Choose Your Property and Agree on Terms: The first step, of course, is to find a property you wish to purchase and agree on the terms of sale with the seller. This part of the process may involve negotiation and inspection of the property.
Apply for a Permit: After the purchase agreement, the buyer needs to secure a permit from Mexico’s Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores). This is a formal recognition of a foreigner’s intention to acquire Mexican property in the restricted zone and is necessary for the bank trust setup.
Select a Trustee: The buyer must select a Mexican bank to act as the trustee. The trustee is responsible for holding the property on behalf of the buyer, ensuring compliance with Mexican law.
Establish the Trust: Once the permit is obtained, the bank, the buyer, and the seller enter into a trust agreement. This involves the seller transferring the property’s title to the bank, which then holds it in trust for the foreign buyer.
Define the Beneficiaries and Substitute Beneficiaries: The trust agreement will name the buyer as the primary beneficiary, who controls the property and benefits from its use or sale. It will also include substitute beneficiaries who would become the primary beneficiaries upon the death of the original buyer. These substitute beneficiaries are typically heirs, avoiding the need for probate.
Manage the Trust: The Fideicomiso allows the buyer to manage the property as they see fit, whether that means making improvements, renting it out, or even selling the property. The bank’s role in day-to-day management is minimal.
Renew the Trust: Fideicomiso lasts for 50 years but can be renewed indefinitely. The beneficiary should begin the renewal process well ahead of the expiration date to avoid potential legal issues.
In essence, the Fideicomiso allows a foreign buyer to exercise all the rights of property ownership in Mexico’s restricted zones without violating the provisions of the Mexican constitution. This trust structure offers a secure and legal framework for foreigners who wish to enjoy the beauty and investment potential of Mexican real estate.
Property Rights: As the trust beneficiary, you hold all the rights to the property. This includes the ability to sell, lease, mortgage, or pass the property to your heirs.
Asset Protection: The property held in a Fideicomiso is not considered an asset of the bank. If the bank faces financial trouble, your property is safe.
Estate Planning: Having a Fideicomiso eliminates the need for a will concerning your Mexican property, as you can directly name your heirs in the trust agreement.
Uninterrupted Control: As the trust beneficiary, you maintain complete and uninterrupted control over your property, as though you held the title directly.
Legal Protection: All transactions are overseen by Mexico’s National Banking and Securities Commission, providing you with a secure and transparent property acquisition process.
Navigating the waters of foreign real estate investment can be intimidating, but with a Fideicomiso, purchasing property in Mexico’s restricted zones becomes a manageable and secure process. Whether you’re eyeing a serene beachfront villa or a bustling seaside condo, a Fideicomiso can pave your way to owning a slice of Mexican paradise.
At Grupo Nar, we’re here to guide you through every step of your real estate journey in Mexico. Our team of experienced professionals is ready to answer your questions and help you navigate the intricacies of Mexican real estate, including the Fideicomiso process. Feel free to reach out to us to explore the possibilities that await you in this vibrant and diverse country.
When you’re in the process of buying a property in Mexico, two crucial roles can significantly impact your transaction: the Notary Public and the Closing Coordinator. Each plays a distinct part in ensuring the real estate transaction is legal, fair, and runs as smoothly as possible.
In Mexico, a Notary Public (Notario Público) is not merely a person who can administer oaths or statutory declarations, as often understood in many English-speaking countries. They play a much larger role, especially in real estate transactions.
A Notary Public in Mexico is a highly experienced lawyer, appointed by the state governor and ratified by the state’s Executive Council. They are charged with executing many high-level legal activities, including validating and certifying real estate transactions.
Verification of Property Status: The Notary Public verifies the legal status of the property, ensuring there are no liens, encumbrances, or other potential legal issues that could impact the transfer of the title.
Mexican Contract LawCalculation of Taxes and Fees: They calculate and arrange for the payment of all associated transaction taxes and fees.
Preparation of Deeds: They prepare the official deed of conveyance (Escritura Pública), the legal document transferring the property’s ownership.
Signature Authentication: They verify and certify the identities of all parties involved, and ensure all parties understand the contract terms before signing.
