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When do I use a Real Estate Trust (Fideicomiso) to acquire Real Estate Property in the restricted area?

April 26, 2017acquire area fideicomiso Property Real Estate Trust

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When do I use a Real Estate Trust (Fideicomiso) to acquire Real Estate Property in the restricted area?

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Real Estate Trusts are formed only when the investor has residential purposes.There are three parties that form this contract: The Trust Founder/Grantor (seller), the Trustee (Fiduciary, any Financial Institution in Mexico) and the Beneficiary (Buyer). The Real Estate property is transferred to the Trustee; the Beneficiary obtains the right to “use” the property and to obtain all the products and benefits from it.To form a Real Estate Trust it is necessary to get a special authorization from the Foreign Affairs Ministry which takes approximately two weeks.The duration of a Real Estate Trust is 50 renewable years. Also as part of the contract, substitute beneficiaries (heirs) are designated. They will assume the remaining time of the initial Real Estate Trust.The Real Estate Trust allows the beneficiary to sell the property rights to another foreign or MexicanThe annual obligation of a Real Estate Trust is reduce to pay a yearly fee to the Trustee, which varies from one Bank to another.