Many Americans have heard stories and rumors about the difficulties involved in the ownership of property in Mexico. Until 1973, it was necessary to carry title to your property in the name of a Mexican citizen who acted as your nominee. A ‘side’ agreement between you and your nominee evidenced your “ownership" of the real estate in question.

While that method of ownership is still being used, the Mexican government has created a superior alternative, a Mexican Bank Trust or Fideicomiso. The Mexican bank holds title to the property in trust for the foreign purchaser [non-Mexican] who becomes the beneficiary of that trust. The trust guarantees the foreign buyer of all the rights and privileges of ownership as enjoyed in the U.S. The foreign investment law, FIL, and constitutional amendment enacted in 1973 and amended in 1994, allows the trust to be established for a term of 50 years and is renewable, at any time, thus allowing legal and equitable ownership in perpetuity.

Because tourism and foreign investment is vital to the health of the Mexican economy, the Mexican government established the trust system to protect foreign investors seeking to own property in Mexico. By making ownership pass through the trust process, the bank is required to check ownership, insurance and liens against the property. This creates accountability for valid ownership and debt free property.

The creation of a Fideicomiso for a foreign property buyer is handled by a Mexican Notary [an attorney].