Purchasing Property

“Even if we were not Mexican, we would invest in Mexico, because it’s about to take off in a big way” - Daniel Chavez Moran (Founder of Grupo Vidanta, a Mexican Resort specialist)

Recently, the Mexican government targeted Riviera Nayarit for future growth and increased tourism. The following things on the ‘drawing board’ will have an enormous positive impact on the region:

• Carlos Slim, one of the wealthiest men in the world, is in the process of completing a toll road from Puerto Vallarta to Guadalajara and from Guadalajara to the town of Las Varas (6 miles from the Orofino Development.) This toll road will provide greatly improve accessibility for visitors and residents to Chacala and Orofino.​

More Development

• Portuguese entrepreneurs are investing $2,300,000,000 (USD) to develop a large piece of coastal property which is twenty (20) minutes south of Orofino.  It will be a typical recreational development: condos, hotels, and an 18-hole Greg Norman golf course.  This Portuguese project will enhance recreational pursuits for homeowners and vacationers in Chacala, while maintaining the undisturbed serenity the Orofino Development provides for those who don’t desire a typical hectic, crowded vacation destination.
• With the anticipation of the explosive growth of Riviera Nayarit, the Chinese are investing $3,000,000,000 (USD) at the northern end of Riviera Nayarit (San Blas) in order to build a cargo port that will compete with U.S. ports in Los Angeles, San Fransisco, and Seattle.  The advantage of this project for Orofino is that Asian commerce will be directly sent to Las Varas for distribution.  Las Varas is slated to become an important hub for imported goods from China and the Far East.  As a result, Las Varas will experience an explosion of infrastructural growth i.e big box stores, restaurants, boutiques, galleries, etc. – similar to those available in Puerto Vallarta.  This all present huge advantages to the Orofino Development by providing convenient access to world-class stores, restaurants, and services, while maintaining is serene location.  Las Varas is located twelve (12) minutes from Orofino.

Bank Trust (Fideicomiso)

It is a common belief that foreigners cannot own property in Mexico.  This belief is the consequence of the provision in the Mexican Constitution of 1917 that prohibits any and all foreigners from holding direct title to land within the “Restricted Zone” – a strip of land within 100 KM (60 miles) of a national border and 50 KM (30 miles) from the coastline.  However, since the enactment of the Foreign Investment Law (FIL) in 1973, that belief is no longer valid.  Unfortunately, for some, the misconception continues. Most likely, this erroneous belief is the result of either 1) A lack of awareness of the provisions of the FIL of 1973 (which created the Mexican Bank Trust.)  Or, 2) A lack of understanding a the how the Bank Trust works.
The FIL created the Mexican Bank Trust system which was then entered into and became law.  It permits foreigners to purchase “Restricted Zone” property for residential purposes while also complying with the Mexican constitutional requirements.
This Mexican Bank Trust (also known as a Fideicomiso) enables non-Mexican citizens to purchase property located within the “Restricted Zone” in Mexico and enjoy all the rights of ownership. The trustee is the Mexican Bank’s Trust Department and the beneficiary of that Trust is the foreign citizen seeking to purchase property in Mexico’s “Restricted Zone.” Because the “Owner of Record” is the Mexican Bank’s Trust Department, there is legal compliance with the laws as set forth in the constitution.
The trust agreement that governs the manner in which your property is managed stipulates that while the “Owner of Record” of the property is the Mexican Bank’s Trust Department, all rights and privileges of ownership to the property belong to the Trust’s beneficiary, the purchaser of the property. The constitutional amendment enacted in 1973 and amended again in 1994, allows the Trust to be established for a term of 50 years and is renewable, at any time, thus allowing legal and equitable ownership in perpetuity. 

The 50 year term of the Bank Trust has led many people to refer to property ownership in Mexico as a leasing transaction. Do not be confused by this misinformation. This is not a lease and you are not the lessee. You have all the rights an owner of property in the U.S. has, including the right to enjoy the property, the right to rent, the right to sell, the right to will the property to heirs or designees of your choice, etc. 
In setting up a trust, the bank is required to check ownership, insurance and liens against the property. This creates accountability for valid ownership of a debt-free property.