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How Fideicomisos Allow You To Buy Property in Mexico's Restricted Zone

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By : Serapis Murillo    99 or more times read
Anyone that has ever thought about buying property on one of Mexico's white sandy beaches or near the border with the US probably knows that these areas are considered "restricted" so only Mexican citizens can buy here.

However, you may also be aware there is a loophole which will allow you to bypass this Mexican Constitutional requirement that you be Mexican national in order to buy. That loophole is known as the Fideicomiso.

What is a Fideicomiso and How Does it Work?

A Fideicomiso is basically a legal agreement that you enter into with a Mexican financial institution where they own the property but you have control over it. The Mexican Financial institution will basically buy the property under their name and hold it in a trust on your behalf. The trust agreement gives you, the buyer, full control over the property and basically allows you to do with your property anything a regular owner would be able to do. This includes renting it out, making additions, selling it, etc.

The 3 Parties to a Fideicomiso

There are basically 3 parties involved in a Fideicomiso:

  1. The Fideicominte
  2. The Fiduciario
  3. The Fideicomisario

The Fideicominte

The fideicominte is basically the seller or previous owner of the home. He is the one that will sell you the property that will be placed in the trust.

The Fiduciario

The fiduciario is the financial institution or the trustee that will have the legal ownership over the property but will be subject to your orders.

The Fideicomisario

You are the fideicomisario. The fideicomisario is basically the "real" buyer behind the scenes which controls the property which was placed in the trust. As the fideicomisario you have full control over the property and the fiduciario has to follow all of your orders in terms of buying, selling, etc.

Summing It All Up

To sum it up, a fideicomiso is basically a legal agreement that allows foreigners to purchase land within Mexico's restricted zone. This is done through a trust fund where the property is held on your behalf by a trustee. You have full rights over the property but it is not legally under your name. The property can be sold or rented at any time and you are the one that will reap the profits or losses associated with home ownership.
About the VivaReal Network

VivaReal is a Latin America real estate listings network that has many properties throughout Mexico. Their core focus is on helping expats, investors and retirees find international real estate opportunities throughout the Americas.

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