Amerimex - Buying Property Through a Fideicomiso Bank Trust



		BUYING PROPERTY THROUGH A FIDEICOMISO BANK TRUST

		INVESTMENT CLAUSE?

		PURCHASING THROUGH A MEXICAN CORPORATION

		IMMIGRATION AND REAL ESTATE

		A WORD TO THE WISE

		TITLE INSURANCE

		UTILITIES AND COMMUNICATION SERVICES

Foreigners most often purchase residential property through a 50 year Fideicomiso bank trust. For all intents and purposes the foreigner owns the land. A Fideicomiso trust is not a lease and never reverts to the original owner. The foreigner may sell the property, rent it and leave it to their heirs. The trust can be renewed at the end of fifty years. What happens after the second fifty year trust expires? Assuming you had not sold the property by then, you or your heirs would have the opportunity to renew it for another fifty years. When purchasing property with a Fideicdomiso trust, you will incur trust charges which include a permit from the Secretary of Foreign Affairs, recording fees with the National Registry in Mexico City, the first year annual administration fee, the bank acceptance fee and 10% IVA tax. Annual trust fees vary from bank to bank so you or your representative should shop the market. Apart from the Fideicomiso trust expenses the buyer

will also pay the usual closing costs associated with a purchase which normally include the title search, appraisal fees, tax certificate, notary fees for the deed, filing fees, transfer taxes (2% of the purchase price) and recording fees.

In general, Fideicomiso and closing costs for a moderately priced property should run about $4,500 USD excluding the 2% transfer tax and expenses such as engineering reports, title insurance, subdivision or survey . It is possible to place more then one lot in a single fideicomiso, however, each lot must have its own fideicomiso permit and will incur individual closing costs and transfer taxes. Even so you may save as much as 15% to 20% of the cost of two separate fideicomisos.
Keep in mind that the more valuable the property the greater the transfer taxes, notary charges and appraisal fees. Closing costs and escrow fees are usually higher in Los Cabos than in Todos Santos or La Paz.