How Long Does It Take to Finalize a Property Purchase Through a Fideicomiso in Mexico?
Buying property in a foreign country can be both exciting and a little overwhelming—especially when the process is different from what you’re used to. For many foreigners looking to own property in Mexico, particularly near coastal or border areas, the fideicomiso (bank trust) is a key part of the journey. But how long does it actually take to complete a purchase through a fideicomiso? This article will walk you through the timeline and what to expect along the way.
What Is a Fideicomiso?
A fideicomiso is a bank trust that allows non-Mexican citizens to acquire residential property in Mexico’s restricted zones—areas located within 50 kilometers (about 30 miles) of the coastline or 100 kilometers (about 60 miles) of the borders. The property is held in trust by a Mexican bank, which acts as the trustee, but you, the buyer, retain all ownership rights and can sell, lease, or pass on the property
The General Timeline
In most cases, the process of purchasing property through a fideicomiso takes between 4 to 6 weeks from start to finish. However, this timeline can vary depending on several factors. For example, if a due diligence process is carried out, the timeline will not begin until that step has been completed. Let’s take a closer look at each stage.
Step by Step
1. Offer and Acceptance (1–3 days): Once you find a property and your offer is accepted, both parties sign a promissory agreement.
2. Fideicomiso Application (2–3 weeks): The bank submits a request to the Ministry of Foreign Affairs for approval to set up the trust. This step usually takes the longest.
3. Trust Setup and Notary Work (1–2 weeks): Once approval is received, the notary prepares the deed and the trust agreement. If the closing company works in coordination with the notary, this stage can begin at the same time as the second stage, significantly reducing the overall timeline.
4. Closing and Property Transfer: At around the 4-week mark, both parties sign the deed before a notary, funds are transferred, and there is officially a new property owner.
5. Tax Payment: Once the deed is signed, the applicable taxes must be paid to complete the process. This step ensures compliance with all fiscal obligations related to the transaction.
6. Cadastral and Public Registry: After taxes are paid, the property is recorded with both the Cadastral Office and the Public Registry. This final step updates the official records, confirming the new ownership and ensuring full legal recognition of the transaction.
These last two stages after the signing take approximately 3 to 4 months, depending on vacation periods, as they are carried out by third parties.
Final Thoughts: What to Expect and How to Prepare
Purchasing property through a fideicomiso might sound complex, but with the right preparation and support, it can be a clear and rewarding experience. Knowing what to expect—and how long things typically take—can help reduce stress and make the process smoother.
Having someone with local expertise guiding you along the way makes a big difference. While the legal process has its rhythms, being well-informed and well-prepared gives you the peace of mind to focus on what really matters: turning your dream of owning a home in Mexico into reality.