How does this Bank Trust (Fideicomiso) work?
With bank trust ownership, the bank holds legal title to the real estate and acts as trustee while the beneficial interest in the trust is owned by the foreign individual. The trustee bank is obligated to deal with the property only for the benefit of the beneficiary. The bank takes its instructions from the beneficiary owner. The beneficiary may be a foreign individual or other foreign legal person such as a corporation. With the Fideicomiso, or bank trust, foreigners acquire the same rights and responsibilities full ownership property gives. The name of the bank is on the deed but the foreigner is granted all the rights of ownership and the bank has no rights to the property. When the foreign owner decides to sell the property, the buyer(s) can assume the trust or take out a new one for another 50 year term. The foreigner must obtain the permit to own land from the Secretary of State, just as in direct deeds, which is proof that the Mexican government considers this to be “ownership”
