How is a fideicomiso created?
To establish a Fideicomiso Inmobiliario or real estate trust, the banks charge a set fee plus a percentage of the value of the property in order to cover the costs of preliminary investigations and the generation of a draft of the trust contract. The bank also charges an annual commission for maintaining the trust, which averages $500 USD annually. The commission cannot be financed. The trusts or fideicomisos are registered on a bank’s accounts as part of the bank’s business holdings. The Mexican government has created the fideicomiso system to provide foreigners with the judicial security to acquire property without having to resort to modifying the 1917 Constitution. The majority of real estate agents in Mexico can recommend a bank, which has professionals whom speak English as well as publications that are available for answering any questions about the fideicomisos.
