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Baja Coastline Real Estate

About The Fideicomiso Law Legal Titles

Baja Coastline in Mexico is an area of magnificent beauty and is so close to the United States border that has become a natural temptation to buy Real Estate along the coast, however the Mexican Constitution created in 1917 stated in Article 27 prohibits a foreigner from buying title to residential real estate in areas referred to as "Mexico Restricted Zones" : land located within 30 miles of the coastline or 60 miles off either border and all of the Baja California Peninsula.

The fideicomiso law created in 1973 provides a legal, simple and safe circumvention of the constitutional provisions, allowing a foreign person to enoy property in Mexico.

The Secretary of Foreign Relations allows the trust to place legal title in the name of a Mexican bank, so the bank may administrate the property on behalf of the buyer/beneficiary, who enjoys exactly the same rights of ownership as a Mexican citizen. To establish a trust you can obtain a permit for a period of 50 years and then renew it several times, establishing perpetuity for owners of rights in Mexican Real Estate.

If you own property in Mexico under the trust just mentioned and want to sell it, you may assign your rights to the buyer or the buyer may obtain a new trust permit. The cost for the permit and registration in the foreign investment registry is currently about 1,950 dollars and bank trust administration fees may vary from 200 dollars to 750 dollars a year.