EJIDO LAND
Ejido Land: What It Is and How It Differs From Private Property
If you’re looking at property in Loreto, you’ll likely come across the term “ejido.” Many properties in and around the Loreto area fall under this category, and it’s crucial to understand what this means, especially if you’re a foreign buyer. Ejido land is not private property, and the risks involved are significant if you’re unaware of its legal status.
What is Ejido Land?
Ejido land is communal land granted by the government, primarily for rural and indigenous communities to farm and use collectively. While individual members of the ejido (known as “ejidatarios”) have the right to use and manage the land, they don’t own it as private property.
Ejidatarios are given a Certificado Parcelario, which grants them usage rights to a specific parcel of ejido land, but it’s important to note that this is not the same as ownership.
What is a Certificado Parcelario?
A Certificado Parcelario is a document that gives an ejidatario the right to use and manage a specific parcel of ejido land. While it provides usage rights, it does not grant full ownership like a title deed. The certificado allows the holder to farm, live on, or otherwise use the land, but it cannot be sold or mortgaged as private property unless it goes through the regularization process.
Can Foreigners Buy Ejido Land?
No—foreigners cannot directly buy ejido land. Mexican law prevents the sale of ejido land to foreign buyers. While there is a process called “regularization” or “privatization” that can convert ejido land into private property, it’s complicated and lengthy. The entire ejido community must vote to convert the land into private property, and only after this process can the land be sold to foreigners or placed into a fideicomiso (trust).
Until the land is fully regularized, it is still considered communal, and foreigners cannot legally own it or place it into a fideicomiso.
Key Points to Remember:
- A Certificado Parcelario isn’t the same as a title deed: A certificado gives usage rights but not full ownership. Only after regularization will the land be eligible for a title deed, allowing it to be sold like any other property.
- Stay cautious of “bargain” prices: Motivated sellers may offer ejido land at incredibly low prices, but as a foreign buyer, you cannot legally own it unless it’s been privatized. No matter how good the deal sounds, avoid ejido land unless it has gone through the full legal regularization process.
- Get expert advice and do a title search: Working with a trusted real estate agent who can perform a proper title search is essential. They’ll ensure the property you’re interested in is fully privatized and can be legally acquired by a foreign buyer. This step protects you from costly legal complications or financial losses.
In Conclusion:
As a foreign buyer in Mexico, it’s crucial to understand that ejido land cannot be legally purchased until it’s gone through the lengthy process of regularization. Always work with an experienced realtor to avoid purchasing ejido land unless it has been fully converted to private property.
To discover other key factors and important things to look out for when searching for property in Loreto, make sure to download The Ultimate Loreto Real Estate Guide —our free, comprehensive resource packed with expert tips and insights. When you choose to work with Homes in Loreto, you get full access to our knowledge, expertise, and personalized guidance.
