Cautionary Advice About Ejido Land For Foreigners Looking To Invest In Mexico
You may hear of foreigners having issues with their Mexican property; chances are the property they purchased belonged to Ejido.
Ejido (pronounced eh-hee-dough) was a product of the Mexican Revolution of 1910; it is a collective communal organization, and the land was lent to the people to use for farming and raising their families but remains owned by the government and regulated by Agrarian Law.
One of the primary objectives was to break up large stretches of privately owned land, into smaller lots, return the land to the people and ensure poor farmers had property to work. These parcels of land have been handed down generation after generation.
The land is not to be sold, leased or transferred to anyone, who is not an Ejidatario. Permission to use the land may be transferred to other Mexicans, but not to foreigners.
Non-Mexicans who occupy Ejido land are considered trespassers. Before you purchase property in Mexico, make certain the property can be legally transferred.
Originally the land granted to the people was not in the most desirable areas, but as tourism grows and small towns expand you find the high demand locations have spread into the ejidos, including beachfront and other desirable areas.
Non-Mexicans may discover these areas and offer a desperate family money for the land, then proceed to build houses or condos only to find later they do not have the title on the property. If you do not use a qualified Mexican real estate attorney to verify title, you are out of luck and may be removed from the property without any legal recourse.
In recent years new laws have made it possible to regularize Ejido land, and foreigner investors have been attempting to buy up this affordable property. After a lengthy process, possibly years, the dis-incorporated land is removed from the National Agrarian Registry and registered with the Public Registry. Meaning the land now has a private title, yet the problems are not over there are still other issues, such as the first right of refusal to the other members of the Ejido, workers of the land, and any family members before selling the property.
In general, it is not recommended to buy Ejido land unless you, as the investor have excess money, time and legal representation to complete the process.
Ejido titles are uncertain and not worth the risk; the Riviera Maya has many free title properties to offer for a safe and secure investment.