In 1972, the government of Mexico initiated a legal process of entitlement to protect foreigners known as the fideicomiso. Simply put the Mexican Government issues a permit to the federally chartered bank of your choice.

This allows the bank to hold title to the real estate as the "Trustee" for you the “Beneficiary”. The law authorizes Mexican banking institutions as trustees to takes instructions only from the beneficiary of the trust (the foreign purchaser).

The beneficiary has the right to occupy, develop, improve, mortgage, borrow against and enjoy the property. The beneficiary may also will or sell the rights and instruct the trustee to transfer title to a qualified owner.

When first established, the term of a Bank Trust was for 30 years only. In 1989 it was made renewable for another 30, and in 1993 the term was extended to 50 years with a renewable period of 50 years. The renewal must be applied for within this 50-year term.

This renewal process can be continued indefinitely, providing for long term control of the asset Thousands of people from countries around the world own real estate in many parts of Mexico. It has been estimated that 300,000 to 500,000 Americans and Canadians spend over six months each year in Mexico, many of which own real estate.