Investing in Mexico? Beware of the Ejidos!
By: Khaki Scott
Much is made about the minor inconvenience of buying Mexico real estate within 50 km (about 27 miles) of a Mexican beach or within 100 km (about 62 miles) of a Mexican border, even though the fideicomiso, with the bank holding the physical title, is one of the safest ways to own and manage property. However, any inconvenience of owning property through a fideicomiso is totally insignificant when compared to the risk of unknowingly purchasing ejido land. It is these cases that often make international headlines and fuel rumors that someone’s home was “confiscated” by the Mexican government. Sadly, such situations are ultimately found to be the “fault” of the purchaser and could have easily been avoided by conducting a simple title search through a reputable title company. A full discussion of this situation – and how to avoid it – can be found in Yucatan Living.
Ejido land is land held in common by groups of landless (usually Native American) farmers who, prior to the early 20th century, only had access to land by leasing it from wealthy landowners. Before that time, these landless farmers were the counterparts to American sharecroppers. A reading of the Mexican government’s description of the ejido clearly shows that it is the Mexican government that retains title to the ejido but that the land has been set aside for the benefit of an entire group of landless farmers. The farmers may do anything they want with the land, including will it to their children, as long as they do not leave it fallow for more than two years. If the entire group votes to sell – and if the Mexican government approves – only then can the status of the land can be changed. This is why it is so important to have a good attorney when purchasing land anywhere in Mexico.
The State of Yucatan is a progressive state that makes it easy for foreigners to open businesses and to own land. There was a time when most of the land in the entire State of Yucatan was ejido land, but that has changed and the title to more ejido land than ever before is being cleared for sale. This is good news for investors, but they need to know, in advance, about where the current ejido land is and how it might affect their investment in property in the area. The State of Yucatan has a map of current ejido property that should give the investor an idea of where these areas are.
The fact that ejido land is near property that is being considered as investment should not be viewed as a negative. All of the State of Yucatan is currently undergoing massive rural development. Crops and all types of livestock are doing better now than ever. Fruit and produce farming are more successful than ever. Organic markets abound! Even horticulture and ornamentals are enjoying boom times. Areas that are not being farmed for livestock and crops are being reforested and are contributing to the eco-tourism industry. The wise investor will investigate the area in which he or she wishes to purchase real estate and consider all of the characteristics of the culture as well as the “lay of the land.” Investment in land in the State of Yucatan is still one of the best real estate buys in all of Mexico.
Click here to view a map of ejido land in the State of Yucatan and here to view a map of ejido land areas in all of Mexico.
[...] purchased by ASA for a reported 18 million dollars. An adjacent buffer area was purchased from ejido lands (properties owned by a collective group of people living on a determined piece of property as a [...]
[...] Investing in Mexico? Beware of the Ejidos! [...]
[...] purchased by ASA for a reported 18 million dollars. An adjacent buffer area was purchased from ejido lands (properties owned by a collective group of people living on a determined piece of property as a [...]
“who, prior to the early 20th century, only had access to land by leasing it from wealthy landowners.” Interesting, as if it has always been this way. It must make it easier to stomach choking out indegenous communities by sheerly disregarding the past. Indegenous, of course, referring to the first human occupants of the area and their descendants who still live there today and carry on their land use ethic and other traditions. “Wealthy landowners” stole their land from the Maya, who, after much struggling to maintain their way of life, are yet again subjected to the economically devestating advances of money-hungry white Europeans and their American descendants. Ejidos aren’t a problem unless you value profit over respect.
Here, here, Collin.
I’m really outraged by the casual tone of this article. Treating land that has rightfully been in the hands of indigenous people even before “wealthy landowners” came (much like greedy real estate investors) as an annoying “inconvenience” to investors is abhorrent. It’s much like treating the American Indians of this country like an “inconvenience” and then taking away land and decimating their population.
Please, people, read between the legalistic, benign-sounding lines to what this actually means for tons of peoples livelihoods. How would you like it if I swarmed down on your land – land your family have been on for hundreds of years – with a property title and told you that the contemporary legal system tells you you must vacate? This is land you farm, this is how you get your food. How would you survive?
Stop and think before you let the legalistic jargon crowd your brains.
Colin and Sara,
You are somewhat “preaching to the choir.” Descended from Native Americans myself, I too want to believe that “Indian land” should remain in the hands of the “Indians” – However… that is somewhat of a romantic notion on the part of those of us who do not live the lifestyle found on an ejido. Some love that land and will live there all of their lives. Their children will get degrees in environmental engineering, agriculture and forestry, then return to the land to become some of the most environmentally sound farmers in the world! However, for others, the dream is to have their children become whatever they want to be – and that often involves leaving the ejido for college and the outside world. There is no way I would want to trap them there and decree that, by an accident of birth, they must remain in the lifestyle of their ancestors. That isn’t right and it isn’t fair. Perhaps there is a middle ground somewhere, where all sides can reach for their dreams.
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