| Does the Mexican government own my land if I | | | | order to act on the foreigner's behalf. |
| purchase land in Mexico? | | | | The Foreign Investment Law, which was amended in |
| Due to recent trade agreements made between the | | | | 1993, allows the trust to be established for a term of |
| United States, Canada, and Mexico, called the North | | | | 50 years and is renewable anytime during its |
| American Free Trade Agreement (NAFTA), and bank | | | | existence. The beneficiary can instruct the bank to sell |
| trusts, called Fideicomiso, foreigners are allowed to | | | | or lease the property at any time. The bank (trustee) |
| purchase land in Mexico. American Title companies are | | | | holds the trust deed for the person who purchases the |
| also involved in the purchasing process, allowing for | | | | property (beneficiary). The property is not part of the |
| secure transactions. | | | | bank's assets and cannot be liened or attached for |
| What is the North American Free Trade Agreement? | | | | any other obligations. |
| In 1994, North American Free Trade Agreement | | | | Why was a trust system established? |
| (NAFTA) between the United, States, Canada, and | | | | The Mexican government established the trust system |
| Mexico was formed as the world's largest free trade | | | | as a protection for foreigners interested in owning |
| area, allowing for purchasing land safely in Mexico. The | | | | property in Mexico. By making ownership pass through |
| agreement allows for economic growth and rising | | | | the trust process, the bank is required to check |
| standards of living in these three countries, while | | | | ownership, insurance, and liens against the property. |
| establishing a strong foundation for future growth and | | | | There would be an automatic review of the |
| setting an example of the benefits of trade | | | | transaction, thus ensuring valid ownership and no |
| liberalization. | | | | outstanding indebtedness of the property |
| Today, nearly 1.5 million Americans own property in | | | | When is a bank trust issued? |
| Mexico. As a foreigner, the buyer can obtain all the | | | | Bank trusts are established by a Mexican Notario |
| rights of ownership by setting up a bank trust, similar to | | | | (Notary), following the receipt of a permit by the |
| a US family trust, known as a Fideicomiso. | | | | Minister of Foreign Affairs. This procedure is routine |
| What is a Fideicomiso? | | | | due to the large number of foreign property owners. |
| A Fideicomiso makes a buyer the beneficiary of the | | | | The forms are standardized and the entire process is |
| purchased property, allowing the buyer to use, lease, | | | | usually completed by the notary as part of the closing |
| sell, will, improve or encumber the purchased property. | | | | procedure |
| The Trust does not give direct ownership to the | | | | How does First American Title Company ensure |
| foreign beneficiary. Instead, it establishes the legal basis | | | | property purchased in Mexico? |
| by which the bank holds the legal title to the property in | | | | |