When purchasing real estate in Mexico, particularly in regions like Cozumel, understanding the legal nuances of property ownership is crucial. One of the unique aspects of real estate transactions in Mexico involves the use of a trust known as a “fideicomiso.” This legal instrument allows non-Mexican individuals to securely own property within the restricted zone, typically within 50 kilometers (about 31 miles) of the coastline or 100 kilometers (about 62 miles) of the national borders.
A fideicomiso is a trust agreement established with a Mexican bank acting as the trustee. This arrangement grants beneficial use of the property to the buyer, who becomes the beneficiary of the trust. This is essential because Mexican law prohibits direct foreign ownership of property in the restricted zones.
The primary beneficiary of a fideicomiso is the individual or entity for whom the trust is created.
As the primary beneficiary:
In addition to the primary beneficiary, a fideicomiso may also designate a substitute beneficiary.
This role serves as a contingency plan in case the primary beneficiary is unable to fulfill their duties due to:
Understanding the roles of beneficiaries and substitute beneficiaries in Mexican real estate trusts (fideicomisos) is vital for anyone considering property ownership in Mexico, particularly in regions like Cozumel. By clarifying these legal distinctions, buyers can navigate the complexities of property ownership effectively and ensure their investments are secure and compliant with local regulations.
For expert guidance and assistance in setting up a fideicomiso or exploring real estate opportunities in Cozumel, consult with Karen Cozumel Real Estate. Our team is dedicated to providing comprehensive support and ensuring a smooth and legally sound property acquisition process in Mexico.
By staying informed and making informed decisions, you can confidently pursue your dream of owning property in Cozumel while enjoying the benefits and protections offered by the Mexican legal framework.
Contact Karen Cozumel Real Estate today to learn more about fideicomisos and how they can facilitate your property ownership goals in Mexico.