Fidecomiso Trust It is now possible for US citizens to acquire the rights to property in the coastal zones of Mexico through holding title in a Mexican Trust called a Fideicomiso Trust. The Fideicomiso Trust allows the borrower to become the Beneficiary of the Trust. According to Mexican law, the Fideicomiso has an initial lifespan of 50 years with renewable 50 year periods provided upon written request by the Beneficiary of the Trust. As Beneficiary, you are entitled to all typical land ownership rights you are accustomed to in the US such as the right to a mortgage and the right to rent, improve, will, sell or profit from the sale of your property at your own discretion. Upon sale of the property, the buyer may assume the existing Trust or it may be cancelled and a new Trust formed with all proceeds minus appropriate taxes going to the Beneficiary at closing The Mexico loan process is complicated compared to a US loan and various 3rd party Mexican institutions need to be dealt with to co-ordinate the funding of these loans. An important piece of documentation that needs to be gathered is the Trust Cancellation letter.
The seller requests this and only upon receipt of this can we establish the new trust on your behalf. This can be a loan delayer, so we advise confirming this with the seller upon submission of an offer on any real estate purchase that will be financed. The SRE permit allows a foreigner to own a piece of land in Mexico. This is requested upon submission of the water bill, tax bill, title and condominium regime and can only be requested once these documents verify who the rightful owner is and that the property is lien free.
These documents are usually collected by the Real Estate broker representing the seller; however we do employ a closing company to collect these documents. Ensuring that that the Seller has these documents on hand contributes greatly to a smoother, quicker close. Most banks will require 2 appraisals. A US style appraisal and a Catastral appraisal (Mexican appraisal) for tax purposes. This information is brought to you by our associate
Colin Thomas from Baja Capital Mortgage colin@bajacapitalmortgage.com
www.bajacapitalmortagage.com US and Canada toll free 866-471-6804 Mazatlan 669-117-9875 Return to top |