Buying Ejido Land in Mexico
by Lic. J.E. Beaulne, LL.B.
I decided to write the following after so many requests from readers who wanted to know more or who decided that they needed legal representation….
For years I have said: “Buying EJIDO LAND is risky” but it seems that many have either thought that I was exaggerating. The result seems that we now have many persons who have invested their life savings and do not have “clear title” because they did not listen to reason.
Again I repeat: : “One should stay away from EJIDO LAND and, if the land was once EJIDO LAND one has to be sure that the all legal procedures were carried out prior to purchasing it.”
Because if all the procedures were not done as the law requires one’s Fideicomiso Traslativo de Dominio contract or “Escritura” can be annulled due to a request from anyone from the Ejido community who claims a Right on the property.
How can that be? The answer lies in article 84 of the “Ley Agraria” (the Federal law that regulates the ownership of land). Said article provides to every person, who is part of an EJIDO community, the right to request, at any time, from a tribunal that a Title on a part of the EJIDO territory be annulled.
Why would a member of the community ask for the annulment of the title? To answer this let us establish the following hypostasis: A big investment is made which has a big “real estate commercial value” a member of the community, that is the Ejido community, finds out that his rights were not respected because the legal process to eradicate the “Derecho de Tanto” was never done and he can ask the Ejido counsel to have the title cancelled as per the law and ask then legally acquire the property at the value that the evaluator will have set, which evaluation is always less than the real commercial value. Remember that in money business there is no friend or family.
So how to protect your investment, if you did “buy” a real estate property? First of all have an expert do a full research on the title chain, provide you with a certificate that will attest that there is no problems. I the event that the property was once Ejido land and that the legal process to eradicate the “Derecho de Tanto” was never done get in touch with a law firm that have the relations and knowledge to have the process done and registered.
Finally in Spanish we say: “Papel Habla” which means “Paper Talk” so listen to your papers not to Joe Blow…who blows wind….