners to enjoy full ownership rights while complying with Mexican law.

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Why You Need an Attorney for Fideicomisos

Establishing a Fideicomiso involves complex legal and administrative processes. An Attorney ensures that the trust is structured correctly, protects your rights, and avoids costly errors. Without proper legal guidance, investors may face challenges such as invalid property titles, unclear trust terms, or excessive bank fees.

How We Help with Fideicomisos

• Setting Up a Trust: We coordinate with banks and draft the trust agreement to protect your property rights.

• Due Diligence on Property Titles: Ensuring that the property has a clear title and is free from liens or legal disputes.

• Negotiating Favorable Trust Terms: Avoiding unnecessary costs and restrictions in trust agreements.

• Handling Renewals and Transfers: Fideicomisos require renewals every 50 years and must be correctly transferred in case of resale or inheritance.

Legal Tips for Foreign Property Buyers in México

• Choose the Right Trustee Bank: Banks administer Fideicomisos. but their fees and services vary, select a trustworthy and transparent bank.

• Understand Your Rights: Even though a bank holds the title, you retain full ownership rights, including the ability to sell, lease, or inherit the property.

• Verify Property Title History: Fraudulent or unclear property titles can lead to legal disputes, always request a legal review before purchasing.

• Ensure Contract Clarity: The trust agreement must clearly outline your rights, responsibilities, and renewal terms to prevent unexpected issues.

At Encinas & Associates, we ensure. that your real estate investment  in México is legally secure and compliant. Whether you are purchasing a vacation home, investment property, or commercial asset, our firm provides expert guidance to navigate the complexities of Mexican real estate law with confidence.

Schedule your consultation today!