oes the Mexican government for future growth and setting an
own my land if I purchase example of the benefits of trade
land in Mexico? liberalization.
Due to recent trade agreements Today, nearly 1.5 million
made between the United States, Americans own property in Mexico.
Canada, and Mexico, called the As a foreigner, the buyer can
North American Free Trade obtain all the rights of
Agreement (NAFTA), and bank ownership by setting up a bank
trusts, called Fideicomiso, trust, similar to a US family
foreigners are allowed to trust, known as a Fideicomiso.
purchase land in Mexico. American
Title companies are also involved What is a Fideicomiso?
in the purchasing process,
allowing for secure transactions. A Fideicomiso makes a buyer the
beneficiary of the purchased
What is the North American Free property, allowing the buyer to
Trade Agreement? use, lease, sell, will, improve
or encumber the purchased
In 1994, North American Free property. The Trust does not give
Trade Agreement (NAFTA) between direct ownership to the foreign
the United, States, Canada, and beneficiary. Instead, it
Mexico was formed as the world’s establishes the legal basis by
largest free trade area, allowing which the bank holds the legal
for purchasing land safely in title to the property in order to
Mexico. The agreement allows for act on the foreigner’s behalf.
economic growth and rising
standards of living in these The Foreign Investment Law, which
three countries, while was amended in 1993, allows the
establishing a strong foundation trust to be established for a
term of 50 years and is renewable
anytime during its existence. The Bank trusts are established by a
beneficiary can instruct the bank Mexican Notario (Notary),
to sell or lease the property at following the receipt of a permit
any time. The bank (trustee) by the Minister of Foreign
holds the trust deed for the Affairs. This procedure is
person who purchases the property routine due to the large number
(beneficiary). The property is of foreign property owners. The
not part of the bank’s assets and forms are standardized and the
cannot be liened or attached for entire process is usually
any other obligations. completed by the notary as part
of the closing procedure
Why was a trust system
established? How does First American Title
Company ensure property purchased
The Mexican government in Mexico?
established the trust system as a
protection for foreigners First American Title Company
interested in owning property in works to ensure that any claims
Mexico. By making ownership pass will be handled in the U.S.
through the trust process, the without the buyer having to go
bank is required to check through the Mexican court system.
ownership, insurance, and liens That means that the title agency
against the property. There would will stand by the buyer in
be an automatic review of the response to a challenge to the
transaction, thus ensuring valid buyer’s title in Mexico.
ownership and no outstanding
indebtedness of the property First American was the first U.S.
Company to issue title insurance
When is a bank trust issued? policies on Mexican land and it
is the most used agency. Its estate transactions throughout
agents are experts in Mexican the country for over twenty -five
law, property ownership and years. The agency is directly
transfer system. First American involved with property purchasing
Title Company has been for The Pointe de las Conchas.
facilitating complex commercial,
industrial and residential real
About the Author:
The Pointe de Las Conchas - Condos & Beach Houses. Your Rocky Point Real State in Puerto Penasco, Mexico. Find out more today at http://www.thepointemex.com/
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Jose Nunez
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