A common questions we have in the Mexico Real Estate market when assisting non Mexican investors or buyers is
Q.) “Would we be able to use the same Mexico bank trust for multiple purchases or does each property have to have its own trust”
A good question. Our panel of Mexico Real Estate experts will answer below
A.) Rita Sheese of Cozumel Capital covering the Cozumel Real Estate Market answers:
“Each property will need to have it's own separate trusts, each established for a specific property.
A Mexico bank trust, or fideicomiso, is established for a Property…so trusts are property-oriented, not people-oriented. A specific property is the object of each trust contract, and the reason for the trust being established As an example: when a property held in trust is sold, the trust stays in place, only the beneficiaries in the contract change — the original beneficiaries of the Mexico bank trust (sellers) cede their beneficiary rights to the buyers, who become the new beneficiaries of that same trust.
A.) Linda Neil from the La Paz Real Estate region adds “A Mexico bank trust is required for each property since the trust (fideicomiso) is actually a deed to the rights in a specific property. A permit from the Secretary of Foreign Relations is required for EACH property and the text of the permit is included in the fideicomiso deed. The only exception to the one deed per property rule is where two lots are contiguous. Then both can be put into one deed but usually will still require two foreign relations permits.”
A.) Ivan Castillo,regional director and practicing Mexico real estate lawyer from Stewart Title responded: “One Mexico bank trust must be used for each property. Each trust contains particular information of the transaction, such as: purchase price, trustee, substitute trustee, own SRE permit, appraisal, amongst other items.”
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Thomas Lloyd, graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. Mexico Real Estate Degree & Professional Identificacion Number S.E.P. #5978657. He is the current president of TOPmexicorealestate
written by Carol Billups, October 21, 2009