While the Notary Public ensures the legality of the transaction, a Closing Coordinator plays a different, yet equally important role. They can act as your point of contact and guide through the entire process, especially if you’re a foreign buyer unfamiliar with the intricacies of Mexican real estate transactions.
Bilingual Support: Language barriers can cause significant misunderstandings during a property transaction. A bilingual Closing Coordinator can communicate clearly with all parties involved, ensuring you fully understand every aspect of the process.
Coordination of Parties: Real estate transactions involve many parties, including the buyer, seller, bank, Notary Public, and more. A Closing Coordinator manages communications between all these parties, ensuring everyone is informed and on schedule.
Expert Guidance: With comprehensive knowledge of real estate laws and processes, a Closing Coordinator can provide expert guidance and advice, helping you avoid pitfalls and make informed decisions.
Expert Guidance: With comprehensive knowledge of real estate laws and processes, a Closing Coordinator can provide expert guidance and advice, helping you avoid pitfalls and make informed decisions.
Stress Reduction: Having a professional handle the transaction logistics reduces the stress and burden on you, allowing you to focus on the excitement of your new property.
Time Efficiency: A Closing Coordinator can expedite the process, having familiarity with paperwork and experience dealing with property registries and other governmental offices.
Navigating a real estate purchase in Mexico doesn’t have to be a daunting task. With the legal expertise of a Notary Public and the strategic support of a Closing Coordinator, you can rest assured that your transaction will be handled professionally and efficiently.
At Grupo Nar, we are committed to providing a seamless property purchasing experience. Our team of professionals, including dedicated Closing Coordinators, are ready to guide you every step of the way. Contact us today to explore the opportunities awaiting you in the Mexican real estate market.
Today's legal system of Mexico is the result of the dynamics of many unique social, racial, political, religious, and economic historical factors that gave birth to the Mexican nation and that have propelled it to the present. An exhaustive study of such a complex social institution is far beyond the scope of this work. This work, as the title implies, is a guide to the legal system of Mexico. It is meant to serve as the point of departure for the study of the legal system of Mexico and not as the final point for such a study. The guide is arranged by legal topic and points to primary and secondary sources. Primary and secondary English language sources were sought out especially for inclusion in this guide. Sources for obtaining the primary and secondary materials (print and electronic) cited in the work are provided.
Mexico’s legal system stems from the Civil Law Tradition. This occurred as a result of Mexico’s long historical association with Spain. It is important to be aware of some of the most important concepts of the civil law tradition in order to formulate research strategies in conducting research into Mexican law. The Civil Law Tradition is the oldest and most widely used legal tradition in the world today. Its foundations were developed in the Italian universities of the Renaissance when Roman law was rediscovered.
Other important historical contributors to the Mexican legal system were Roman law, canon law, and medieval commercial law. Roman law influenced “the law of persons, the family, inheritance, property, torts, unjust enrichment, and contracts.”[1] The influence of canon law is found mainly “in the area of family law and succession (both parts of the Roman Civil Law), criminal law and the law of procedures.”[2] The third historical component, medieval common commercial law, is most evident in the commercial codes of the modern civil law tradition.[3]
The most important contributions of secular natural law and secular positive law are in the public law area. They are most evident in constitutional law, administrative law, and the judiciary.[4] The civil law tradition divides the law into two major areas of law: private law and public law. Private law concerns the legal relationships between individuals. Public law concerns the legal relationships between individuals and the state.[5]
The historical legal roots of the Mexican legal system go back to 16th-century Spanish law and to pre-Columbian indigenous law.[6] Spain ruled Mexico for over 300 years and consequently left its mark on the legal system of Mexico. The link to Pre-Colombian indigenous law is traced through the Aztec Empire which was the dominant political power in Mexico at the time of the arrival of the Spaniards. The Spanish conquistadores found an advanced indigenous legal system in place when they conquered the Aztec Empire. The Spanish Crown did not do away completely with the indigenous legal system. Instead the Crown kept the indigenous laws and legal institutions that did not go directly against established Spanish customs or against Church doctrine. The Spanish Crown also introduced its own laws and legal institutions to replace and/or supplement what was discarded, and the Crown passed laws and created legal institutions that were intended for Colonial Mexico, legislation that did not exist in Spain.[7]