What about Ejido Land?

This is a typical question from expats and foreigners that come to Mexico and deep on in the real

estate subject when they are looking for properties outside urban limits or in little towns in Mexico

or at the opposite side, when the small towns start to develop and grow due to the market demands,

going beyond urban limits due to the city or town-halls have not extended them yet. Occasionally

and wrongfully, there are cases that foreigners and even Mexicans intent to acquire this type of

land, that legally cannot formally be acquired in an easy way, and you will know why very soon.

 

Ejido land is a specific legal regime in Mexico, product of its own milestones as a country, it started

before revolution times and consolidated after it, as the main goal of these types of land were to

distribute, deliver, develop and grow the land in Mexico, founding population cells and at the same

time working the land in all aspects; mainly related to farm and agricultural activities as this kind of

property is mainly and specifically for the Mexican people that performs these activities.

 

The Mexican Constitution on articles 27 and 73 provide the legal stand of this property regime and

also there are several laws derived by these provisions that enacts all the legal system for ejido lands

that are regulated in all the Mexican territory, as it is dotted by its own Register of Land (RAN)

Registro Agrario Nacional, own judicial courts inside the Mexican Judicial Branch (Tribunales

Agrarios), own agencies (Secretaría de la Reforma Agraria, Procuraduría Agraria, etc), own legal

corporative structure of each ejido giving them a similar structure of a corporation (but not equal

functions of course) as who legally represents an ejido is “la asamblea ejidal” [Ejidal Assembly] and

who execute the resolutions of the assembly is the Comisión ejidal [Commission Board of the ejido].

Thus ejido matters finds a complex and unique kind of property that in all sights has a very different

legal treatment from private land, as to the private land does not apply all this regime, due to

normally private land is located in urban limits or very near to them, but still there are cases when

ejido lands are very near or inside urban limits, so location generally is a good parameter but not

the unique one to know if we are talking about  private land or ejido land in towns within Mexico,

as it is a case by case situation to review when foreigners want to invest in small traditional Mexican

towns.

 

The structure of ejido land is not quite complicated, as inside ejido land and by law, is sectorized

according purpose of activity, giving them a meaning and a function for the ejido, as per illustration

we can describe it as following; the space destinated to labor in agricultural and farm activities is

called “parcela” [parcel] where generally focuses the mayor piece of the ejido land. For recreative

purposes (soccer field, public plaza, or entertainment area, etc) it is called “asentamento humano”

[human settlement]. For general and economic activities and growth as schools or educational

institutes or headquarters of the Commission Board of the ejido, the piece of land is called “tierras

de uso común” [common areas]. For home-sites and resting for the people that lives in the ejido it

is called “solar”. These all pieces create the ejido land property, and with little exceptions of the law

the ejido land has the subsequent and mandatory characteristics; It shall not be subject to division,

it shall not be subject to be sold, it shall not be subject to adverse possession, and the people that

live in or near and people that could be by law inferred as possible stakeholder of the ejido shall

have the right of first refusal to transfer ejido land property rights in his/her favor by preference

before any one that is even Mexican (individual or corporation) that has nothing to do with the ejido

in question.

 

 

So, is it impossible to acquire ejido land?

No, it is not impossible, but all these factors play in favor of people involved in the ejido, and have

to be taken into account if a foreigner (or even a Mexican) is interested to acquire or intent to

acquire this kind of land that has to be converted first in private land before anything and acquired

by a Mexican in the first stage of the process after being turned to private. Mentioning also that

there are several paths to turn private the ejido land (depending on the section of the ejido to be

turned private, as there are some described above that could be easier to turn them private than

others), but still time is a key part of the processes that could apply to turn ejido land to private and

that your local lawyer could recommend.

 

Therefore, the proper keyword here as in several cases, is patience, patience for the process to

convert ejido land to private land so a Mexican can acquire the ejido land that turned to private and

then continue the process so the Mexican can sell it to a foreigner. Not forgetting that also the State

authorities where the ejido locates, also have to waive the first refusal rights that the law provides

in case they are not interested to develop a project in the piece of the ejido land that is intended to

be converted in private land.

 

In many cases the process to turn it private is very advanced, also there are cases were the President

of Mexico issues and delivers title deeds over parcels of ejidos turning them in private as there are,

as mentioned, several administrative or judicial paths to have a successful way to start the process

to acquire this type of particular land.

 

For a title deed review contact F-LEX