A Fideicomiso is a bank trust commonly use by non-Mexicans to invest in any property in Mexico and own it as a beneficiary.
The beneficiary has the rights of real estate ownership while a Mexican bank holds the legal title to it as trustee.
The core responsibility of the trustee is to represent the beneficiaries’ interest.
There are also neutral investment fideicomisos. These fideicomisos can be used for (i) activities that are reserved to Mexican individuals or Mexican entities that do not admit foreign owners; and (ii) regulated activities that admit a limited percentage of foreign investment.
It would be good to mention the advantages of owning property in a fideicomiso. Isn't it smoother and less costly for a foreign buyer to transfer a property already in a fideicomiso to their name instead of setting up a new one to buy a property? And is a title search less necessary if the property is in a fideicomiso? Title can be a real headache in Mexico. Knowing the real history of the property and having it substantiated would be very good for a sale.