The Foreign Investment Law permits foreign investors to purchase,
through a trust agreement, all rights to the use and enjoyment of
properties located on beachfront areas. A trust is a legal
instrument, which allows foreign investment in México. Trust
contracts grant the trustee the same rights and obligations that a
Mexican property owner would have when purchasing real estate.

Under this arrangement, a Mexican Bank holds naked legal title to
the property and the buyer as beneficiary receives all of the rights
of ownership. The initial term of 50 years is renewable indefinitely.
Property may be used, improved, rented, willed or sold. One of
the advantages of trust ownership is the ability to appoint a
substitute beneficiary allowing the title to transfer upon death
without probate or payment of a transfer tax. This trust
arrangement allows for foreign ownership while leaving the
Mexican Constitution intact.