The Mexican Establishment for Land for Sale

To many foreigners faced with purchasing beach real estate in Mexico, the Fideicomiso is a total mystery. 

Buyers may not understand 

when they are required to buy through the Fideicomiso, 

how it is created, 

what rights they have in the real estate, 

who acts as the trustee, what the cost is, 

how long it lasts, and 

whether the buyer can direct the trustee to sell or transfer the real estate held in the Fideicomiso. 

Ultimately, what buyers want to know is whether the arrangement is secure.

Article 27 of the Mexican Constitution states that foreigners may have ownership rights to 

land for sale in Mexico provided that foreigners agree before the Secretary of Foreign Relations (SRE) to consider themselves as Mexican nationals with respect to such property, and not to invoke the protection of their own government in matters relating to the property under penalty of forfeiting the property if they fail to comply with this provision (this provision is known as the "Calvo Clause"). 

                                    

Furthermore, Article 27 establishes an outright prohibition against foreigners acquiring direct ownership of real estate within 100 kilometers of the national borders or 50 kilometers of the coastline (this zone is now known as the "Restricted Zone"). 

                                       

These constitutional restrictions have been softened by Mexico's foreign investment laws and regulations.