A fideicomiso is a bank trust which is used to allow foreigners to legally buy land in areas close to the beach or national borders.
Since the rules about foreign ownership of prime land were relaxed in 1993, foreigners have been able to set up a fideicomiso which gives them indirect ownership of restricted land through a trustee. While the trustee is the legal owner of the land, the beneficiary of the trust maintains all rights to sell, lease or pass on the land.
This has some advantages, as expats owning land in Mexico through a fideicomiso may pass their property to heirs without needing a formal Mexican will. However, the system rests entirely on the credibility and trustworthiness of Mexican institutions which does put off some foreign buyers wary of taking on risks overseas.