As a foreigner, you cannot register a deed to land in your own name in certain areas of Mexico that are within a zone 50 kilometers wide along the coast and 100 kilometers from the US border, known as the restricted zone, due to the Mexican Constitution. However, there is a solution that allows foreigners to own real estate in the restricted zone. In the early 70s, the Mexican government passed a law that permits foreigners to use a bank trust deed known as a Fideicomiso or Trust to own property in the restricted zone. This law was amended in 1993 to comply with the North American Free Trade Agreement.

Under the Trust, the foreign purchaser is named as the beneficiary and has all the rights of normal ownership, including selling, renting, improving, disposing or even destroying the property. The bank has no rights of ownership in the property, and the deed is not held as the banks asset. The foreign purchaser is responsible for paying all property taxes, utilities, and other charges made against the property. The bank charges an annual fee of $400 to $650, depending on the bank, for holding the deed of trust.