Making Changes to an Existing Fideicomiso
Most foreigns who have purchased property in Mexico have the property held in trust (fideicomiso). The exceptions for requiring a fideicomiso are if the property is outside of the restricted zone or the foreigner has obtained Mexican citizenship.
The restricted zone is defined as land located 100 kilometers from the borders and 50 kilometers from the coast of Mexico. Although the bank is the owner of the property on paper, the property is not a bank asset, and the beneficiary has all rights over the property, including the rights to sell, rent, remodel, and bequeath to their heirs.
Over time the property owner may need to make changes to the existing fideicomiso, whether it is due to the end of a relationship, entering a new relationship, or the death of a benefactor. The process of changing the names of a fideicomiso involves the following steps.
If a married couple with a fideicomiso file for divorce, they need to follow these procedures to remove one party from the trust (depending on their divorce agreement).
Removing one Party From the Fideicomiso
- The change must be formalized through an assignment of trustee rights from the party that is leaving in favor of the party that will keep the property.
- The assignment of rights must be done in a title deed, and the process is similar to one party selling the property to the other party.
This title change will generate the following fees:
- Notary public
- Municipal and state constancies
- Capital gains and transfer taxes
- Bank fee for modification of the trust
- Legal fees
Changing the Benefactor
The fideicomiso lists a beneficiary; in some cases such as divorce, marriage, or death of the benefactor, the homeowner needs to change or update the beneficiary.
- Draft an instruction letter ordering the bank to modify the trust, change the beneficiary, or add a new one.
- Ratify said instruction letter before a Mexican notary.
- If the trustee is aboard, you must certify the signature before a notary public with jurisdiction in their hometown and legalize or apostille the letter (depending on the trustee’s country of origin).
- Some banks may require you formalize the modification of the trust through a title deed.
This process is subject to the following fees:
- Notary Public fees for the ratification of the amendment of the trust.
- Bank fee for modification of the trust
- Legal fees
The cost of these procedures is dependant on the property, the bank, and the notary.
For more information based on your situation, please send us a message.