How does Fideicomiso (Bank Trust) works?

Information about Mexican Fideicomiso or Bank Trust

The Mexican Department of Foreign Affairs "Secretaría de Relaciones Exteriores", issues a permit to Bancomer, allowing it to act as a purchaser for the property (Trustee).

Bancomer holds the property in trust for you, bur grants you the right to occupy, shell, improve, build, lease or pass it to your heirs without probate.

The Fideicomiso is valid up to a period of 50 years, and once it expires it can be renewed.

You can transfer or terminate the Fideicomiso at anytime before its expiration.

The estate has to be registered in the Mexican Foreign Investment National Registry (RNIE), in order to keep an accurate record.

You, as the Beneficiary, have all the rights of use and enjoyment over the property.

Information about Fideicomiso or also known as bank trust.

Parties involved in the Fideicomiso.

The Settlor, the Trustee, the Beneficiary and the Substitute Beneficiaries.

The Settlor: The seller of the property.
The Trustee: A Mexican Bank in this case BBVA Bancomer, which holds legal title of the property for up to 50 years, and acts on behalf of the non-Mexican beneficiary in all transactions related to the property held in trust.

The Beneficiary: A non- Mexican investor, who retains the use and control of the property, and has the right to sell, use, improve, lease and transfer rights to a third person.

The Substitute Beneficiaries: The heirs.

The Fideicomiso Procedure.

•    Agreement
•    Fees and payment options
•    Assignment of Rights
•    Termination Agreement
•    Substitute Beneficiaries Modification
•    Acknowledgement of the Substitute Beneficiaries