EJIDO LANDS

Mexico Connect Forum Discussion Threads

Posted by charlie on Mayo 24, 2000

I am going down to Jalisco this Saturday and will be looking at real estate near the beach. Though I have read a fair amount that is on the Internet about purchasing land I do have a question. Can Ejido land be purchased using a bank trust or does it already have to be "regularized," a term a real estate agent used last time we were down there. Or does it become "regularized" and qualify for a bank trust during the escrow? Thanks

Posted by Bob Story on Mayo 29, 2000

Ejido land cannot be purchased, rented or leased. Proof of this can be found in Baja where several people are in the process of being evicted. Our company, Metrociti Mortgage Corp., will not even attempt to make a loan on ejido land. However, if the land has been "privatized," that is the members of the ejido have petitioned for and received legal title to their part of the former ejido land, then they can sell it, rent it or lease it out. But check with CORRETT (http://www.corrett.gob.mx) to be sure or else find yourself a responsible Notario who will. Buyer Beware!

Posted by Cindy on Mayo 24, 2000

Ejido land cannot be owned in a bank trust, ejido land is being regularized now, check to see the Corett schedule for the land you are interested in purchasing.

Posted by Charlie on Mayo 24, 2000

Cindy:

I haven't heard of this "Corrett Schedule." Who has this info? And how can it be accessed prior to entering into a sales agreement? Thanks. BTW, I typed in "corrett schedule" in Alta Vista search and came up with nothing. cp

Posted by Cindy on Mayo 25, 2000

What city in Jalisco are you looking, I've seen a Corett office in Puerto Vallarta. I think it’s near the Chevrolet dealer. Your realtor should be familiar with Corett, if not, run from the salesperson and find another. Or go to a good attorney in your area. What size the land you are looking at, it may not be included in Corett.

Posted by charlie on Mayo 25, 2000

A tiny little village north of Barra de Navidad called La Manzanilla.

Posted by David Eidell on Mayo 25, 2000

I am going to follow this with interest because not too long ago the ejido there stated to me that they weren't in a position to sell land in fideicomiso, but instead in an unofficial capacity.

Posted by Sean Gaynor on Mayo 25, 2000

Comisión para la Regulación de la Tenencia de la Tierra (CORETT) Río Sena No. 49, 7o. Piso
Col. Cuauhtemoc
México, D.F.
Contact: Arturo Orci Magaña, Dirección General Voice: (5) 208-69-65, Ext. 178
Fax: (5) 207-74-43
Email: dirgral@corett.gob.mx

This commission is responsible for general urban development planning and for the resolution of land tenancy issues when settlers locate on previously ejido or communal land.

Posted by WayneS on Mayo 25, 2000

Some of the difficulties involved in Mexico's attempts at regularization are described in an academic presentation on the web at: http://obelix.polito.it/forum/n-aerus/venezia/paper_varley.html

Posted by charlie on Mayo 25, 2000

Thanks to all who responded through the forum as well as directly through my e-mail. Now that I better understand the nature of "owning" ejido land, to the degree that one does, my question to all those who have invested and built on such properties, is how do you best protect yourselves? The most common point that was mentioned was know the person in whose name the property will be held ("presta nombre") and furthermore choose wisely. Are there any safeguards that one can take other than choosing wisely? Is there any written instrument that gives you some protection? Anyone who knows anything about arranging this aspect of "owning" ejido land, please enlighten me, either through this forum or direct.
Thanks very much, Charlie

Posted by Ernie Gorrie on Mayo 26, 2000

I was interested in some land in Mexico. But it was ejido land, so that quickly ended my interest. It is just too easy to lose out in that kind of transaction. A friend subsequently helped the ejido to go through the legal process so that titles could be granted and lots could be sold. We quickly bought a lot through a fideicomiso. The legal lot cost us US$14,500 while the lots were selling for $8,000 when they were in the ejido. But we got legal title. And we only paid once. Some who "bought" while it was still ejido land had to buy it again legally once the land came out of the ejido. Some who "bought" ejido land started to develop it, then didn't come back. Those lots were subsequently sold legally. I'm waiting for one of those "owners" to return, only to find that someone else bought the land that they only "bought."

One of my friends in Mexico told me that the biggest problem that gringos have in Mexico is that too many of them "check their brains at the border." How many people would "buy" land in Canada or the US from someone who didn't legally own it? In Canada (and I'm guessing the US), aboriginal Indian reserve land cannot be sold. How many gringos would "buy" that land? But apparently lots of gringos will "buy" similar land in Mexico. Then they often squawk when they are told they don't own the land. Even worse, they try to "sell" land that they don't own because they "bought" it from someone who didn't own it in the first place.

Here in British Columbia we have recently been reading about a British Columbian who did just that near PV. She is the aunt of our most recent Premier (Americans, read "Governor.") This woman, now in her 70s "bought" ejido land using a presta nombre. She built a condo on it and "sold" units. Some of the gringo "purchasers" subsequently complained that she had defrauded them. She ended up in the charming federal prison and the local jail. She continues to claim that she did nothing wrong.

Posted by Cindy on Mayo 26, 2000

Are there any safeguards that one can take other than choosing wisely? Is there any written instrument that gives you some protection?

You will keep the original cesion paper and have the presta nombre give you a power of attorney. If you go to a notario, they will have the form. You should also check the paper trail of ownership on the property to confirm that the person selling to you "owns" the property (I know he doesn't really own ejido property). Talk to other foreigners in town that have ejido property, they should help you get a notario.

© Mexico Connect 1996-2007