Fideicomiso Trust Deed
Characteristics of the Trust
● The term or duration of the Real-Estate Trust is for 50 Years and can be transferred to a new property owner when the property is sold.
● At the end of the 50 year term, the Fideicomiso can be renewed for the same period of time.
● A Trust can also be cancelled during the purchase and/or mortgaging of a property and a new Trust opened with a new Bank to act as Trustee.
● Variables for transferring to a new Trust would be: length of time remaining on the existing Trust; existing Bank no longer offers Trust transfers; Bank requires buyer/borrower to place Fideicomiso Trust as a condition of setting up personal banking account.
● As a consequence of the Real-Estate Trust, the Trustee Bank receives the Real-Estate in property and simultaneously designates the new owner (Buyer) as Trustee Beneficiary.
● The parties to a purchase transaction are: i) Trustee Bank, ii) Trustor (Seller), and iii) Trustee Beneficiary (Purchaser/Borrower).
● The parties to a mortgage transaction are: i) Trustee Bank, ii) Trustor (Owner making the mortgage), and iii) Trustee Beneficiary (Lender / Global Mortgage).
Benefits of the Trust
● The Trustee Beneficiary shall have the possession of the Real Estate with all the authority to occupy the same.
● The Trustee Beneficiary can designate substitute beneficiaries for the event of death, which can avoid long probate procedures in México.
● The Trustee Beneficiary shall have the right to transfer its rights and to freely agree with third parties the transfer of Title.