Ejito land or ejidal property: what is it? is it a bargain? what you need to know before you buy!
Ejito land – what is it?:
The state has ownership of these lands. The state grants usage rights to peasants, or farmers, who have the right to use the land, to live on the land and grow their crops. The rights of usage pass from father to son, but ejidal properties cannot be sold as private property.
Ejidal land can be converted to private property through a process called procede. This is a lengthy process that may take as much as five years to accomplish.
How is ejido land converted to private property?
Following are the required steps:
– Resolution within the ejido. A two-thirds majority must decide to convert parcel lands to
private property. This does not pertain to human settlement or communal property, also a part
of ejidal land. This pertains only to the individual parcels.
– Mapping, allowing for streets, gardens, other donated lands, human settlements and
communal lands.
– Allotment of a parcel to each ejiditario (farmer).
– Application to Agrarian Reform, Mexico City.
– Approval by the Agrarian Reform.
– Transfer of parcels to the individual ejiditarios.
– After this process is completed and registered with the Agrarian Reform, the ejiditario who wishes to sell to an outsider must first notify other family members, those who have worked the property for more than one year, then other ejiditarios in the group, neighbors, and the ejidal government before completing a sale to the outsider. These parties have the right of first refusal and notifications must be made following a specific procedure.
– Only after all correct notifications have been made does the ejiditario receive a deed and can then transfer in fee simple to third parties, nationals or foreigners.
A word of caution then:
If the price of the property seems too good to be true, it probably is and it may be because someone is trying to sell you ejito land that has not been converted to private property. Buyer beware! Make sure you are working with professionals who can help you with determining if a seller can legally transfer fee simple private ownership to you or not.
This blog entry would not have been possible without the extensive knowledge of Linda Neil at the Settlement Company in LaPaz, Mexico who greatly contributed to my understanding of what ejidal property is and how it is converted to private property.
Kerstin G. Brooks, ABR, Realtor
Brooks & Heinze Team
Remax NW Realtors
Cell: 206.276.5827
Email: kerstinbrooks@earthlink.net
Web: http://www.propertysalesmexico.com/
Kerstin G. Brooks, Broker 