Hey there, amigos! As your trusty real estate agent in Cabo San Lucas, I want to make sure you're in the know when it comes to buying property in this incredible slice of paradise. And one thing you need to be aware of is Fideicomisos or Mexican bank trusts. Don't worry, it's not as complicated as it sounds, and it could be just the thing you need to make your dream of owning property in a restricted zone a reality!
If you're a foreign buyer, you may know that there are restrictions on owning property within 50 kilometers of the coastline or 100 kilometers of the border. This is where Fideicomisos come in. They are a type of trust agreement established between a Mexican bank and a foreign buyer, allowing you to own property in these restricted zones.
The bank acts as the trustee, holding legal title to the property on your behalf as the beneficiary of the trust. This means you have all the rights of ownership, such as the ability to sell, lease or improve the property, for a term of 50 years, which can be renewed for an additional 50 years.
Now, you might be wondering why you should use a Fideicomiso. There are several benefits to it. Firstly, it's an easier process than setting up a Mexican corporation, which can be complicated and time-consuming. Additionally, the bank acts as a neutral third party, ensuring the terms of the trust agreement are followed, which can help to prevent potential legal disputes or complications down the road.
Another advantage is that it makes it easier for you to transfer ownership of the property to your heirs when the time comes. When you pass away, the trust can be easily transferred to your designated heirs, avoiding the need for a lengthy probate process.
As your real estate agent, I'll help you understand the process of setting up a Fideicomiso and introduce you to reputable banks that offer this service. I'll also ensure that you understand the costs associated with setting up and maintaining the trust, so you can make an informed decision.
In summary, Fideicomisos are an essential aspect of buying property in Cabo San Lucas and other parts of Mexico. As your real estate agent, I'll make sure you have all the information you need about them to make the best decisions for your investment.
