A Fideicomiso is a Trust, similar to an Estate Trust in the United States which gives the owner of the property all of the rights of ownership. This is not a land lease. The Trust is established solely for the ownership of land in Mexico. The Ministry of Foreign Affairs is the agency that issues a permit to the Mexican bank of the purchaser’s choice. The bank acts as the “Trustee” for the Trust. The Purchaser, (owner), is the “Beneficiary” of the Trust. The Trust is not an asset of the bank. The bank simply acts as the Trustee to hold the Trust and takes direction from the Beneficiary regarding the Trust. An annual fee is paid to the bank for acting as the “Trustee”.
The owner’s (purchaser’s) rights are the same as a property owner in the U.S. or Canada. These rights include the right to enjoy, sell, rent, and improve the property, etc.
The term of the Trust when first set up was 30 years. It is now a 50-year term and is automatically renewed at the end of the term an additional 50 years. The Trust can be renewed for perpetuity, allowing for long-term control of the property and allowing the owner to pass the property on to heirs. The Trust may be transferred to another Buyer or to another person via a Cession de Derechos (Succession or assignment of Rights.) There are fees for each transfer, which are calculated by a Notary in Mexico.