Ejido (Agricultural) Lands have a long history in how they came into being. Essentially, they are similar to "commons land". After the 1910 revolution, communities and peasants were handed strips of land, in the main, to grow crops on, and they are called "ejidos". The ejidos are usually owned by a community of local people and the land is passed down from generation to generation within the communities which own the parcels.
You CAN buy ejido land, but the sale requires the agreement of the whole community that 'owns' it. The process takes time and particular expertise in the field, and there are firms which specialize in this area of property law and have a good track record of transferring land from "commons" into private ownership. For example, many of the big resorts once on ejido lands are now in private ownership, although smaller parcels of land, too, may be successfully and legally transferred into private hands provided the correct legal procedures and conditions are fulfilled.
Some big property developers may negotiate to buy a big plot of ejido land with a view to "fractionalizing" it (usually introducing mains water, sewerage and electric to the land as well), to develop property and/or to sell off the individual plots to small property investors. Under these schemes, the land is often re-classified and made available for private ownership. The process is usually undertaken by professionals who understand Mexican property law intimately and the procedures can go on from a year to several years.
There was a time when ejido lands were best avoided by private investors, but times have changed. There now exist law firms who can assist small, private investors to secure ejido land for private purchase. If you choose to purchase ejido land, you will need to factor the additional legal and consulting fees, as well as adjust your time-scale expectations, as the negotiations and procedures to secure ejido land are longer and more complex than passing the title of land already in private ownership.
We recommend that you seek appropriate legal counsel when considering the purchase of land that is (or might be) ejido land— whether or not a physical building exists presently on the land.
Part of a Notary Public's duty is to check for proper title of the land, and if it was ejido land, the Notary Public should ensure that the correct procedures have been followed so that private title ownership is assured. If the Notary Public tells you that the land is (or was) ejido land, then you may also wish to seek professional legal counsel to establish the legal position of the property, independently of the Notary.
Note: It is advisable to purchase Title Insurance if the property you are purchasing is ex-ejido land (although regardless of the type of property, Title Insurance is a shrewd investment). Read more about Title Insurance under the heading of Title Insurance, above.
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