The Fideicomiso will continue, amendment to Article 27 of the Mexican Constitution has been Rejected
In May of 2013, the Mexican Chamber of Deputies (the lower house), approved legislation which would have amended the Mexican Constitution to permit foreigners to purchase property outright in Mexico’s Restricted Zone which is 100 kilometers (62 miles) from the borders of the United States, Belize and Guatemala, and 50 kilometers (31 miles) from the coastlines of Mexico.
Effectively this would have meant doing away with the Mexican bank trust, known as the fideicomiso.
This initiative has been rejected, according to a report from the Secretary of Government. (SEGOB)
Rejection of the proposed amendment is the result of not continuing with the amendment procedure within the time frame permitted under Article 89, number 2, Section III of the Rules of the Chamber of Deputies.
The result is that foreigners purchasing property in the Restricted Zone must continue to obtain titles using the bank trust system, the fideicomiso, initiated in 1972.
By John Glaab
John Glaab is Vice President of International Marketing at Mexico’s The Settlement Company® A Certified International Property Specialist (CIPS) he was named International Member of the year, 2012 by the National Association of Realtors® (NAR)