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What is a FideicomisoThe Real Estate Trust and Mexican Property InvestmentNew rules that provide stability and legal certainty for all foreign real estate investments in Mexico were put into effect in 1993. These rules are apparently not widely understood, and have been confused further by recent situations that predated and were not covered by these rules. The 1993 rules outline guaranteed methods by which foreign entities can safely invest in real estate along Mexico's coastal and border areas, including Pedregal de La Paz. How Foreign Individuals Can Purchase Property in MexicoWith a Fideicomiso Transaction:
* The Mexican bank holds the title to the property in trust for the beneficiary/foreigner who retains the exclusive right to use and control the property. Even though, owner can use, occupy, possess the Trust property and build upon it, while subject to applicable regulations. * The bank serves as a trustee or legal owner of the property while the foreign investor is the legal beneficiary of the Trust. * The bank acts on behalf of the beneficiary in all transactions involving the property held in trust. * The beneficiary controls and makes all decisions regarding the property including the decision to transfer, assign or otherwise dispose of his or her interest in the property. A Fideicomiso is a contractual arrangement, which is almost identical to the type of Trust commonly used in the United States. These Mexican Bank Trusts are established for an initial 50-year period and can be renewed in perpetuity. Foreigners who decide to invest in Real Estate in Mexico agree, because of such action, not to invoke the protection of their governments with respect to the property or Trust. Pacific Closing Company is Pedregal de La Paz inhouse closing services provider. They are capable of taking care of all the paperwork that needs to be done when buying and selling a property. For more information of all the services that Pacific Closing Company provides, please contact them at. info@pedregal.com |
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