What’s a fideicomiso? The importance of a bank trust in Puerto Peñasco

The importance of a bank trust in Puerto Peñasco. Perspective: Las Conchas

Building or owning one’s dream home along the Sea of Cortez is an exciting prospect! Leaving a beach home investment to share with kids and grandkids is also a valuable attraction for many folks from around the world who may be looking for a casita in Puerto Peñasco.

One of the more curious aspects about foreigners owning property in Mexico, or rather along coastal areas as well as near the border, is becoming familiar with the Mexican bank trust…or fideicomiso (fee-dee-yo-come-me-so). In the case of many, this also involves learning about the ins and outs of a Master Trust – particularly when that Master Trust nears expiration, as in the case of the Las Dunas Master Trust in the area known as Las Conchas just east of town, set to expire in the Fall of 2017. To make sure property owners (of homes, lots, etc.) in Las Conchas are well-informed of the situation concerning the end of the Master Trust, and with time still to make appropriate changes to get new personal bank trusts, the Vecinos leadership (HOA) of Las Conchas has organized a series of talks in recent years to help folks prepare. Local Banks, trust preparation companies, and attorneys have frequently been on hand to help answer questions and provide guidance in picking the best option for a new trust.

Basically, Article 27 of the Mexican Constitution establishes that foreigners can not directly own property located in a 100 km strip along the border or 50 km from beaches. However, Mexican Banks are allowed to act as trustee institutions so that foreigners may create their own trust (fideicomiso), which, following the Foreign Investment Law of 1989, can last for 50 years and is renewable. As the local association of professional realtors (AMPI) explains, “The bank owns the real property rights, and the beneficiary owns the personal rights to use, rent, modify or transfer his rights to a third party. Ownership of these personal rights is evidenced through a deed prepared by a Mexican Notary, signed by the representative of the trustee bank and duly registered with local authorities.”

In the case of the Las Dunas Master Trust – which encompasses Las Conchas – this was established in 1987 and only for a period of 30 years. Generally, as people purchased property in Las Conchas, ownership was fulfilled through sub-contracts under the larger Master Trust. However, as the Master Trust nears its final sunset it is essential that people establish their own bank trust (fideicomiso) not under the Master Trust. This is true for those who own homes, as well as lots. It’s also important to note there will be no more Master Trusts.

Ginger Beauchamp, President of the Las Conchas Vecinos HOA, explains while they are working with their database to make sure all owners in Las Conchas are aware of the situation so they can make necessary adjustments with ample time, those who own lots and have yet to actually build are not currently part of the HOA database….so she wants to be sure to get the word out.

At a recent Master Trust “town hall” organized for the Las Conchas Vecinos, which was the 3rd such session held in the past two years, a number of folk shared personal experiences as each case in different. Some folks were able to combine two properties into one trust, while others used the opportunity in establishing a new trust to name additional beneficiaries. The point of such a town hall of course is to help uncover the mystery of the Mexican bank trust, and help folks with their family investments.

“20% of the time we talk with people whose parents bought in the 70s,” remarked one trust provider.

Beauchamp added, as she urged folk to learn more about establishing their own bank trust, “While I can’t speak for everyone, I don’t believe I’ll be here in another 50 years, and this is a great opportunity to talk about what having property in Mexico means for family in the next 50 years.”

If you live, have purchased, or are considering a home, condo or land in Puerto Peñasco, you may find it useful to contact one of the following to help with the bank trust process (most of the info provided from flyer at the Las Conchas “town hall”). If you are working with a real estate agent, be sure to get info on the bank trust process to help protect your investment:

100_2537-489x653 What's a fideicomiso? The importance of a bank trust in Puerto PeñascoIntercam Banco
Tel: 638 388 1191

Sun Valley
Tel: 638 383 8891
US: 520 829 4340

Atty. Ariel Villagran
MX cel (from US): 011 521 662 171 0660
US: 1-888-577-4907

The Law Office of Ricardo Borquez
Tel: 638 388 6110
US: 520 908 7866

PROASET / PROASET Bank Trust & Real Estate Consultants
Lorena Galvan / Jose Galvan
lorena@proaset-realty.com.mx / joseg@proaset-realty.com.mx
Tel: 638 107 5651 / 638 383 4404
US: 480 257 4570 / US: 480 463 9365

SQ Advisors
Atty. Suzeth Quintana
Tel: 638 388 9650
US: 602 824 8996

FMI Rentals
Tel: 638 388 0773
US: 602 288 8609

Additional contact:

Atty. Pablo J. Davila
Tel: 638 383 3483
US: 480 626 8892



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