What is a Bank Trust or Fideicomiso?

A bank trust or what is locally referred to as a Fideicomiso, is the agreement or contract which is contained within the Title deed whereby the bank, known as the trustee (Fiduciario), holds the title for the buyer (Fideicomisario) who, in turn, has all the beneficial rights of use and enjoyment of the property. A new bank trust is normally for a period of 50 years and can be renewed for a further period of 50 years.