Use of the trusts when owning a property. In Mexico, owning property adjacent to the federal zone requires specific legal considerations. Trusts, known as “fideicomisos,” help facilitate property ownership in restricted zones. The federal zone includes coastal areas, beaches, and borders, where non-Mexican citizens face ownership restrictions. To protect foreign buyers, a trust ensures that property rights remain legally secure.
A fideicomiso allows a foreigner to invest in land within restricted zones without violating Mexican law. The bank serves as the trustee, holding the legal title to the property. The buyer retains all rights to use, sell, or transfer the property. The trust safeguards the process, preventing issues related to ownership in sensitive areas.
The trust provides security by following Mexican regulations. Without this structure, foreign buyers could struggle to transfer property or face legal complications. The process remains straightforward and transparent, ensuring the buyer’s interests. The foreigner stays the beneficiary, while the bank keeps the legal title.
The Mexican government enforces these regulations to control sensitive areas and prevent foreign ownership near military installations or borders. Using a trust system helps buyers comply with the law while securing a method to invest in property.
Furthermore, a fideicomiso offers a long-term solution. The trust renews every 50 years, giving the property owner stability. Trusts have established a reputation for providing foreign buyers a safe way to acquire property adjacent to the federal zone. Thus, trusts remain a reliable and practical option for owning land in Mexico’s restricted areas.
Use of the trusts when owning a property.
