Yes, U.S. citizens can safely and securely acquire real estate in Mexico through a bank trust (known as a fideicomiso), and you can sell, inherit, will, devise or donate the property.
The Mexican Foreign Investment law enables foreign investors to acquire rights over real estate in the restricted zones (61 miles from the border or 31 miles from the beach) through a fideicomiso or restricted area bank trust, which is the only legal recourse for non-Mexican real estate buyers that offers judicial security to all parts involved in a real estate transaction.
The Ownership process thorough a fideicomiso is very similar to conventional ownership rights. The purchaser will set up a fideicomiso through a private financial institution, primarily thorough a established bank. The fideicomiso bank trust will protect the land, and any construction, buildings or work in progress on the property. You as the fideicomiso beneficiary will have the privilege to use and enjoy the property for personal, residential or leisure purposes. You have the right to make improvements, develop new constructions or modify existing ones. You can also rent the property to any person or entity.
You may transfer the right if you decide to sell the property and negotiate its price freely, without the intervention of the banking institution who issues the fideicomiso. You can also name substitutes in case of death and they may enjoy the same benefits. The constructions or modify existing ones. You can also rent the property to any person or entity.
You may transfer the right if you decide to sell the property and negotiate its price freely, without the intervention of the banking institution who issues the fideicomiso. You can also name substitutes in case of death and they may enjoe the same benefits. The fiduciary banck will only intervene in the formal legal procedures transferring the rights and acts as an impartial parts in the process.
The restricted zone bank trust last for 50 years, which can terminated at any time by agreement of the parts. You may request an additional 50-year extension before the current trust expires and additional properties may be added to an existing contract with the condition that the land be adjacent to the property already specified in the current fideicomiso.
In order to prevent economic losses and protect you investment, consider purchasing title insurance services. Various title insurances can be issued by established financial institution, including some major U.S. companies like Stewart title. You can benefit from the financial resources and experience of a title company. The title company assumes the responsibility of paying you as its clients for the losses you may suffer if the rights over the property purchased don’t match those specified in the title certificate.
As part of the service, the company issuing the insurance will carry out a thorough investigation of the property, checking its legitimacy and inquire about liens, encumbrance, mortgages or other restrictions. The title insurance will only require a one-time payment and is valid as long as you keep the legitimate rights over the property.
Your Best Buys in Baja real estate agent is ready to help you understand all issues regarding the establishment of a fideicomiso bank trust and title insurance purchases.
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