Did you know that Mexico has 2 Independence Days? Cinco de Mayo, not celebrated much by Mexican Nationals, marks Mexico's independence from France. September 16th, which is a federal holiday in Mexico and celebrated robustly, marks Mexico's independence from Spain.

Having been invaded a few times over its history, the writers of the Mexican Constitution put some restrictions on foreign ownership of their land. To discourage invasion from land or sea, there is a "restricted zone" along Mexico's shores and borders. Puerto Penasco falls into that restricted zone by being within within 100 kms of the US border, and also within 50 kms of the Sea of Cortez.

However, foreign investment is what turns small fishing villages into resort towns, and, for better or worse, provides much needed income from tourism. And so, the Mexican Bank Trust as a vehicle for foreign ownership in the restricted zone was invented, and has been in use for decades now.  This vehicle allows foreigners to own in the restricted zones of Mexico.

A trust is a trust, whether it's a Living Trust, a Family Trust, or a Mexican Bank Trust, it's pretty similar.  There is a Trustor, the buyer(s) who is placing his real property into the trust, the Trustee, in this case the Mexican Bank, and the Beneficiary, usually the same as the buyer (and his/her heirs).  The Beneficiary can be what is known as a "moral person", which is a corporation or other non-human entity, or a natural person.  So, a US corporation or LLC can purchase Mexico real estate and be the Beneficiary of the Mexican Bank Trust, as can natural persons.  As with any trust, the Mexican Bank Trust document clarifies what the Trustee may and may not do without the knowledge and consent of the Beneficiary.  The Mexican Trust term is 50 years, renewable for another 50 years.

It's not as complicated as it sounds, but it is different from what any real estate buyer or seller is accustomed to in the US.  For that reason, no one should try to navigate the purchase or sale of real estate in Mexico without his or her own licensed real estate advisor.  Contact a licensed real estate advisor in Mexico before you start looking at properties.  You need someone competent on your side.  Hopefully, that's me.

Buying Real Estate in Mexico

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Owning Mexican Real Estate Information from the Mexican Government