Fideicomiso, Trust Fees, Taxes, Closing Cost and more?
While I tour my clients in my car, I always ask them what they know about Real Estate in Puerto Vallarta and the Fideicomiso, if you as them you're not familiar with, I invite you to keep reading this blog.
The fideicomiso is a legal constrict similar to a trust to which which a person gives ownership of certain assets for it to administer. The fideicomiso, sometimes referred to as a bankers trust, is most commonly used to hold real estate in Mexico.
Such a fideicomiso is a real estate trust that is held under your name in a Mexican bank (Scotia Bank, HSBC Banamex , Santander, Banco del Bajio, etc). The bank acts as the fiduciary, you and your heirs and assigns are the beneficiaries of the fideicomiso.
The fideicomiso is not a lease, it is equivalent to a fiduciary in the US. The fideicomiso gives the beneficiary absolute control of the property. So you can enjoy it, lease it, improve it, mortgage, sell, inherit, give away.
Basically, your property is under a fiduciary of which you are the owner to be managed by a bank in Mexico on your behalf.
The purpose of a fideicomiso is to authorize foreigners the power to buy real estate in Mexico within the “restricted” zone and ensure a secure transaction. The “restricted” zone is land 31 miles (50 km) from the coast and 62 miles (100 km) from the border.
It's important your fiduciary is not owned by the bank; they are simply administrators. You and your kin are the beneficiaries. The fideicomiso of your Mexican property is granted to you, the beneficiary and is not considered as property of the bank. In this way your property is not exposed to legal problems in which the bank can be found. You are the beneficiary of the fiduciary.
Americans usually worry that their property may be taken over by the Mexican government. Under the North American Free Trade Agreement (NAFTA), Mexico can not, directly or indirectly, expropriate. The only exception is when the government needs the land for public works (example: road construction).
I hope you’ve found this article on fideicomiso to be helpful. For more information, or for assistance in buying real estate in Mexico, please contact me at firstname.lastname@example.org or call me at +52 1 322-292-2312. My team and I, Will be happy to assist you.