Ejido Land in a Nutshell. 7 Basic things to understand before investing:

A vast majority of beaches and country side land around urban areas of Baja California Sur are “Ejido” land. If you are looking to invest in one or more of these properties, here are 7 basic things you must know about “Ejido” land:

  1. The “Ejido” is a legal entity.
  2. Mexico’s Federal Government is allowed to transfer Real Estate property to “Ejidos”, with the ultimate goal of achieving the people’s and Country Agricultural development.
  3. The “Ejidatarios” are rightful members of the “Ejido”, with use and voting rights over the “Ejido” land and its water.
  4. Only Mexican Citizens are allowed to become “Ejidatarios”.
  5. The “Ejido” land is not private property and it cannot be sold while it remains under the “Ejido’s” domain.
  6. Only a democratic resolution from the “Ejido” members can authorize the disincorporation of a parcel or portion of the “Ejido” land, in favor of an individual “Ejidatario” to own it as private property.
  7. “Ejidatarios” are allowed to transfer title of a parcel subject to certain legal requirements, such as the right of first refusal “derecho del tanto” of the family members and the “Ejido”.

When purchasing properties coming from “Ejido” land, only after the “Ejido” requirements have been met according to the Agrarian Law, a regular closing process must be completed to obtain title to the property by means of a Trust “Fideicomiso”, Mexican Corporation or any other legal vehicle to own property according to the purchaser’s needs.

CA’A Conde, Alvarez & Asociados, Attorneys at Law.  www.calaw.com.mx

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