Fideicomiso or Bank Trust

30/01/2020

The fideicomiso is an agreement set up between the Mexican foreign buyer and a Mexican bank. The bank acts on behalf of the buyer The bank will have title, but has a fiduciary obligation to follow the directions and wishes of the foreign buyer The non-Mexican buyer can enjoy, use, rent out, improve upon the property, expand, build and sell the Mexico Real Estate and reap 100% of the profits

other facts:

fideicomitente = seller of the property

fiduciary = the bank acting as the trustee and holder of the title

fideicomisario = beneficiary of the property

Term of 50 years, and it is renewable for another 50 year term

second beneficiaries can be established within the trust to establish automatic inheritance of the property in case of deaths of the first beneficiaries

The buyer, can choose which banks he wishes to establish his Bank Trust There are various multi-national banks in Mexico including Citibank, Scotiabank, HSBC, Bancomer, as well as several Mexico national banks which include Banorte